European Union (EU) energy ministers reached an agreement in Brussels on Monday to set a maximum limit on the price of imported gas, of 180 euros per Megawatt-hour (MWh), European sources revealed.
The compromise on the gas market correction mechanism, which required a qualified majority, was reached after several weeks of negotiations in which Hungary voted against and the Netherlands and Austria abstained, while all other member states voted in favour, according to European sources.
At issue is the temporary emergency measure proposed by the European Commission at the end of November to introduce a price correction mechanism for certain transactions on the Securities Transfer Market relating to natural gas, the TTF, which can be activated at high prices for several consecutive years. days to limit excessive increases.
This “last resort measure” aims to address situations of excessive prices by setting a maximum dynamic price at which natural gas transactions can take place one month ahead on the markets of TTF, the main European natural gas exchange.
The deal was reached in what was the last attempt of the year and under the biennial Czech presidency of the Council of the EU, and comes four days after the Union’s heads of state and government met at a summit in Brussels last Thursday, their energy ministers given a clear mandate to finalize an agreement today.
“The European Council welcomes the progress made and invites the Council to continue its work […] a regulation establishing a market correction mechanism to protect citizens and the economy against excessively high prices”, EU leaders stressed in the summit’s conclusions.
Source: DN
