A dynamic price cap to be applied in a scenario where there is no shortage of supply and there is an exchange between demand and supply of gas. This is one of the key points of the “Non Paper” signed by Italy, Poland, Greece and Belgium – unofficial document read by ANSA. Based on the “dynamic corridor”: It is possible to set a core value for this corridor and increase it regularly, taking into account external benchmarks (e.g. crude oil prices) and taking into account fluctuations (e.g. 5%) around the core value revise corridor”, says the proposal. The “non-paper” was, as far as we know, distributed in the European institutions in these hours, has been sent to the Commission and will be among the proposals to be discussed by the member countries. The The document provides that the application of this “dynamic corridor” to the price of gas has a “central value that would represent a ceiling that can be assigned to a reference node (such as Ttf) or multiple nodes (Peg , Psv, Zee to avoid arbitrage), or rather, it can cover all transactions (both on-exchange and OTC).Moreover, the non-paper states that “volatility around the central value would be possible to avoid P to give travel signals for gas transport by Member States in case more hubs reach the maximum”.
A cap limited to gas used for electricity “ignores 2/3 of the gas market” and creates “no incentives to lower prices” as importers are compensated for whatever price they pay. We read that in the non-paper – unofficial document – with the gas price cap proposals from Italy, Belgium, Poland and Greece. The text also emphasizes how this solution could create “liability without a clear external limit”, for example because the import price may continue to rise, requiring more resources to maintain the cap.
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