Gas price, ceiling of 275 euros per MWh proposed by the EU Commission


The cap would automatically trigger in the simultaneous presence of two conditions: the settlement price of the one-month derivative of the TTF, which should exceed 275 euros per megawatt hour for two weeks and the prices should be at least 58 euros higher than the reference price of the liquefied natural gas (LNG), for ten consecutive days within the same two weeks

The European Commission, under pressure from a growing number of Member States, puts on the table the awaited proposal to introduce a ceiling on the price of gas, but sets the cap very high, trying to find a difficult balance between the positions of the capitals . The EU executive proposes to introduce a market correction mechanism for natural gas, with a ceiling of 275 euros for the price per megawatt hour on TTF derivatives with delivery in one month. The cap would be triggered automatically in the simultaneous presence of two conditions: the settlement price of the one-month derivative of the TTF (Title Transfer Facility, the Dutch virtual market which is the benchmark for the price of natural gas in Europe) should exceed 275 euros per megawatt hour for two weeks and prices should be at least 58 euros higher than the reference price of liquefied natural gas (LNG), for ten consecutive trading days within the same two weeks.

The calculations

The reference price for liquefied natural gas, on which the spread with respect to the TTF price will be determined, would be calculated on the daily average of a benchmark basket, consisting of the spot price on the Mediterranean market, the spot price on the North-Western European market and from the daily assessment of the price produced by Acer, the agency that brings together the European regulators of the sector. “The proposal must take into account the concerns for the security of supplies and the ceiling must be high enough” to avoid an “increase in gas consumption” in Europe, explained the European Commissioner for Energy Kadri Simson, for whom in any case the proposal is “balanced”. –



Source-tg24.sky.it