The European Commission has proposed a new package of measures aimed at improving stability in European gas markets amid soaring prices and supply issues due to the conflict in Ukraine. The measures notably include the aggregation of the EU demand as well as joint gas purchasing to negotiate better prices and reduce the risk of Member States outbidding each other on the global market, all the while ensuring supply security.
They also plan on creating a new LNG pricing benchmark by March 2023, and in the short-term proposing a price correction mechanism to establish a dynamic price limit to avoid price spikes. In addition, the measures plan to introduce default solidarity rules between Member States in case of supply shortages, extending the solidarity obligation to Member States without direct pipeline connection to involve also those with LNG facilities. This will be accompanied by a proposal to create a mechanism for gas allocation for Member States affected by a regional or Union gas supply emergency.
The Commission also proposes a targeted flexible use of Cohesion Policy funding to tackle the impact of the current energy crisis on citizens and businesses, using up to 10% of the total national allocation for 2014-2020, worth about €40bn.