EC proposal on gas price cap is a 'joke' says Polish climate minister
Poland's climate minister has described a European Commission proposal on a cap on the price of imported natural gas "a joke."
On Tuesday, the European Commission (EC) proposed implementing a "safety price ceiling of EUR 275 on month ahead TTF derivatives."
According to the EC, the TTF (Title Transfer Facility) is the EU's most commonly used gas price benchmark, and it plays a key role in the European wholesale gas market. Under the proposal the mechanism would only be triggered automatically if "the front-month TTF derivate settlement price exceeds EUR 275 for two weeks, and TTF prices are EUR58 higher than the LNG reference price for 10 consecutive trading days within the two weeks."
Reacting to the proposal, Anna Moskwa, Poland’s climate and environment minister, said: "We treat this proposal from the day before yesterday as a joke...It is difficult to approach it seriously."
Asked by reporters about the main disadvantages of the EC proposal, she said that it was presented at the "last minute" and "totally differs from what the member states presented."
"The price proposed there is unacceptable. It is higher than today's prices on the market...I don't know if there is anyone today who would be able to support this proposal. It seems to me that no one will," Moskwa said.
She added that she believes that most of the countries that prepared their proposals on the maximum gas price months ago will share Poland’s opinion.
"We expect that we will be taken seriously," Moskwa added.
According to her, "there is no room for interpretation, no discussion."
"Today is another test whether the European Commission will stand on the side of most European countries and on the side of citizens who are already experiencing winter, or will it continue to conduct secret negotiations with Germany," Moskwa said.