Brussels is planning to propose an emergency mechanism to curb the price of gas when it reaches extreme levels, as the EU seeks to get a grip on the bloc’s energy crisis.
According to a draft European Commission proposal, the EU should be able to set a maximum “dynamic price” at which gas transactions can take place on the Dutch Title Transfer Facility, a benchmark for gas traded in the bloc.
The aim was to empower the EU to intervene in cases of extreme natural gas prices while not hurting the security of supply or encouraging consumption, the draft said, adding that any emergency ceiling should only last three months.
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