The European Union introduces a cap on gas prices

Today, Wednesday, the European Union introduced a dynamic gas price ceiling of 180 euros per MWh.

For actual implementation, many conditions must match, as a price correction mechanism will be implemented if gas prices exceed the index. TTF Dutch EUR 180 per MWh for three days if the difference between gas prices by index TTF Dutch, and the average LNG price is more than 35 euros.

It can also be stopped at any time in the event of a shortage of gas in the European Union.

On December 22, 2022, the EU countries officially agreed to set a gas price ceiling from February 15 this year.

The decision will be valid for one year. And by November 1, 2023, the European Commission must evaluate the operation of the mechanism, taking into account the situation with gas supplies. Based on the results, you can offer to extend it.

The head of the German energy company, Markus Kroeber, confirmed that the gas price ceiling agreed by the European Union would not work, noting that “there is an illusion at the European level that we can keep the price of gas.”

Source: TASS

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