Photo Source: DOI
Following intense negotiations at the Energy Council that continued in Brussels, EU Energy Ministers reached a deal that can help introduce a market correction mechanism for natural gas, also known as a gas price cap. This market correction mechanism is aimed at establishing the natural gas markets when prices start increasing to excessive levels.
Speaking ahead of the meeting, Minister for the Environment, Miriam Dalli stated that this is a good step forward and highlighted the importance of reaching an agreement needed to calm the markets and stabilise gas prices. Minister Dalli underscored the necessity of this agreement for Malta, as Malta uses gas for energy production.
The agreement aims to trigger the correction mechanism when gas prices start increasing beyond €180 with inbuilt safeguards for suspension and deactivation so as not to endanger the gas market. The price cap agreed and the whole mechanism is expected to result in manageable energy prices on the European continent from where Malta imports its electricity through the Interconnector.
The war on Ukraine has led to exorbitant energy prices, and whilst high energy prices will continue for the following months, the European Union is trying to implement regulations that can, to some extent, control such increases.
Energy Ministers also reached an agreement on two other emergency regulations, one relating to permitting for renewables and another one ensuring solidarity in cases of crisis.
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