The European Commission is proposing to EU countries to introduce a “correction mechanism” for gas prices to temporarily apply a maximum price during periods of “exceptionally high prices” on the European gas market.
The ceiling for the European wholesale price should be predefined concerning the cost of liquefied gas (LNG) on the world market and adjusted monthly.
The correction mechanism is activated if the gas price on the leading Amsterdam gas market exceeds the maximum and is automatically deactivated as soon as possible, the committee writes in a plan submitted to the EU ambassadors. She argues that the temporary mechanism should prevent suppliers from selling their gas elsewhere, which would jeopardize supplies in the EU.
EU leaders have asked the executive board of the European Union to come up with legislative proposals to bring down high energy prices. The 27 Member States agree on several measures, such as joint purchasing. But several member states demand a price cap, while some other countries, including the Netherlands, are wary of market intervention.