The European Commission (EC) has submitted for approval to EU countries a legislative proposal to introduce a mechanism to limit gas price spikes at TTF (the largest European gas hub, located in the Netherlands) for a period of one year, which will be automatically launched if necessary, a senior EU official told reporters
BRUSSELS (Pakistan Point News / Sputnik - 22nd November, 2022) The European Commission (EC) has submitted for approval to EU countries a legislative proposal to introduce a mechanism to limit gas price spikes at TTF (the largest European gas hub, located in the Netherlands) for a period of one year, which will be automatically launched if necessary, a senior EU official told reporters.
"Today we are making a proposal on a market correction mechanism," the source said. "We're not limiting high prices here, the purpose of the mechanism is to limit episodes of excessive gas prices," he added, specifying that prices on the TTF hub is in focus.
As for the duration of this mechanism, the European Commission proposes one year, the source said.
The European Commission expressed the idea of creating such a mechanism in mid-October, but in order for it to be agreed by the countries of the union, a more detailed official text of the legislative proposal was needed. The commission is making this proposal on Tuesday.
Now it must be considered by EU member states. It is possible that this will happen at an extraordinary council of energy ministers on November 24.
The source noted that the mechanism would not be launched immediately after the approval of the relevant legislative act and its entry into force, if this happens.
"It will be activated if certain conditions are met," he said.
