EU's Price Correction Mechanism to Help Fill Gas Storages in 2023 – Energy Commissioner

MOSCOW (Sputnik) - The European Union's gas price correction mechanism will help its members fill their storing facilities ahead of next winter, which might become problematic, European Energy Commissioner Kadri Simson said.

EU energy ministers agreed on Monday a gas price ceiling of 180 euros ($191) per megawatt-hour under the market correction mechanism.

"With such a mechanism in place Europe will be better prepared for the next winter season and for the new round of storage filling which will be more challenging that it has been this year," Simson said.

She also noted that thanks to the "intense" negotiating process, the EU managed to achieve a political agreement, which would allow it to protect financial stability of the bloc and establish efficient safeguards necessary for its energy security.

She added that despite the fact that the newly agreed price cap was lower than the Commission’s initial proposal it still contained all "essential characteristics of a market correction tool."

The mechanism will apply starting February 15, 2023, and will be monitored by the Agency for the Cooperation of Energy Regulators (ACER).

The European Commission proposed in November a "safety ceiling" of 275 euros for gas futures on the TTF, Europe’s main trading hub for natural resources. The commission's proposal instantly created divisions between EU members, with some saying it was too high and ineffective.