It still goes down gas price after the agreement on the ceiling within the EU: in Amsterdam the quotation is 105 euro megawatt hour – which yesterday had already lost 6% to 103,75 euro after the news – a third against the August peak of over 300 euro. But how does the price cap work? on the gas? And what effect will it have on bills?
After months of negotiations, the European Union's energy ministers have finally found an understanding to tame the energy crisis. And they did so with a qualified majority vote and the opposition of Hungary, while the Netherlands and Austria abstained.
Among the countries that have opposed the negotiations for months, he instead gave the ok Germany. To convince her the reopening of the “file on the authorization of renewable”, explained Czech Industry Minister Sikela , “with the aim of enabling their faster implementation in view of the goal of reaching at least 40% of energy consumption from renewable sources by 2030".
Gas price cap: what it is and how it works
To protect the attractiveness of the energy market continental and prevent the escape of supplies out of Europe has been fixed a price cap on gas but not only: the TTF price gas in Amsterdam must be 35 euros per megawatt hour above the global price liquefied natural gas for the tool to activate. What does it mean?
It is not enough for the gas price to exceed 180 euro megawatt hour, but there are two other conditions for the mechanism to be activated: the monthly TTF price must exceed this threshold three working days – far lower than the limit of 275 euros/MWh originally proposed by the European Commission – and at the same time be at least 35 euros higher than the reference price of LNG on global markets.
The mechanism will enter into force from the 15 February 2023 and it will be automatic. Once activated, the cap will apply for at least 20 working days and if it is less than 180 euro megawatt-hour for the last three consecutive working days, it will be Off automatically. But at any time, if the EU Commission declares an EU or regional emergency under the security of supply regulation, especially in a situation where the gas supply is insufficient (rationing) or if the demand for gas increases by 15% in one month or 10% in two months, the cap will be suspended.
When the gas will reach this “dynamic” roof futures trading above this threshold will no longer be permitted.
It will be up to the Agency for the Cooperation of Energy Regulators (Acer) monitor the market correction mechanism, and in the event of an emergency in the security of supply, it will be able to deactivate the cap instantly.
Price cap: doubts about the effects of the cap
on roof effects al gas price there is some skepticism. Some experts don't think the measure will have the lowering effect energy bills, others instead think that it will be of little use.
The aim should be to avoid cost increases in the bill, but its final version is weaker than the one proposed by the Draghi government, which planned to apply it regardless of market trends.
Stefano Besseghini, president of Arera, the gas price cap will not lead to a drop in prices. “I believe that at the moment the weather conditions can have a much greater influence – he said in an interview with Repubblica-. Prices before the EU decisions were starting to rise because the cold had arrived. But between now and the end of the year the forecasts are good and the temperatures help us to consume less”. Even the president of Assolombarda, Alessandro Spada, showed little enthusiasm: "it is good that there has been an agreement" on the price cap "but the price remains very high for companies".
