Later this week, the European Commission will outline its proposal for a temporary cap on gas prices - known as the ‘market correction mechanism’ - and a legislative proposal “swiftly afterwards”, EU Commissioner for Energy Kadri Simson said on Twitter on Friday 11 November.
The tweet follows a joint letter from Commission President Ursula von der Leyen and Czech Prime Minister Petr Fiala - whose country currently holds the rotating Presidency of the EU Council - in response to criticism from some Member States and European Council President Charles Michel.
In the European Parliament on Wednesday 9 November, he called for new legislative proposals so that Member States can move forward on the idea of temporarily capping gas prices used for electricity generation, warning against “too little, too late” (see EUROPE 13061/16).
The letter from Ms von der Leyen and Mr Fiala states that the Commission will put forward a “a detailed outline of proposal for a market correction mechanism” before the next meeting of Member States’ energy ministers on Thursday 24 November.
“The EU needs to have a mechanism in place that limits episode of excessive gas prices such as those that we have known in August”, the letter also stresses, while acknowledging that there are still differences in Member States’ assessment of the impacts, benefits and risks of such a mechanism.
This mechanism is part of a series of emergency measures suggested by the Commission on Tuesday 18 October (see EUROPE 13045/1) in a proposal for a Council Regulation. The text, which is currently being discussed by Member States (see EUROPE 13061/16), provides a mandate for the Commission to present a proposal to introduce a ‘market correction mechanism’.
The letter further states that the Commission will provide an update on its work on structural reform of the electricity market to the 27 Member State leaders on 15-16 December at the next European Council, with a view to a legislative proposal early next year.
See the letter: https://aeur.eu/f/41j (Original version in French by Damien Genicot)