A new proposal from the Czech Presidency of the Council of the EU on a cap on gas prices under the market correction mechanism suggests capping it at 188 euros per MWh, the French Minister of Energy Transition said.
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“Today we have an offer from the presidency – 188 euros,” she told reporters ahead of a meeting of EU energy ministers where this mechanism will be discussed.
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The European Commission (EC) has previously proposed the creation of a temporary market correction mechanism in the EU for the largest European TTF hub.
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According to the idea of the EC, the mechanism could be started automatically under two conditions. Firstly, the settlement price of the monthly futures on the TTF index exceeds 275 euros per MWh for two weeks (slightly more than 2.8 thousand euros per thousand cubic meters of gas), secondly, the spread between the TTF price and the global LNG price is at least 58 euros per MWh. within 10 trading days.
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However, this is a very high level: the settlement price of a monthly TTF futures exceeded 275 euros in the entire history of the hub for only a few days in August this year.
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Ministers have already discussed this mechanism twice but did not agree on the level of the price limit.
