The reason for the increase in the gas price limit in winter is the impact of the war between Israel and Hamas and potential acts of sabotage on the gas infrastructure.
The gas price limit may be increased
The EU is considering extending the emergency gas price limit introduced earlier this year.
This is reported by the Financial Times concerning the European Commission's presentation to the EU countries' diplomats.
The European Commission said there has been "no sign of any negative effects" since the measure came into force and that gas prices are now almost 90% lower than last year.
The damaged Balticconnector gas pipeline will be put into operation again no earlier than April 2024
The price cap was introduced after weeks of intense debate among member states, with Germany and Austria initially opposed, arguing it would distort markets and exacerbate supply shortages.
But, as stated in the presentation of the European Commission, the restriction did not affect the import of gas to the EU.
High-ranking EU diplomats and officials told the publication that despite falling energy prices and record-high gas stocks in EU storage, supplies this winter could be affected by the war between Israel and Hamas and potential acts of sabotage on gas infrastructure.
We don't know what will happen this year. We have the situation in Israel, and we do not know how it will affect imports from the Middle East, one of the EU diplomats said.
They added that the gas pipeline in the Baltic Sea, which was damaged earlier this month, was also a concern and "it would be good to have insurance".
At the height of the energy crisis caused by Moscow cutting off gas supplies to Europe after a full-scale invasion of Ukraine in 2022, prices reached more than €300 per MWh, but not for long.
Member states eventually agreed that the cap would kick in if electricity prices exceeded €180 per megawatt-hour for three consecutive days.
The Council of the European Union formally adopted a regulation establishing a market correction mechanism to protect citizens and the economy from excessively high prices last December.
Damage to the gas pipeline is being investigated in Finland
During the investigation of damage to the Balticconnector gas pipeline, which connects the country with Estonia, the Finnish police found a heavy object in the sea. A Chinese ship passing by the place of damage also came under suspicion.
The director general of the investigation, Crime Commissioner Risto Lohi, said the study confirmed that an external mechanical force caused the damage. However, the police do not suspect that an explosion caused the damage.
In addition, according to the police, a piece of fresh soil, which contained some weighty objects, was found on the seabed during the investigation.
Now we are finding out what kind of object it is and whether it is connected with the damage to the pipe, Lohi says.
