EU To Extend Gas Price Brake Beyond TTF Trading Hub From May 1

MOSCOW (UrduPoint News / Sputnik - 01st April, 2023) The European Union will extend its mechanism for limiting gas prices during periods of peak demand from the Dutch Title Transfer Facility (TTF) to all EU trading hubs starting May 1, the EU Directorate-General for Energy said on Friday.

"The European Commission has today adopted technical rules to extend the Market Correction Mechanism (MCM) to derivatives linked to gas trading in all EU hubs," the EU executive said, adding that this would provide "an even broader shield" from high gas prices.

The price brake is triggered whenever the month-ahead price on the market exceeds 180 Euros ($195) per megawatt-hour for three working days and if the price is 35 euros higher than a reference price for liquefied natural gas on global markets for three days.

The mechanism took effect in February and was initially limited to gas futures traded on TTF, a virtual bidding point in the Netherlands. Designed as an emergency measure, it is currently set to expire in January 2024.