The EU Commission presented its plans for a gas price limit on Tuesday. Accordingly, the price should be set at 275 euros per megawatt hour, as the Brussels authority announced.
This is to apply to derivative contracts on the Dutch TTF – the main gas trading venue in Europe. The price limit shall apply to contracts for deliveries agreed one month in advance.
EU Energy Commissioner Kadri Simson said the cap would apply for a year from early 2023. Households and companies should be protected against extreme price swings with the means. The measure is carefully designed not to jeopardize deliveries to Europe, to keep markets stable and also to ensure financial stability.
The idea of a price limit had repeatedly divided the EU in recent months. The latest proposal is to be discussed by the energy ministers of the 27 EU countries on Thursday. In Germany, the federal government is planning to reimburse households and small businesses for the December payment on their gas bills and to subsidize basic consumption for a limited period from January.
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