EU Energy Council to decide on a price ceiling for gas

The EU energy ministers will meet at an extraordinary Council meeting in Brussels on 13 December 2022.

The only item on the agenda is the European Commission’s proposal of 22 November for a Council regulation establishing a market correction mechanism to protect citizens and the economy against excessively high gas prices.

Ann-Mari Kemell, State Secretary to Minister of Economic Affairs Mika Lintilä, will represent Finland at the meeting. The next Energy Council meeting will take place in Brussels already on 19 December. In that meeting, Minister Lintilä will represent Finland.

The aim of the meeting on 13 December is to reach a political agreement on the market correction mechanism. Finland stresses the need for unity among the Member States, rapid decision-making and the ability to compromise. 

The proposed regulation is based on the measures called for by the European Council in October, which would set a price ceiling for gas used in electricity production. 

Key issues to be discussed by the ministers include the market conditions related to the activation of a price ceiling, its level and the criteria for suspending it. The market correction mechanism would set a temporary dynamic ceiling on the price of derivatives traded on the Title Transfer Facility (TTF), which is Europe’s most important gas trading platform. The price ceiling would apply to certain derivative products on the TTF exchange.

The negotiations between civil servants in the Member States have focused in particular on how the price ceiling should be calculated and what conditions would apply to the use of the market correction mechanism. 

Council to adopt regulations on gas solidarity and simplified permits on renewable energy

The ministers will also formally adopt a regulation on enhancing solidarity in gas purchases and a regulation to speed up permit procedures for renewable energy. The Energy Council reached a general approach on these regulations at their previous extraordinary meeting on 24 November, but it wants to adopt them formally together with the regulation on the gas price ceiling. 

The solidarity regulation contains rules on joint purchasing, management of gas price volatility and cross-border solidarity measures in exceptional situations. 

The renewable energy regulation contains temporary measures to accelerate permit procedures for renewable energy investments. Quicker introduction of renewable fuels will help the EU phase out Russian fossil fuels and alleviate the high energy prices. 

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