The European executive’s draft specifies that this temporary gas price correction mechanism aims to prevent a price spike comparable to that observed last summer, when the price of the one-month TTF (Title Transfer Facility) contract, l he Dutch benchmark for the gas market across the European Union (EU) approached 314 euros per megawatt hour (MWh).
“We are proposing to set a cap on the price of TTF gas to protect our populations and our businesses from price increases.
extreme prices”said Energy Commissioner Kadri Simson. “The mechanism is carefully designed to be effective without jeopardizing our security of supply, the functioning of energy markets in the EU and financial stability”, he added.
