The imposition of a cap on the price of gas traded in the EU is increasingly the focus of the policy debate in Europe. In a previous Policy Brief, we outlined a possible approach to contain the price of gas in the EU, while safeguarding security of supply as much as possible. In this Policy Brief we explore two aspects related to the measures outlined in the previous one: (i) How would the gas imported as LNG by the TSOs or the Single Buyer entity be allocated to the different TSOs/Member States? (ii) How would the additional costs of importing LNG with respect to the price cap for pipeline gas in the EU be recovered? In the proposed mechanism, the gas volumes to be procured through the LNG auctions would be determined by aggregating the requests of the different TSOs. Therefore, at least as a first approximation, the allocations of the procured LNG volumes to the different TSOs could be based on their respective requests. We also explore additional aspects which would need to be considered if we move beyond this first approximation. We also propose that the additional costs of importing LNG with respect to the price cap for pipeline gas in the EU be recovered through an uplift charged on final consumption. We propose different approaches in terms of uplift levels and the base on which it is charged and we compare them with respect to two criteria: revenue adequacy and the ability to provide the correct price signals to consumers to promote efficient demand reduction.
The Brief explores pathways to promote a sustainable agricultural trade regime for the EU. We identify three challenges and propose three potential paths forward. We discuss potential implications of the [...]
The rewable energy resources within EU27 are highly dominated by wind and solar energy delivering electricity as output. As electrification is the most efficient way to deliver the energy services [...]
Manufacturing firms in the EU face the double challenge of decarbonisation and (international) competitive pressure. Based on the key findings of the 2024 EIB investment survey and considering the economic [...]
Regulation 1370/2007, as amended by the Fourth Railway Package, set the date of 25 December 2023 for the opening to competition of services subject to public service obligations. As opposed [...]
This policy brief contends that a new approach to Long Term Contracts (LTCs) in European competition policy based on new facts, new realities and a revised reasoning must be urgently [...]
In the North Seas region, a coalition of 9 countries expressed the ambition to quadruple their offshore wind capacity from 30 GW to 120 GW by 2030, and to then [...]
Join our community
To meet, discuss and learn in the channel that suits you best.
We use cookies to help personalise content and provide a better experience. By clicking Accept all, you agree to this, as outlined in our Cookie Policy. To change preferences or withdraw consent, please update your Cookie Preferences.