EU TTF price cap proposals stoke alarm
The bloc’s plans are intended to shield consumers from high gas prices but have been criticised as unlikely to benefit end-users and for posing significant additional risks
Market participants have warned of unintended consequences for risk management and security of supply stemming from EU proposals to cap front-month TTF gas prices at €275/MWh ($290/MWh). The plans have also faced stiff criticism from some politicians, warning the suggested price ceiling is too high to protect end-users. The EU has proposed the “gas market correction mechanism” as a temporary measure, but the bloc’s energy ministers have yet to come to an agreement. “Many [ministers] supported the objectives of the proposals,” an energy council statement confirms, “while indicating that the conditions for activating the mechanism were too strict”—specifically that a €275/MWh ceiling is too hi
Also in this section
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing
26 April 2024
Slowing demand growth and capacity expansions will squeeze refiners in coming years
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields