Czech Minister Sikela: EU countries strongly disagree on the level of gas price cap
BRUSSELS, 24 November – RIA Novosti. The head of the Czech Ministry of Industry and Trade, Josef Sikela, said that EU countries are definitely in disagreement over the limit level for gas price proposed by the European Commission (EC) as part of a new mechanism to contain price increases. said at a press conference.
The energy ministers of EU countries exchanged views on these EC proposals at their meeting on Thursday.
“The debate has been quite stormy… There are very different opinions on the level of the limit proposed by the Commission,” said the minister.
On 22 November, the EC submitted a draft temporary gas market regulation mechanism as another measure to tackle the energy crisis. The EC hopes that the mechanism will help reduce gas market volatility and protect EU residents and businesses from sharp increases in gas prices.
The mechanism will be launched if two conditions are met simultaneously: the settlement price of the monthly futures contract in the TTF index exceeds 275 euros per MWh for two weeks (a little more than 2.8 thousand dollars per thousand cubic meters of gas in euro-dollar parity) and the TTF price The difference between the price of LNG and the global LNG is at least 58 Euros for 10 consecutive trading days. When the mechanism is activated, transactions corresponding to a price higher than 275 Euros will not be processed.
However, this is a very high level. The settlement price of monthly TTF futures currently exceeded 275 euros when Europe’s largest gas hub only existed for a few days in August of this year. Thus, on August 19 it stood at about 245 euros per megawatt-hour, jumped to a historic maximum of 340 euros on August 26 (just over 3.5 thousand euros per thousand cubic meters) and dropped rapidly, to about 265 euros on 30 August.
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