Council Regulation (EU) 2023/2920 amending Regulation (EU) 2022/2578 as regards the prolongation of its period of application

New Council Regulation (EU) 2023/2920 amending Regulation (EU) 2022/2578 concerning the extension of latter’s application was published in the Official Journal (OJ) of the EU. Regulation (EU) 2022/2578 establishes a temporary market correction mechanism (MCM) for trading derivatives linked to the Union’s virtual trading points (VTPs) in the context of gas trading. Specifically, the 2022 regulation addresses the challenges posed by severe difficulties in the energy supply, particularly related to gas shortages and high prices, impacting the Union’s economy and citizens. It thereby sets a limit on VTP bidding prices for gas contract derivatives once a triggering threshold in terms of price has been reached.
Due to ongoing challenges in the global gas market particularly caused by geopolitical tensions affecting supply and volatility in gas prices, the EU extends the application of the MCM up to January 31, 2025. The current expiration date is set to January 31, 2024.