Greece and six other countries (Belgium, Italy, Poland, Slovenia, Malta and Lithuania) have reiterated their idea for a flexible ceiling with a broader perspective in the joint proposals submitted to the Czech Presidency of the European Union, with the aim of improving the proposal of the European Commission on the imposition of a corrective mechanism to deal with high gas rates.
The seven states discussed two alternative scenarios regarding how they want the gas cap to be applied, looking at either a fixed cap price of 160 euros per megawatt-hour or the “dynamic” cap, which would have a fixed and a variable component, which will take into account the average prices of all the main benchmarks in the US, Europe and Asia.
The Commission’s proposal provided for the imposition of a ceiling on future transactions, amounting to €275/MWh, which would be activated on the condition that the prices of those transactions exceed the ceiling for two consecutive weeks and only if at the same time the difference of the current price and the current LNG rate exceeds €58/MWh for 10 trading days.
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