Commission proposes emergency measures to curb gas prices and secure supply

Measure in Brief

The Commission proposes an emergency Regulation introducing joint EU demand aggregation and joint gas purchasing, a price correction mechanism to set a temporary dynamic limit on TTF transactions, development of a new LNG pricing benchmark, default solidarity rules and a mechanism for gas allocation in case of regional or Union supply emergencies.

Who Is Affected

The measures affect Member States and their undertakings, energy companies and market operators including exchanges and clearing houses, non-connected Member States with LNG facilities, and non-financial firms using derivatives, while vulnerable households are to be protected from consumption cuts.

What Comes Next

The Commission will task ACER to develop a complementary LNG benchmark by March 2023, proposes a temporary dynamic price limit on the TTF to be triggered when needed, and will carry out a REPowerEU needs assessment alongside proposals on flexible use of Cohesion funding of up to 10 percent worth close to €40 billion.

Sources

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