The EU Commission has drafted a proposal for a so-called “price cap” for natural gas derivative contracts at the TTF exchange in Amsterdam, setting the cap at €275/MWh. In itself, this is 20 times the price of gas in 2020, before the speculation-driven spike started.
But there’s a catch: This cap would not be activated unless the future prices both stay higher than the price cap for two weeks in a row, and are €58 higher than the average price of LNG on the market. Take that, speculators!
The proposal shall be examined by EU energy ministers on Nov. 24. But the only adequate answer to such a gas proposal is a resounding raspberry or Bronx cheer.
