EU says approves temporary floating gas price limit

MOSCOW, Dec 23 (PRIME) -- The E.U. has finally adopted a temporary mechanism of gas market adjustment with a floating price limit, the European Council said in a statement late on Thursday.

“The Council formally adopted a regulation that sets a market correction mechanism to protect citizens and the economy against excessively high prices. The regulation aims to limit episodes of excessive gas prices in the E.U. that do not reflect world market prices, while ensuring security of energy supply and the stability of financial markets,” the statement read.

Earlier this week, the E.U. energy ministers agreed to limit the gas prices at 180 euros per megawatt-hour (MWh). The E.U. Council released a statement saying that the mechanism was to be launched on February 15, 2023, if the monthly futures for the TTF index exceed 180 euros per MWh, and its spread to the liquefied natural gas (LNG) price exceeds 35 euros.

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