The European Commission refuses to introduce a price cap on Russian gas, but insists on the introduction of windfall taxes on "excess" profits of energy companies. This is reported by The Guardian with reference to the relevant document.

The draft decree on the emergency power supply instrument, The Guardian has seen, contains no price ceiling on Russian gas or on imported gas after member states failed to agree on restrictions last week. The EU is expected to levy windfall taxes on the high profits of fossil fuel companies, with a separate revenue cap on low-carbon power producers.

European Commission President Ursula von der Leyen is expected to release Europe's plan to combat rising electricity prices when she delivers her annual speech Wednesday.

The final text is still subject to change, but the draft shows the Commission's doubts about getting enough support from EU member states for its preferred option of limiting Russian gas supplies.

EU member states that import large amounts of gas from Russia, including Hungary, Slovakia and Austria, have spoken out against limiting the price of Russian gas because they fear the Kremlin would stop all gas supplies, throwing their countries into recession.

About a dozen countries, including France and Poland, would like to impose a price cap on all imported gas, as they believe this is the best way to curb price increases. The Commission is not enthusiastic about this idea because it fears that the EU would lose out to countries willing to pay more in the highly competitive liquefied natural gas market.

The Netherlands and Denmark are wary of any price cap, while Germany fears that a price cap on Russian gas would cause controversy.