EU energy ministers will reconvene before Christmas – most likely on December 13 – for the next emergency Energy Council amid widespread disapproval of Brussels’ gas price cap proposal.
Ministers meeting for an Energy Council in Brussels on Thursday reached an informal agreement on the less controversial elements of the Commission’s energy crisis package, four EU diplomats said, but did not agree on a way forward on the so-called Market Adjustment Mechanism.
The bloc of countries most vocally opposed to the commission’s proposal – Belgium, Spain, Italy, Poland and Greece – have said they will not formally agree to a broader package until the gas price cap issue is resolved, two diplomats said.
This requires another emergency Energy Council of three diplomats He said it is scheduled for December 13 – allowing any deal to be signed by EU leaders who will meet on December 15 and 16.
The Commission’s proposed Market Correction Mechanism would impose a pre-month price cap on the TTF, the EU’s main trading point, but only if prices exceed €275 per megawatt hour for two weeks, and those prices are €58 above global liquidated prices. 10-day price of natural gas (LNG).
The plan was condemned by both sides of the debate. Countries in favor of the cap said it was never intended to be used; skeptical countries said the proposal risks undermining the bloc’s financial stability.
Ministers have informally agreed on an energy crisis solidarity package, which includes the Commission’s plans to speed up the approval of renewable energy projects and joint gas procurement plans, solidarity measures to ensure the exchange of gas supplies within the EU and a new price benchmark for LNG.