Last week, the Energy Committee backed the amendments to the RED III proposal shortening the maximum period to approve new installations in certain areas to nine months.
This week, the Commission has proposed establishing a temporary Market Correction Mechanism, with a safety price ceiling of €275 on the month-ahead TTF derivatives given that two conditions are met. The mechanism, part of the package of measures to address the current energy crisis, will apply when the gas price exceeds €275 for two weeks and the spread between the TTF price and global LNG price is €58 or higher for ten trading days. The measure will be discussed between the Member States in the following weeks, but it is worth to note that with the proposed conditions, the cap would not have been employed last time prices peaked, in August. Meanwhile, market uncertainty over what it could mean if shortages appear in the future are fuelled regardless. Hence, neither side in the cap-or-no-cap dispute is happy with the Commission’s proposal.
Week ahead, ELS Analysis keeps its eyes on the new proposed measure, on today’s meeting of the Energy Council and the awaited political agreements on renewable energy deployment, coordinated gas purchases and price benchmarks.
