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EU Gas Price Cap Extended To Other EU Trading Hubs

NATURAL GAS

The EU's gas market correction mechanism, or EU gas price cap, now applies to trading hubs other than the Dutch TTF after an implementing act adopted at the end of March came into effect on May 1.

  • The implementing act adopted March 31 set out the technical details regarding the application of the mechanism to derivatives linked to other virtual trading points in the EU.
  • Having the mechanism apply to more VTPs than just the TTF provided "an even broader shield from high and volatile gas prices," the European Commission said.
  • The original market correction mechanism came into effect on 15 Feb.

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