The European Central Bank has raised concerns over an idea to impose a cap on gas prices in Europe.
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The European Central Bank is worried about the potential risks to financial markets from an EU-wide cap on natural gas prices.
The bloc has been in intense discussions for several weeks over how to impose a limit on gas prices. The measure — designed to prevent sky-high costs for consumers — is proving controversial for Europe amid an acute energy crisis following Russia’s invasion of Ukraine.
The European Commission, the executive arm of the EU, suggested in November that the cap should sit at 275 euros ($290.33) per megawatt hour. However, several member states argued this did not go far enough and was unlikely be triggered.
The Dutch TTF, Europe’s main benchmark for natural gas prices, traded around 135.50 euros per megawatt hour Friday.
Discussions on the cap continue among the EU’s 27 member states ahead of a ministerial meeting Tuesday — as the ECB warns the cap could have repercussions for financial markets.
“The ECB acknowledges that mechanisms aimed at moderating extreme price levels and volatility in wholesale gas markets may, in principle, alleviate a number of risks to financial stability, including the risks exposed during periods of elevated and volatile gas prices in 2022,” the central bank said in a document Thursday.
“However, the ECB considers that the current design of the proposed market correction mechanism may, in some circumstances, jeopardise financial stability in the euro area,” it added.
The comments are in line with concerns raised by countries such as Germany and the Netherlands, which have asked for stronger guarantees that the cap is not going to disturb markets.
Supporters of the price cap have argued that the instrument will be monitored regularly and can be stopped if regulators, including the European Central Bank, identify any financial distress.
Some are hoping that a decision on the price cap can be reached at the meeting of EU energy ministers in Brussels, Belgium.
“We hope this will close at the ministers’ level next week. But there are still discussions on the sidelines. We will see,” an official working for the prime minister of an EU country, who did not want to be named due to the sensitivity of the talks, told CNBC Thursday.
Another official working in Brussels, who did not want to be named due to their proximity to the talks, said: “Consensus seems very much out of reach.”
The impasse over the measure highlights how sensitive — and technical — it is.
Indeed, some energy ministers have described the initial proposal to cap prices at 275 euros per megawatt hour as a “joke.”
Many nations, such as Poland, Greece, Spain and Portugal, are keen to implement the price cap. These countries are less able to mitigate the impact of the energy crisis on consumers, and have been pushing for EU-wide solutions as a result.
Kostas Skrekas, Greece’s environment and energy minister, told CNBC’s Julianna Tatelbaum last month that a cap should be below 200 euros per megawatt hour.
“[A] price cap at 275 euro is not a price cap. Nobody can … stand buying gas at this expensive price for a long time. We surely believe that the price cap below 200 euro, between 150 and 200 euro, would be more realistic,” he said.
Two European officials confirmed to CNBC that the current proposal being discussed is a cap of 220 euros per megawatt hour. However, this could change again before ministers meet on Tuesday.
Under the same proposal, the cap would only be triggered when prices are 58 euros higher than the LNG reference price for 10 consecutive trading days, and European gas prices exceeded the price cap for two weeks.
Several well-known players in the US electric bicycle market have recently joined forces in creative ways. Electric Bike Company, known for its local manufacturing in Southern California, has just announced a major merger with Integral Electrics, an e-bike brand uniquely designing electric bicycles for women and other short statured riders.
Both Electric Bike Company and Integral Electrics have carved out interesting niches in the industry. EBC has become famous for its extremely customizable electric bicycles. Riders can choose everything from the specific paint color to the combination of components and even the material choices – locally manufactured wooden fenders, anyone?
With multiple assembly locations across Newport Beach in Southern California, the local production has allowed EBC to respond quickly to one-of-a-kind builds that are designed by customers on its website or in any of hundreds of dealer locations around the US. The extreme customization has lent itself well to a market where customers often want to create unique bikes that show off personality and character.
Integral Electrics has also found itself an underrepresented market, but this time with a focus on female riders. The brand focuses on making cycling more accessible, regardless of a rider’s gender, height, or cycling experience. The company’s e-bikes are built to fit a wider range of riders, carry multiple children, and make cycling easier for everyone.
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The company’s founder and CEO Laura Belmar started Integral Electrics back in 2023 along with co-founder Paul Freedom, relying on her own experience struggling to find a cargo e-bike that she could comfortably ride with her children. A serial entrepreneur with successful ventures already under her belt, Belmar followed her instincts and tapped into that underserved market.
Now Integral Electrics and Electric Bike Company are merging under a single brand, with Integral Electric’s designs joining the EBC family. EBC has several famous models available, but the brand has long skewed more in the direction of cruisers and comfort bikes. The addition of Integral Electric’s cargo bikes and trikes will help further round out the diversity of models offered.
