The European gas price ceiling has now also been formally adopted. The EU countries approved the relevant legal text on Thursday, which will enter into force on February 15. The project only affects large clients trading on TTF, not end users.
As stated, the gas price ceiling is intended, under certain conditions, to limit the price in European wholesale if it exceeds EUR 180 per megawatt hour on the TTF trading platform. In that case, the price is capped at a maximum of 35 euros per megawatt hour above the international price for liquefied natural gas (LNG). Basically, the big customers trading on TTF are affected by the regulation, not end users, as is the case with the federal government’s gas price brake.
Arguing for months
The ministers had been arguing about the gas price cap for months. The German government in particular was concerned, but eventually agreed. In addition to the gas price cap, an emergency ordinance was also adopted on Thursday for faster approval of renewable energy projects, such as solar and wind systems. This should apply for a year and a half, while the gas price ceiling only applies for one year.
The responsible ministers already agreed on both measures on Monday. Now they are also formally decided.
Source: Krone
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