BRUSSELS – ANSWER. Below but still above €200, the Czech chairman’s compromise proposal puts a cap on natural gas as intense negotiations continue in Brussels to improve the Commission’s proposed corrective mechanism for the Dutch TTF ahead of the Fifth Emergency Ministerial on 13 December, where everyone hopes the final decision will be made.

According to the project, the mechanism will be activated when the price of futures transactions exceeds 220 euros for five consecutive days – instead of 275 euros per megawatt-hour for a period of two weeks, which was offered by the commission – and at the same time the difference between the spot price in TTF and the average spot price price in LNG will exceed 35 euros for the corresponding number of days (instead of 58 euros for 10 trading days in the original proposal). “The market correction mechanism should be automatically deactivated after a month if the dynamic rate limit is below 220 euros for a certain period,” reads an adapted text of the Czech Presidency.

With regard to the suspension of the mechanism in case of market instability or problems with the gas supply of the Member States, it is indicated that the Commission will have the right to suspend the operation by means of an executive decision at any time during the declaration of a regional or Union state of emergency at the request of one or more Member States . If approved, the corrective mechanism to control the growth in natural gas prices will come into force on January 1, 2023.

Intensive negotiations to improve the Commission’s proposed corrective mechanism in the Dutch TTF.

Greek position

Last week, Greece and six other countries submitted a joint improvement proposal that included a limit of 160 euros per MWh or, alternatively, a dynamic limit calculated based on fixed and variable components with different weights, i.e. 75%. and 25% respectively. The value of the variable will be updated based on the average value of the benchmarks, which will have different weights in the calculation. According to sources close to the talks, efforts to further lower the ceiling and improve the terms of the offer are ongoing between Member States and the Council Presidency.

“Now is the time to try out the natural gas price cap mechanism, as weather conditions are favorable, natural gas consumption is declining, and warehouses in Europe are showing high occupancy,” the minister stressed. Environment and Energy Commissioner Kostas Skrekas speaks at the Hellenic American Chamber conference, warning that next winter (2023-2024) will be more difficult.

The minister criticized the European Union for delaying decision-making, the results of which are already visible: “Many European industries are reducing production or closing, all energy-intensive industries are suffering, which means that society will also suffer in the end. . However, there is time to take the necessary decisions, based on the proposal already made by the Prime Minister in March, to combat speculation on energy exchanges and Russian price manipulation,” he said.