EU proposes gas price cap: Energy Commissioner Kadri Simson announces
A European gas price cap at 275 euros ($283) per megawatt hour (MWh) has been proposed, Energy Commissioner Kadri Simson announced.
“We propose an upper ceiling on the month-ahead TTF (Title Transfer Facility) price in case it exceeds 275 euros per megawatt hour. Beyond that price, transactions will not be able to take place,” Xinhua news agency quoted Simson as saying
The market correction mechanism will be triggered when two conditions are met, the Commissioner explained.
Firstly, when the gas price exceeds 275 euros for two consecutive weeks. Secondly, when the spread between the TTF price and global liquefied natural gas (LNG) price is 58 euros or more for ten consecutive trading days.
