This will be done through joint gas purchasing, price limiting mechanisms on the TTF gas exchange, new measures on transparent infrastructure use and solidarity between Member States, and continuous efforts to reduce gas demand. The regulation hinges on the following main elements:
- Aggregation of EU demand and joint gas purchasing to negotiate better prices and reduce the risk of Member States outbidding each other;
- Advancing work to create a new LNG pricing benchmark; and in the short term proposing a price correction mechanism to establish a dynamic price limit for transactions on the TTF gas exchange, and a temporary collar or bandwith to prevent extreme price spikesin derivatives markets;
- Default solidarity rules between Member States in case of supply shortages, and a proposal to create a mechanism for gas allocation for Member States affected by a regional or Union gas supply emergency.
Today’s new measures will improve stability on European gas markets this winter and beyond and help to further mitigate the price pressure felt by European citizens and industry.
The following materials are available online:
- Publication date
- 18 October 2022
- Representation in Ireland