The Mitsotakis message at the Summit: To restore control in the energy markets

The Prime Minister is visiting the Brussels Summit, which is focused on dealing with the energy crisis, today Thursday Kyriakos Mitsotakis.

At the European Council meeting, the prime minister will send a message to his counterparts that the EU must send a clear, unified message to the energy markets how it will protect its citizens and its businesses from extreme price fluctuations and how it is required to act decisively, now having in its arsenal a mechanism that will establish a limit on the price of natural gas.

The government considers the set of proposals presented by the European Commission to be positive, an important step in the direction of the European response to the problem, which requires a comprehensive response, as Kyriakos Mitsotakis had underlined in March with his letter, which included a six-point plan, to the Commission President Ursula von der Leyen.

The Prime Minister will be in favor of the European Commission’s package of proposals to proceed to the implementation stage, once approved by the Council of Energy Ministers, in order to finalize the technical details of the price correction mechanism.

The fact that the price of natural gas is falling is partly related to that the debate in the EU on the price cap remains open, emphasizes Maximus.

At the Maximos Palace they remind that after the proposals were made public, Mr. Mitsotakis said “I welcome the proposal of the president of the European Commission with a comprehensive package that includes two proposals that Greece had made a long time ago: a price correction mechanism in the TTF and a limitation of fluctuations in energy derivatives markets. The upcoming European Council is an opportunity to restore control over energy markets setting a limit on prices and reducing extreme fluctuations. This could be a decisive step in our quest to lower energy prices for European citizens and businesses.”

They also point out that the first point of the proposed package based on the Greek proposal to impose a ceiling on the wholesale price of natural gas concerns the proposal for a price correction mechanism on the TTF energy exchange, a reference point for energy transactions, so that households and businesses do not are affected by excessive price fluctuations. Already in March, Kyriakos Mitsotakis underlined how these fluctuations constitute a market distortiondo not respond to supply and demand.
Government sources consider that this is the essence of the proposal made by Kyriakos Mitsotakis in his letter to the president of the European Commission, proposing the imposition of a ceiling, which was reinstated at the initiative of other leaders and has secured support from several member states.

The Commission will request an order to draw up a new regulation, which will allow it to set up a price correction mechanism, to impose a dynamic price limit (ceiling) for transactions on the TTF for a certain period of time. As he characteristically stated: “The price correction mechanism will establish, on a temporary basis, a dynamic price limit for transactions on the TTF. Trades at a price higher than the dynamic limit will not be allowed to take place on the TTF.”

Government sources add that the second point based on a Greek proposal (also included in the prime minister’s six-point plan) concerns dealing with excessive volatility in the markets. This is a mechanism for normalizing, through a temporary mechanism, the daily volatility of prices, to prevent extreme changes within a short period of time (“circuit breaker”). The purpose is to limit the large short-term price changes in the electricity and natural gas derivatives exchanges.

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