Brussels proposes a gas cap of 275 euros, almost seven times the Spanish limit

The European Commission has proposed this Tuesday to set a ceiling of 275 euros per megawatt hour (MWh) to the price of gas purchases that will be activated automatically in the event of exceptional price increases and that will limit, within a month, transactions in the regulated market , although the mechanism will have an emergency brake for its suspension in case it seriously disturbs the markets. This market correction mechanism will cap one month in advance on the products of the Dutch TTF futures market, which is used as a benchmark for the price of gas across the EU.

The cap will be activated if the Dutch price base reaches this maximum price and only if the price increase does not correspond to a similar increase on the world market, with which a difference of 58 euros or more must also be given with respect to the global average for two weeks, as confirmed on Tuesday at a press conference by the European Commissioner for Energy, Kadri Simson. However, the measure does not include non-regulated markets (OTC). The objective of Brussels is to “achieve an immediate effect” on the market, although the mechanism implies the possibility of being suspended if it causes “serious disturbances.” In addition, the price cap will be automatically deactivated if a monthly review shows that the conditions for its application are no longer met.

Source: LA INFORMACIÓN – Lo último by

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