The EU is discussing the need to extend the gas price ceiling – Kommersant

EU countries are weighing the need to extend the gas price ceiling, set at €180 per MWh. As he writes Financial Timesthis is due to a possible increase in gas prices amid the conflict in the Middle East and damage to the Balticconnector gas pipeline.

The European Commission’s report, presented to EU members, states that limiting gas prices has not led to negative consequences. Gas supplies to the EU countries continued, and its cost dropped by almost 90% compared to last year’s peak values, the FT writes, citing an EC document.

At the same time, as European diplomats and officials reported, the conflict between Israel and Hamas, as well as “sabotage” on the Estonian-Finnish gas pipeline, could negatively affect gas supplies in the coming winter. According to sources, the EU should provide “insurance” for such a scenario.

Meanwhile, writes FT, in addition to the European Commission, Germany came out in favor of extending the price ceiling, since the measure made it possible to speed up the issuance of permits for the construction of wind and solar power plants. German authorities believe that in connection with Russian special operations in Ukraine and subsequent sanctions, Europe’s dependence on non-renewable resources has become obvious.

EU Energy Ministers Deal on the introduction of a gas price ceiling in December 2022. It began to operate in February of this year. The restriction is activated if the gas price at the TTF gas hub in the Netherlands exceeds the ceiling, and the price must be at least €35 higher than the cost of LNG on the world market. The measure was introduced due to a sharp increase in gas prices in Europe (above €300 per MWh) after a reduction in Russian supplies.

Lusine Balasyan