Scholz sceptical on gas price cap, warns against coal renaissance

German Chancellor Olaf Scholz on Thursday used an address in the Bundestag parliament to lay out his energy policies, saying that there were risks involved in imposing a European gas price cap and warning against a global increase in the use of coal.

"A politically agreed price cap always carries the risk that producers will then sell their gas elsewhere - and we Europeans will end up with less gas instead of more," Scholz said in a government statement.

He added that the European Union would have to coordinate closely with other gas consumers such as Japan and Korea to avoid competing with one another.

More than half of the EU's 27 member states are calling for a gas price cap, but countries including Germany and the Netherlands reject such market intervention. The European Commission has not made a concrete proposal for a maximum price.

Scholz also warned against a global increase in the use of coal as a result of the energy crisis prompted by the Russian war in Ukraine.

The war should not lead to a global renaissance of coal, Scholz said in parliament, adding that EU member states would work towards a joint stance on the issue at an upcoming EU summit.

Scholz declared Germany's dependence on Russian gas to be over and promised again that the country's energy supply for the winter was secure.

He reiterated that the state would protect households and the economy from soaring energy prices.

"No one, no family, no pensioner, no student and no business should be afraid of being overcharged for electricity, gas or district heating," he said.