Europe's energy crisis is putting fresh pressure on governments to intervene in power and gas markets as surging prices threaten to squeeze consumers and industrial output, RBC Capital Markets strategists said in a note on Tuesday.
Italy is prepared to risk a European Union fine by intervening in its electricity and gas markets to narrow the premium it pays for natural gas, Energy Minister Gilberto Pichetto said. Rome has been negotiating with the European Commission over measures to reduce the gap between Italy's PSV gas benchmark and the Dutch TTF contract, but talks have yet to produce an agreement.
France is also pressing Brussels for immediate measures to curb energy costs. President Emmanuel Macron has called for a one-year delay to new EU methane-emissions rules and a temporary easing of refinery regulations that could allow diesel and jet-fuel production to rise by about 20%.
Spain faces a separate threat from soaring energy costs, with heavy industries warning that factories could be forced to shut or cut shifts this autumn. Electricity prices are expected to rise to about 170 euros ($194.39) a megawatt-hour from about 85 euros in summer, while gas prices have also tripled since the Iran conflict began.