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Price cap at 180 euros, agreed in the EU

2022-12-19T20:17:14.555Z


Meloni: 'Italy's victory'. There is yes of Berlin, Hungary against. Moscow thunders: 'we will react' (ANSA)


Black smoke was a luxury that this time Europe could not afford: the EU agreement on the gas price cap arrives at the last mile.

A ceiling of 180 euros, which can be activated for twenty days, starting next February.

It is an agreement that not everyone, until a handful of weeks ago, would have wanted.

And that since last March has seen the Italian government in the trenches.

"It is Italy's victory", exulted in unison Giorgia Meloni in Rome and the Minister for the Environment and Energy Security Gilberto Pichetto Fratin in Brussels.

The agreement could also hit Moscow's coffers.

"It is an unacceptable agreement that creates distortion in the market, we will react", Kremlin spokesman Dmitri Peskov thundered not by chance.

The agreement reached the last Energy Affairs Council available for 2022. Last week the European leaders were clear: the energy package - which also includes the common platform for gas purchases and solidarity between member countries in the event of supply emergency - needs to be finalised.

Halfway through the meeting, the latest compromise proposal from the Czech presidency arrived on the table, which read as follows: ceiling on the cost of gas if the wholesale price exceeds 180 euros per MWh for three working days and will be 35 euros higher than the of LNG on global markets.

The cap refers to the TTF, or the Amsterdam Stock Exchange.

Once activated no transactions in natural gas futures that fall within the scope of the "ceiling" above a so-called "dynamic supply cap" are allowed.

The agreement includes the hypothesis that it can also be applied to off-exchange transactions.

The market correction mechanism is monitored by Acer.

In the event of a security of supply emergency, the cap can be deactivated immediately.

Acer.

In the event of a security of supply emergency, the cap can be deactivated immediately.

Acer.

In the event of a security of supply emergency, the cap can be deactivated immediately.

"The EU will be better prepared for the upcoming winter season and for the new stock-filling round", underlined EU Energy Commissioner Kadri Simson.

The objective of the Commission but also of the Czech presidency was to achieve the broadest possible consensus.

It didn't happen.

Austria and the Netherlands abstained.

Hungary voted against.

The political agreement was reached by qualified majority: the so-called written procedure will formalize the agreement on the ceiling and on the entire energy package.

Foreign Minister Peter Szijjarto left the meeting early by launching yet another Orban arrow against Brussels.

"We will be free about any changes to the contract for gas supplies with Russia, without notifying the Commission," he stressed.

"The will to keep the EU united has prevailed", underlined Pichetto, explaining how the cap is "the first step to calm the bills".

And outlining Italy's next energy objective in the EU: the decoupling of the price of electricity from that of gas, a plan that the Commission should complete by March.

In Italy, the agreement was transversally welcomed.

The Minister for EU Affairs Raffaele Fitto recalled the mediation work done by Meloni at the last European Council.

The premier did not forget to also thank Mario Draghi, who on March 9 had made the proposal to Ursula von der Leyen, long targeted for the slowness with which she moved.

At the end of the day, the Amsterdam Stock Exchange closed down 6% at 108 euros per megawatt hour.

Czech minister Jozef Sikela showed up with a white and blue sweatshirt and the inscription "We will convene all the necessary Energy Councils".

For once, he will be able to avoid it.

"I am very happy to be able to take out the bottles that I had put in the fridge", he exulted with the reporters.

Source: ansa

All news articles on 2022-12-19

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