The power agency of the European Union (EU) reported that the plan to impose a ceiling price on natural gas has no effect on power markets now.
EU Power Regulators Cooperation Agency (ACER) has published its preliminary report on the effects of the “gas market correction mechanism” for capping natural gas on EU power markets and power supply.
In the report, it was reminded that the natural gas ceiling price regulation set up a mechanism to protect the citizens and the economy against very high gas prices, and this limits the reasonable financial derivatives traded in the Union Stock Exchanges in order to limit gas prices in EU countries.
“No positive or negative effects detected”
Pointing out that the planned ceiling price has not had an impact on the EU gas markets to date, the report states that ACER has not identified any valuable positive or negative effects that can be clearly and directly associated with the system.
Reminding that the system will come into effect at a time when natural gas prices are very low compared to the second half of 2022, it was noted in the report that ACER could not conclude that the market dynamics in the first weeks of 2023 had a direct or indirect effect on the approval of the ceiling price regulation.
In the report, where it was mentioned that the mechanism may have effects on financial and power markets in the future, it was stated that ACER and the European Securities and Markets Authority (ESMA) will continue to monitor market developments.
It will enter into force on 15 Feb.
EU countries agreed in December that a correction system known as the “ceiling price” for gas prices in the markets would come into effect on February 15th.
The ceiling price is that the future gas contract, which is under process at TTF, the Netherlands-based virtual natural gas trading point with the most depth in Europe, exceeds 180 euros for 3 working days, and the megawatt-hour price of liquefied natural gas (LNG) in Europe is 35 euros above the global markets. case will come into effect.
On the other hand, the gas futures contract price, which is under process in the TTF, went up to 340 euros per megawatt-hour in August, while it is trading at 61.5 euros today.