“Integral’s emphasis on female riders and on cargo e-bikes is a welcome addition to the EBC family,” said EBC founder and CEO Sean Lupton-Smith. “We want to stay on the cutting edge of where the e-bike market is headed, and Integral’s innovative approach helps push us forward.”
And with EBC’s local manufacturing, those bikes will be made closer to home than ever. “Building in the USA also has distinct safety advantages,” explained Belmar. “From my first visit to Electric Bike Company’s California factory, I have been indelibly impressed by the emphasis on quality and safety. Shipping bikes fully built and inspected is so much safer for customers. Electric Bike Company has already achieved one of our long-held aspirations. I’m honored to be part of this team.”
In a climate of tariff uncertainty, the ability to build and assemble bikes locally is becoming even more advantageous. “As tariffs, regulation and competition put pressure on the e-bike industry, Sean’s focus on customization and safety at Electric Bike Company was prescient,” added Freeman. “As we look around the industry, it’s clear that he has built a business that is well-positioned to meet this moment.”
As part of the merger, Belmar will assume the role of President and Chief Commercial Officer at EBC, and Integral Electrics’ Advisor Michael Edwards will join the EBC board.
The news of the merger follows quickly behind another major EBC partnership that saw Pedego ink a licensing deal with the brand to leverage EBC’s customization strengths to produce unique customer-designed Pedego e-bikes.
In addition to rolling out EBC’s Design Wall at many of Pedego’s stores, allowing customers to visually construct any e-bike combination right there in real-time on a large touchscreen, the partnership adds Pedego’s 150+ stores to EBC’s 250+ dealer network, giving customers access to one of the most extensive e-bike sales and service networks in the country.
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A nearly $50,000 electric SUV for just $99 a month? If that sounds too good to be true, it’s because it kind of is. One Honda dealer is promoting a Prologue lease offer for just $99 for 24 months, but you may have a hard time getting your hands on one.
Honda Prologue EV listed for lease at just $99 per month
Honda’s electric SUV is already one of the most popular EVs in the US. In December, it was the third top-selling electric vehicle trailing only the Tesla Model Y and Model 3.
Since the first models hit the streets last March, the Prologue climbed to become the seventh best-selling EV in 2024, beating out Chevy’s new Equinox EV and even the Rivian R1S.
Although Honda, like most, is offering generous discounts to clear inventory, one dealer is taking it to the extreme.
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Buena Park Honda in California is promoting a Honda Prologue lease deal for just $99 for 24 months (plus taxes) with a $3,977 down payment. The crazy low offer is for the 2024 Prologue EX FWD with 10,000 miles a year, but there’s a catch.
Honda Prologue listed for lease at just $99 per month (Source: Buena Park Honda)
For one, there’s only one model listed in its inventory, and it’s the Elite trim, listed at $51,850 (MSRP of $59,350 minus the $7,500 federal EV tax credit). You will also need a trade-in vehicle, including a 2014 or newer Honda or competitor brand.
A salesperson from the dealership told online auto research firm CarsDirect that the EX models are out of stock because they are “really hard to get your hands on.”
2024 Honda Prologue Elite (Source: Honda)
Also, if you factor in the down payment and $595 acquisition fee, the effective cost is $295 per month. That’s only slightly better than the official $239 for a 24-month lease offer Honda is promoting. With just $1,499 due at signing, the effective rate is $301 per month, or just $6 more.
2024 Honda Prologue trim
Starting Price (w/o $1,395 destination fee)
Starting price after tax credit (w/o $1,395 destination fee)
Starting price after tax credit (with $1,395 destination fee)
EPA Range (miles)
EX (FWD)
$47,400
$39,900
$41,295
296
EX (AWD)
$50,400
$42,900
$44,295
281
Touring (FWD)
$51.700
$44,200
$45,595
296
Touring (AWD)
$54,700
$47,200
$48,595
281
Elite (AWD)
$57,900
$50,400
$51,795
273
2024 Honda Prologue prices and range by trim
Although this is offered in California and other CARB emissions states, the Prologue is on sale in different regions for just $209 for 24 months. With $2,699 due at signing, the effective rate is still just $321 per month.
Honda says the Prologue “delivers the same level of quality, reliability, and performance” you expect from the brand.
Based on GM’s Ultium platform, the electric SUV has an EPA-estimated range of up to 296 miles. Although it shares GM’s tech, Honda fine-tuned the Prologue with an added multi-link front and rear suspension to give it a more “sporty” drive.
The Prologue has more interior space, with 111.7 cu ft of passenger volume, than the Honda CR-V (106 cu ft). It also features an 11.3″ touch-screen infotainment system with built-in Google, Apple CarPlay, and Android Auto support, something GM has moved away from.
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