The Twenty-seven discuss the proposal for a price cap on gas purchases
The energy ministers of the European Union will debate today the proposal of the European Commission to limit the price of gas in the TTF futures market, in an event that is expected to be intense since both the countries that demand to intervene and those that did not want any proposal on the table criticize the initiative. A majority of Member States They have been pressing for months so that Brussels design a system to limit wholesale purchases of gas in the EU, with Italy, Spain, Poland or France pushing in that direction.
But the Commission, aligned with Germany and the Netherlands, did not want to and has dragged its feet to the point that some capitals threatened to block other energetic texts in which a smooth processing was expected, if Brussels did not present a more ambitious legislative proposal.
Finally, and for the fourth extraordinary energy council since July, the European Commissioner for Energy, kadri simpsonhas put on the table a legislative proposal to limit exorbitant prices in the Amsterdam TTF market, which serves as a reference for a large part of the gas contracts in Europe.
An unambitious proposal
Specifically, the mechanism proposed Brussels as a “last resort” would limit to 275 euros per megawatt-hour (MWh) the price of one-month gas futures in the TTF, but it would only be activated if that threshold is exceeded for two weeks and provided that the difference with respect to the price of liquefied natural gas (LNG) in the international markets exceeds 58 euros.
These requirements mean that, if it had been in force, it would not have been applied even during the historic price record last August. In addition to these two conditions, the legislative project includes an arsenal of safeguards to suspend the cap if it jeopardizes the security of supply or the stability of financial marketsrendering the mechanism almost inapplicable.
The proposal has been criticized by countries that requested a cap, such as Spain, Poland or Greece, which criticize that it is inapplicable in practice, as well as by capitals such as The Hague, which did not want the Commission to make any formal proposal.
Spain fears that the new cap will trigger prices
The president of the Government, Pedro Sanchezhas considered “clearly insufficient” the proposal and has asked the European Union for “European commitment and ambition to address” a solution. At a press conference on the occasion of the first Spanish-Romanian Summit, Sánchez stated that Europe “it’s not on the right track” if that is the solution that is intended to be approved and warned that “it may even have perverse effects, not decrease but increase” Of the prices.
Along the same lines, the third vice president and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, has shown its rejection of the plan. “We are going to oppose forcefully, emphatically. It seems to us that for this reference it is better to do absolutely nothing,” Ribera denounced during his speech at the government control session held this Tuesday in the Senate.
*The article has been translated based on the content of lainformacion.com. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!
For all the latest news click here
Denial of responsibility! termbeamer.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at firstname.lastname@example.org The content will be deleted within 24 hours.