Gas, the new EU plan: “Price cap only in front of exaggerated prices and…”
The European Union back on cap on gas prices with a new proposal. This time, the “price cap” would be applied only in the event of exceptional increases and when the price peak on the European market (Ttf) does not correspond to a similar increase on the reference world market, i.e. that of liquefied gas. And its goal would be to avoid “major security of supply risks” and act as an effective tool against episodes of extraordinarily high gas prices.
In summary, this would be the new EU plan called “Diagram of the gas market correction mechanism” and presented by European Commission to the European ambassadors. This is not a legislative proposal. The reference price to trigger the mechanism is not indicated in the document and will be the subject of discussion between the countries.
A precise figure, therefore, does not exist. But to get an idea, “the exceptional price increase highlighted in August 2022″ should be used as an example of the circumstances to define the price levels at which a market correction mechanism could be triggered.
For now, the new proposal has not met with everyone’s approval. THE EU countriesIndeed, not only are they divided on the desirability of the mechanism, but those in favor also have different ideas of the type of roof to use. The Permanent Representatives will discuss the proposal – especially the price level which would trigger the application of the mechanism – most likely tomorrow, Friday 18 November.
In recent days, the Deputy Director General of Energy of EU Commissionspeaking to the industry committee of the European Parliamenthad underlined that, before presenting a real legislative proposal, the EU executive “would like to see an agreement” between the states. Depending on how the debate develops, a legislative proposal from Brussels could arrive no earlier than Wednesday 23, on the eve of the Extraordinary Council on Energy.
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