To protect consumers: in Europe earned the ceiling of prices for Russian gas

The price ceiling is set at the level above the current energy costs to contain speculative tariff growth, protect consumers and keep recession. In the European Union, on Wednesday, February 15, the ceiling of gas prices of 180 euros/megawatt-hour, which is about 2000 euros per 1 thousand cubic meters of gas. The restriction is calculated by February 2024, according to the EU website.

It is noted that the restrictions will be started in automatic mode, if two conditions are met: as long as the mechanism operates, transactions at the corresponding futures for gas at a price higher than the dynamic limit (the indicative price of PPGs in the world markets plus 35 euros) will be prohibited. If the CPG value falls below 145 euros, the dynamic limit will be 145 euros plus 35 euros, ie 180 euros. Such a mechanism will work at least 20 working days from the moment of activation.

If the limit for three days is lower than 180 euros per MW · h, the mechanism will automatically turn off. In addition, the effect of the ceiling of prices is automatically canceled if: Recall that the price threshold for gas in the EU was agreed in December 2022. At the same time, about 12 countries, including Belgium, Poland and Greece, have been in favor of gas prices below 200 euros/MVTGODs to cope with high energy prices.

At the same time, Germany, the Netherlands and Austria insisted on the higher price threshold. They feared that restrictions would reduce gas supply. Focus also wrote that since December 5, 2022, an oil embargo has been operating for the supply of Russian oil to Europe. The price of oil from the Russian Federation was limited to about 60 dollars per barrel. Meanwhile, the volume of trade restrictions within the tenth package of European Union sanctions against Russia will be € 11 billion.