The European Commission has proposed another set of emergency measures to tackle high energy prices and low fuel supply affecting Europe since Russia cut gas flows.
The measures did not include an immediate gas price cap, instead proposed the setting of a temporary “maximum dynamic price” on trades at the Title Transfer Facility (TTF) Dutch gas hub, which serves as a benchmark price for European gas trading, Reuters reported.
If agreed, the proposals would also see the creation of a joint gas-buying scheme requiring EU countries to jointly purchase 15% of the volume needed to fill gas storage by November 2023.
Russia's war on Ukraine has triggered an energy crisis
— Ursula von der Leyen (@vonderleyen) October 18, 2022
We have been working hard to protect Europe against the fall-out on the energy markets.
We are now better prepared to face this winter
And in a position to make more steps towards an Energy Union ↓ https://t.co/AEliBAOlr8
“We know that we are strong when we act together… The member states and the energy companies should leverage their joint purchasing power,” European Commission President Ursula von der Leyen said.
The measures would also redirect nearly 40 billion euros of unspent EU budget funds to help vulnerable citizens and businesses affected by high energy prices.
The proposals, which are to be discussed by leaders at a summit on Thursday and Friday, have been welcomed by the Prime Minister of Greece, Kyriakos Mitsotakis.
In a tweet posted this morning, he wrote: “I welcome the comprehensive package proposed by the President of the European Commission, Ursula von der Leyen and especially the inclusion of two proposals Greece has long called for: a price correction mechanism at TTF and circuit breakers in energy derivative markets.”
I welcome the comprehensive package proposed by the President of the European Commission @vonderleyen and especially the inclusion of two proposals Greece has long called for: a price correction mechanism at TTF and circuit breakers in energy derivative markets.
— Prime Minister GR (@PrimeministerGR) October 18, 2022
In a subsequent tweet, he added: “The upcoming European Council is an opportunity to reestablish control over our energy markets by placing a limit on prices and reducing extreme volatility.”
“This can be a decisive step in our effort to lower energy prices for European citizens and businesses.”
READ MORE: EU greenlights €800 million Greek scheme to support non-household electricity consumers
