“The intrigue remains”: what prevents Europe from setting a gas price ceiling

Alexey Belogoryev, Deputy Principal Director on Energy Studies of the Institute for Energy and Finance, commented to Forbes on the background of the split between the EU countries on the issue of introducing a "price ceiling" on TTF.

The introduction of price limits for TTF will be tantamount to a blow to the very core of the gas market, Alexey Belogoryev believes.

“In fact, this recognizes that the market model of pricing on hubs, which has been promoted in Europe for 20 years as the most perfect, in practice turned out to be very flawed and requires “manual” regulation,” the expert says. “Naturally, this causes a split between EU members.” Even the threat of imposing price limits on TTF itself, Belogoryev believes, can deprive the price indices on this exchange of representativeness in reflecting the balance of supply and demand in Europe, which will lead to a drop in trading on it.