EU puts forward too high gas price cap

The European Commission proposed a very high cap of €275 per MWh on the price of gas on the EU's main gas trading hub, the Dutch TTF, to avoid abnormal gas price spikes, which also feed into power prices. The cap should only apply on month-ahead contracts, and only if a gap between TTF and LNG prices is greater than €58. The proposal will now be discussed by national governments. The gas price stands at €114, down from its August peak of €340. Economy Minister Karel Hirman does not expect the cap to be approved, as large countries such as Germany oppose it. They fear that suppliers would prefer Asian countries with higher prices.

(sme.sk)