The European Commission is due to propose another set of emergency measures on Tuesday to combat high energy prices, but preliminary proposals suggest they will not include an immediate cap on gas prices as EU countries continue to divided on the idea.
The package, the draft of which was seen by Reuters, is the latest effort by the European Union to deal with a rise in energy prices and the fuel supply crisis that has gripped Europe after Russia cut off gas flows since invaded Ukraine.
The Commission will propose on Tuesday that the EU can, as a “last resort”, establish a temporary “dynamic cap” for gas transactions at the Title Transfer Facility (TTF) Dutch gas hub, which serves as a reference price for negotiations. of gas in Europe.
Other EU gas trading hubs would be linked to that price through a “dynamic price corridor”, according to the draft document, which could change before it is published.
The move is not expected to affect the security of EU gas supplies, cause an increase in gas use or disrupt the functioning of gas markets, the document states.
Action to lower TTF gas prices would require a separate proposal from Brussels and would require approval from EU countries.
The EU package includes other measures to lessen the impact of high prices on consumers and businesses.
Until January 31, trading platforms must impose upper and lower price limits on each day that first month energy derivatives must be traded, as a way of limiting large price swings.
EU energy regulators would also be tasked with developing a new liquefied natural gas price benchmark by the end of March, and Brussels will roll out a “tool” for EU countries to start buying gas together, according to the draft. .
The EU package is unlikely to placate all 27 EU countries — whose leaders will discuss the proposals at a summit on 20 and 21 October. Most EU countries have urged the Commission to urgently propose a gas price cap, but disagree on its configuration.
The Commission and countries including Germany and the Netherlands have warned that capping gas prices could backfire if it leads EU countries to scramble to attract supplies from global markets or causes gas consumption to spike during a winter marked by shortages. Russian fuel.
Source: CNN Brasil
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