January 30, 2023

Raven Tribune

Complete News World

Germany agrees: EU countries agree on gas price cap

Status: 12/19/2022 5:26 pm

After months of wrangling, EU countries agreed on gas price caps. Accordingly, the cap may be triggered from 180 euros per megawatt hour from February 15.

In the EU, wholesale gas prices must be regulated in certain circumstances. As announced by the spokesperson of the EU Council of Ministers, the energy ministers of the EU countries agreed on the possibility of such market intervention.

The cap could be triggered from a price of 180 euros per megawatt hour, as stated in the decision taken in Brussels. So this mechanism can be implemented from February 15 onwards.

At the time of the decision, the price of gas in the TTF trading space was around 110 euros per MWh. In August, the price of TTF rose above 340 euros per MWh.

Germany apparently voted in favor of the mechanism

Germany also voted for the cover, according to news agencies dpa and Reuters. The central government has long opposed such a mechanism. He feared that security of supply would be compromised because suppliers could sell their gas in Asian markets, for example, where they could achieve higher prices.

The scheme essentially affects large customers who trade on the TTF trading platform – not end consumers, as with the central government’s gas price brake. Consumer prices are indirectly affected by wholesale prices.