EU proposes mechanism to tackle energy crisis
(VOVWORLD) - The European Commission (EC) proposed a temporary mechanism on Tuesday to set emergency cap on gas prices this winter as part of a new package to deal with the current energy crisis.
 The pipeline system at the OGE station in Germany, one of the largest gas transit stations in Europe. (Photo: AFP/VNA)
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The proposed mechanism will act as a tool to cope with unusual fluctuations in the market.
The EU will impose a dynamic cap on transactions on the Dutch Title Transfer Facility (TTF), which determines gas prices within the EU. The EC believes a longer-term solution is to introduce an additional price index to shape liquefied natural gas (LNG) prices and reflect new conditions in the EU market.
The EC said in a statement that the package is intended to prevent price spikes and price manipulations, create more transparency and stability in the market, and ensure fair prices and gas circulation in the context of crisis.