The EU is dealing with brand-new steps to alleviate gas rates.
Donato Fasano|Getty Images News|Getty Images
The European Union is dealing with brand-new steps to avoid exceptionally high gas rates after “excessive” levels seen this summertime, in a relocation that might have significant ramifications for European customers.
The European Commission, the executive arm of the EU, proposed Tuesday setting a limitation on everyday gas trading levels. The objective is to prevent cost spikes, which can result in greater energy expenses for families.
The front-month gas cost at the Dutch TTF center, a European criteria for gas trading, reached historical levels in late August, when the cost of gas leapt to 341 euros ($334) per megawatt hour, from around 45 euros a year previously.
Prices have actually boiled down ever since as EU countries have actually taken actions to enhance their energy supply, however they stay reasonably high up on a historical basis and are a significant issue for the European economy. European gas rates were trading around 120 euros per megawatt hour Tuesday.
“We are in a high price global reality,” a senior EU authorities, who did not wish to be called due to the conversations still being underway, informed press reportersTuesday The very same authorities included that the summertime’s “excessive” rates “had a significant impact on the European economy and European consumers.”
The possible gas trading limitations are, nevertheless, suggested to be short-term.
A 2nd EU authorities likewise informed press reporters that the commission wishes to do “something meaningful, but not harmful” to the marketplace.
Speaking previously this month, European Commission President Ursula von der Leyen stated: “We should consider a price limitation in relation to the TTF in a way that continues to secure the supply of gas to Europe and to all Member States and that would demonstrate that the EU is not ready to pay whatever price for gas,” according to Reuters.
The commission likewise proposed Tuesday the establishing of a brand-new criteria for trading liquified gas (LNG).
“The TTF is linked to pipeline gas prices, but it is not accurate as most countries use LNG,” the 2nd authorities stated, including that the concept is not to change the present criteria for gas however rather producing a brand-new one that just considers LNG.
The commission stated this brand-new criteria must remain in location next spring, when EU countries will be concentrated on reinforcing their gas storage levels in time for the winter season.
EU presidents are collecting in Brussels Thursday to talk about the brand-new propositions.
Critics have stated the 27 member states are taking too long to deal with the energy crisis collectively. Supporters, nevertheless, argue that the EU has actually taken a variety of significant actions because Russia’s intrusion of Ukraine to enhance its energy security.
The EU utilized to import about 40% of its gas from Russia; that number is now at around 7%.
