Czech Minister of Industry and Trade Jozef Sikela (pictured) revealed on Monday, that the adopted price ceiling on gas, which is set €180 per megawatt-hour (MWh), will not be a "fixed price cap" but "rather a dynamic one."
Sikela explained that the gas price could still go above the agreed price ceiling on the liquefied natural gas (LNG) market, noting that the machanism will ensure that the prices do not "skyrocket" over the actual LNG reference price plus a €35 premium. The cap will apply to "month-ahead, three-month-ahead and year-ahead Dutch TTF contracts."
The minister underlined that the proposal also aimed to make sure that the implemented framework would not "jeopardize the security of supply or stability of the financial markets in the European Union," adding that the mechanism could be automatically deactivated in the event that the European Commission declares an emergency and increased gas consumption.
