- Sputnik International, 1920
Energy Crisis in Europe
Europe is bracing for tough winter as US-led push to “punish” Moscow for its military operation in Ukraine backfired on the EU, which has faced months of skyrocketing energy prices and rising inflation after Brussels joined Washington in attempting to “phase out” Russian oil, coal and gas.

EU Energy Ministers Set Cap on TTF Gas Market at 180 Euros per MWh

CC0 / / Gas flames
Gas flames - Sputnik International, 1920, 19.12.2022
MOSCOW (Sputnik) - EU energy ministers reached a political agreement on a temporary mechanism to limit excessive gas prices, setting a price cap at 180 euros ($191) per MWh, the Council of the EU said.
"EU energy ministers reached a political agreement on a Council regulation that sets a market correction mechanism to protect citizens and the economy against excessively high prices," the statement said.
The EU sets the price cap on the Title Transfer Facility (TTF) at 180 euros.
"The market correction mechanism will be automatically activated if the following 'market correction event' occurs: The month-ahead price on the Title Transfer Facility (TTF) exceeds 180€/MWh for three working days," according tot he Council of the EU; The month-ahead TTF price is 35€ higher than a reference price for LNG on global markets for the same three working days.
The Council of the EU said that the mechanism will apply starting February 15, 2023, and will be monitored by the Agency for the Cooperation of Energy Regulators (ACER).
At the same time, the Council added that the EU's temporary mechanism to limit excessive gas prices will not apply to over-the-counter trades, as well as day-ahead exchanges and intra-day exchanges.
Russia's first liquefied natural gas (LNG) plant on Sakhalin - Sputnik International, 1920, 19.12.2022
Who Controls Gas Prices and How Are They Set?
"The ceiling will not apply to over-the-counter (OTC) trades (where participants trade directly between two parties, without being listed on an exchange), day-ahead exchanges and intra-day exchanges," the statement said. The mechanism will apply to month-ahead, three months-ahead and a year-ahead derivative contracts.
In late November, the European Commission proposed capping gas prices, with the initial plan intended for triggering the cap under two conditions: if the front-month price on the Dutch gas exchange TTF, Europe's main natural gas futures market, exceeds 275 euros ($293) per MWh for two weeks and if, at the same time, TTF prices are 58 euros higher than the liquefied natural gas global reference price for 10 consecutive trading days.
To participate in the discussion
log in or register
Заголовок открываемого материала