Green light from Brussels: this is what the EU gas price cap will look like – Radar
The European Union will have a price cap for gas. The problems of the Netherlands, among others, against the limit to prevent peaks in the gas price have not yet been resolved, but the other EU countries have pushed through the plan.
The Netherlands fears that the ceiling would become too low and that gas suppliers could exchange Europe for better paying customers. Minister Rob Jetten therefore did not support the plan during the final negotiations in Brussels on Monday, but, like Austria, abstained from voting. Hungary was the only one to vote against. Heavyweight Germany, which has long led the resistance to the price cap, did support the plan.
Up and running faster than suggested
The controlled market correction mechanism, which kicks in when the gas price peaks for several days, is progressing in working stages much faster than the cautious European Commission had suggested. The committee wanted to set the bar for the Amsterdam gas market TTF decision at 275 euros per megawatt hour. But that was unpalatable for many countries. In this way, the ceiling would not be reached even with last summer’s price records.
Ceiling at 180 euros per megawatt hour
The ceiling is now set at 180 euros per megawatt hour, the energy ministers of the EU countries have agreed. It must come into effect from February 15 if the gas price circulates above the limit for three days or more and that price is 35 euros higher than the destroyed target price for liquefied gas (LNG). Once the ceiling is in force, it will remain valid for 20 days, says the Czech minister who presides this six months.
Can still be disabled
If the price limit to go wrong can be turned off, said Czech Jozef Sikela. If gas consumption appears to increase or the European quarterly import of gas decreases.
Jetten ‘very happy’ but also has doubts
Minister Rob Jetten (Climate and Energy) abstained from the vote. The D66 member finds it ‘irresponsible’ that the mechanism is in operation in February, while an analysis of the consequences will only take place two weeks later. Jetten is ‘very happy’ that the EU can buy gas now that the EU ministers have made a deal on a gas price cap. Being able to buy together is “the great advantage” of the agreement on a market mechanism to counter price peaks, which is “potentially unsafe” for gas supplies, the minister said in Brussels.
Source: ANP