ATHENS: Greek Prime Minister Kyriakos Mitsotakis has sent a letter to the European Commission proposing a cap on gas prices which have been soaring in recent months, a trend now exacerbated due to Russia’s war with Ukraine.

Gas prices have skyrocketed since last year as demand from economies recovering from the COVID-19 pandemic outpaced tight supplies.

An escalating economic conflict between the European Union and Russia which risks pipeline flows being disrupted, either by sanctions or retaliation, has prompted a further rise in prices.

In a letter sent to the president of the European Union’s executive Ursula von der Leyen and seen by Reuters, Mitsotakis said that every attempt by the EU to mitigate the burden of massive fluctuations in wholesale natural gas benchmark prices on households and businesses has fallen short.

He has also outlined a six-point plan for consideration, which includes a cap on gas prices, referencing the highest historic gas price before the latest energy crisis. “Unusual times require unusual measures,” he said. “In the short term, I believe a targeted and temporary market intervention is necessary to normalise the situation.”

He has also proposed a cap on gross profit margin in the wholesale electricity markets, a time-limited option to only allow trading with physical delivery, and coupling the European gas market with those of the United States and Asia to boost liquidity.

Greece has spent more than 2 billion euros ($2.18 billion) since September to help subsidise power bills for households, businesses and farmers and has said that support would continue until the energy crisis is seen off.