The European Commission proposed to introduce a gas price ceiling of 275 euros per MWh
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The European Commission (EC) has proposed setting a cap on the monthly gas futures on the TTF hub index at €275 per MWh, informs EC press service with reference to European Commissioner for Energy Kadri Simson.
“Today, we are proposing a TTF gas price ceiling to protect households and businesses from extreme price increases. This mechanism is carefully designed to be effective without compromising our security of supply, the functioning of EU energy markets and financial stability,” Simson said. It is specified that the mechanism will start automatically when two conditions are met. First, the price of gas exceeds 275 euros for two weeks. The second is if the TTF price is €58 above the LNG base price for 10 trading days. The press service of the EC writes that this mechanism can be activated from January 1, 2023.
Earlier this month, Reuters, citing diplomatic sources, reported that the European Commission notified EU countries about the impossibility of setting a gas price ceiling in accordance with the requirements that were presented at the EU summit on October 20-21. According to sources of the agency, the EC found it impossible to impose price restrictions exclusively on Russian gas without affecting long-term contracts and security of supply.
Speaking at the forumRussian Energy Week» On October 12, Russian President Vladimir Putin again stressed that energy supplies to those countries that approve the price ceiling would be cut off. Before that, he repeatedly said that the introduction of restrictions would lead to an increase in energy prices. During the Eastern Economic Forum (WEF) Putin said that the idea of introducing a price ceiling on energy resources is “nonsense and nonsense.”
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