EU Energy Emergency Measures
The new emergency Council Regulation will address high gas prices, which includes the following measures:
- A joint purchasing platform to obtain additional supplies for gas storage filling. This will consist of a mandatory participation of Member States’ undertakings in the EU demand aggregation to meet at least 15% of their respective storage filling targets.
- A new LNG pricing mechanism by March 2023. This will be developed by the Commission together with ACER aiming at providing stable and predictable pricing for LNG transactions.
- While the new LNG pricing mechanism is developed, a price correction mechanism to establish a dynamic price limit for transactions on the TTF gas exchange is created. In practice, transactions at a price higher than the dynamic limit would not be allowed to take place in the TTF.
- A temporary collar or bandwith to prevent extreme price spikes in gas and electricity derivative markets will also be introduced to protect energy operators from large intra-day price movements.
- Default solidarity rules between Member States in case of supply shortages, extending the solidarity obligation to Member States without connection to involve those with LNG facilities.
- Mechanism for gas allocation for Member States affected by regional or Union gas supply emergency.
GEODE will continue following the developments on the EU emergency measures and provide updates.