BRUSSELS: The European Commission proposed another set of emergency measures on Tuesday to tackle high energy prices, but steered clear of an immediate cap on gas prices as EU countries remain split over the idea.
The proposals, which need approval from European Union member states, are the bloc’s latest effort to address the spike in energy prices and fuel supply crunch that have gripped Europe since Russia cut gas flows after invading Ukraine.
The measures did not include an immediate gas price cap, which most EU countries say they want. But the Commission asked for EU countries’ approval to draft a proposal to set a temporary “maximum dynamic price” on trades at the Title Transfer Facility (TTF) Dutch gas hub, which serves as a benchmark price for European gas trading.
The Commission described this as a “last-resort measure”, and said the price limit would need to meet conditions, including that it doesn’t cause Europe’s gas demand to rise.
The EU proposed other measures to attempt to tame high prices by tweaking energy market rules. Trading venues would be required by Jan. 31 to impose upper and lower price limits each day on front-month energy derivatives, to limit volatility.
The EU would also task energy regulators with launching an alternative benchmark price for liquefied natural gas (LNG) by March 31, 2023. A separate proposal would launch joint gas buying among EU countries, to attempt to refill depleted storage caverns in time for next winter, and negotiate lower prices.
Comments
Comments are closed for this article.