The European Commission has also proposed a mandatory joint purchase of gas at the level of 15% of total demand.
The European Commission on Tuesday, October 18, made additional proposals to solve the problem of high gas prices and ensure uninterrupted supplies this winter. This is reported on the EC page.
So, in the short term, there is a proposal for a price correction mechanism to set a dynamic price cap for TTF gas exchange transactions, as well as a time limiter or bandwidth to prevent spikes price in derivatives markets.
In addition, the European Commission proposed a mandatory joint purchase of gas at the level of 15% of total demand.
EU countries have to notify the European Commission before any gas purchases.
The European Commission also intends to create a new price benchmark for LNG by March 2023.
In addition, the EC proposed to allocate 40 billion euros to help EU residents and companies amid the energy crisis.
It is expected that EU countries until March 2023 should reduce their monthly gas consumption by 15%.
The European Commission has also proposed obliging EU countries to share gas with each other in the event of an emergency.
“Russia’s invasion of Ukraine has fundamentally changed the situation in the EU energy market. The tools and rules that served us well before are no longer suitable for ensuring a reliable and affordable energy supply. In order to effectively face this crisis, we have the ability to buy gas together, focus on excessively high prices and ensure solidarity between our Member States in case of shortages,” said the European Commissioner for Energy Kadri Simson.
Earlier, the media wrote that the EU will not yet introduce a ceiling on gas prices.
It was also reported that the price of natural gas in Europe fell to almost $1,200 per 1,000 cubic meters for the first time since June 15.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.