EU Ministers Have 'Different Views' On Setting Gas Price Cap At TTF Hub - Czech Minister

EU Ministers Have 'Different Views' on Setting Gas Price Cap at TTF Hub - Czech Minister

EU energy ministers have "rather different views" on setting a cap on gas prices via the TTF exchange proposed earlier by the European Commission, Czech Minister of Industry and Trade Jozef Sikela said on Tuesday

MOSCOW (Pakistan Point News / Sputnik - 25th October, 2022) EU energy ministers have "rather different views" on setting a cap on gas prices via the TTF exchange proposed earlier by the European Commission, Czech Minister of Industry and Trade Jozef Sikela said on Tuesday.

"We also had a discussion on the price cap of gas and the correction mechanism in the TTF. Here as you can imagine we have rather different views on the mechanism. The main question is how to make sure that capping will still allow us to buy gas we need on the market," Sikela said at a press conference following the EU Transport, Telecommunications and Energy Council in Luxembourg.

At the same time, EU ministers widely supported the introduction of a dynamic price cap on electricity and gas that would limit excessive price spikes in the event of a market panic, Sikela noted.

Most gas contracts in Europe are tied to the TTF benchmark. Last week, the European Commission proposed to put in place a mechanism to limit gas prices via the TTF exchange that could be triggered when necessary. In particular, the commission proposed a "targeted intervention" in gas prices as the TTF "no longer accurately reflects" the price of liquefied natural gas transactions in the union. Following the announcement, an EU official told reporters that not all member states of the European Union supported the proposal.