Gas derivatives markets are back to normal, experts told a public hearing at the European Parliament’s Committee on Economic and Monetary Affairs (ECON) on Monday 27 March. However, this market needs to be reformed in order to preserve the financial stability of the EU.
“By providing central and liquid marketplaces where market participants can no longer anonymously buy and sell from each other, we ensure the highest possible level of fair and orderly competition”, explained Pieter Schuurs, Chairman of the Board ofEuropex, the trade association for energy exchanges.
“As a result, clearing and settlement systems, which have never been exposed to such high price levels, have passed the stress test and continue to operate safely and reliably in these challenging circumstances”, he said.
While he welcomed the European Commission’s proposed revision of the EU electricity market design, he expressed some points of disagreement. In his view, “some crisis-related emergency regulatory interventions undermine the very functioning of these markets, including the market correction mechanism” (see EUROPE 13150/4).
Similarly, Lucas Schmeddes, President and COO of ICE Endex, said that “policymakers must balance the legitimate goals of minimising the negative impacts of high energy prices and maintaining the integrity of the gas market”.
“Open and efficient markets, which show the real price, remain the best and only way to reduce consumption, increase investment in alternative sources and ultimately bring demand and supply back into balance”, he continued.
The experts then discussed with MEPs the tools that could be useful to ensure financial stability.
The European Commission will propose to extend the ‘anti-volatility’ mechanism linked to gas price capping (see EUROPE 13137/8). (Original version in French by Anne Damiani)