The EC proposed to introduce dynamic gas pricing and oblige countries to share it
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The European Commission (EC) has proposed a number of measures to curb gas prices in Europe. Among them are the joint purchase of gas by the EU countries, the introduction of dynamic gas pricing on Europe’s largest gas exchange TTF. This is stated on EC website.
“The European Commission proposes to introduce a price capping mechanism through the main European gas exchange, TTF, which will be launched if necessary. The price adjustment mechanism will temporarily set a dynamic price cap for TTF transactions. Transactions at a price above the dynamic limit will not be allowed in the TTF.
The EC said that this measure “will help to avoid excessive volatility and inflated prices.”
The European Commission also proposed to introduce a new temporary threshold for intraday price spikes, which will be set by the EU derivatives exchanges. It is said that this mechanism will protect energy operators from significant intraday price fluctuations. In addition, it was proposed to introduce a rule according to which it is proposed to oblige the countries of the union to share gas with each other in the event of an emergency.
The highest gas prices in Europe were on August 26 – over $3.5 thousand per 1 thousand cubic meters. m. This happened after the announcement of Gazprom about a complete halt in exports via Nord Stream. However, since October, gas has become cheaper against the backdrop of 90% filling of underground gas storage facilities in European countries. Today, exchange prices for gas in Europe fell below $1,200 per 1,000 cubic meters. m.
Read more about the restrictions of the EC – in the material “Kommersant FM” “Europe takes on gas”.
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