EU gas price cap still elusive as leaders meet

STORY: European Union leaders are meeting for the second time in two weeks to try to bring down energy prices, though persistent divisions make a cap on what the bloc pays for gas unlikely for now.

This was EU Commission President Ursula von der Leyen on the eve of Thursday's (October 20) summit.

"I know that Europeans are concerned. Concerned about inflation, concerned about their energy bills, concerned about the winter. The best response to (Russian President Vladimir) Putin's gas blackmail is European solidarity and European unity. And in this spirit the Commission agreed yesterday on a strong legislative framework to address the energy crisis."

Fifteen countries including France and Poland are pushing for a cap, but they face strong opposition from Germany - which is Europe's biggest economy and gas buyer - and the Netherlands, a major gas trading hub.

Members are expected to back some of the energy proposals the EU made this week, including an alternative price benchmark for liquefied natural gas and joint gas buying,

They've already agreed to fill gas storage and claw back revenues from energy firms to spend on helping consumers with crippling bills amid a cost of living crisis.

But they remain as split on whether and how to cap gas prices to stem high inflation and stave off recession, after Russia cut gas flows following its invasion of Ukraine.

Discussions could run well into the night, and could fail to agree on immediate action to tackle high energy prices ahead of winter.

EU energy ministers meet again next week and aim to agree on final measures in November.