In a letter sent to the President of the European Commission, Ursula von der Leyen, Executive Vice-President Teresa Ribera, and the Commissioner for Energy Dan Jørgensen, 37 MEPs from the S&D, ECR, Greens/EFA and The Left groups called on Monday 20 January for an “urgent” proposal to extend the market correction mechanism (MCM) setting a cap on gas prices.
Recently, the European Commission reaffirmed its intention not to extend this mechanism beyond 31 January 2025 (see EUROPE 13552/5), which was set up during the energy crisis to limit wholesale gas prices to €180/MWh (see EUROPE 13317/1).
However, the signatories claim that, with the end of the agreement for the transit of Russian gas via Ukraine on 31 December (see EUROPE 13556/25), “the European Union risks being victim again of speculation in gas markets and experience a dramatic increase in gas prices”, with spot prices recorded on the TTF exchange exceeding €50/MWh for the first time since 2023.
In addition, EU gas storage levels are lower than the average for the last five years (see EUROPE 13558/11). The 37 MEPs therefore expect that “gas storage levels will be extremely low at the end of the heating season” and are calling for “significant efforts to meet the 90% target foreseen in EU legislation, driving prices up”.
As well as calling for the renewal of the MCM, MEPs urge the Commission to assess whether the €180/MWh cap is still appropriate and, if not, to lower it. Finally, they call for a study exploring legislative options to decouple gas prices from electricity prices.
To see the letter: https://aeur.eu/f/f44 (Original version in French by Pauline Denys)