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Brussels proposes a cap of 275 euros on the price of gas purchases


  • The cap will be triggered if the Dutch price base reaches this maximum price


  • The objective of Brussels is to “achieve an immediate effect” in the market although the mechanism


  • In addition, the price cap will be automatically deactivated if a monthly review shows that the conditions for its application are no longer met.

The European Commission has proposed this Tuesday set a cap of 275 euros per megawatt hour (MWh) at the price of gas purchases that sand will activate automatically in the event of exceptional price rises and that will limit, to a month ahead, transactions in the regulated market, although the mechanism will have an emergency brake for its suspension in the event that it seriously disturbs the markets.

This market correction mechanism will establish the ceiling one month in advance of the products from the Dutch TTF futures market, which is used as a benchmark for the price of gas across the EU.

The cap will be triggered if the Dutch price base reaches this maximum price and only if the rise in prices does not correspond to a similar increase in the world market, with which there must also be a difference of 58 euros or more compared to the global average for two weeks, as confirmed this Tuesday at a conference press 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” in 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.

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