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

Summary:

Regulation (EU) 2023/2920 - adopted by the Council of the European Union on 21 December 2023 - introducing amendments to Regulation (EU) 2022/2578 as regards the prolongation of its period of application.

Further information:

Council Regulation (EU) 2022/2578 establishes a temporary Market Correction Mechanism (MCM) for orders placed for trading derivatives linked to the European Union's (EU) virtual trading points (VTPs) with maturities between month-ahead and year-ahead. The MCM therefore applies to any commodity derivative, traded on a regulated market, the underlying of which is a transaction in gas in any VTP in the EU. The mechanism was adopted to tackle a energy supply crisis triggered by Russia's invasion of Ukraine.

The period of application of that Act was originally limited to 30 December 2023. This Regulation extends by one year the period of application of the provisions of Regulation (EU) 2022/2578 in view of the persisting risks for energy supplies in the European Union (EU).

The draft law was adopted by the European Commission on 28 November 2023. The Act was adopted by the Council of the European Union on 21 December 2023 and published in the Official Journal on 29 December 2023.

Official

EUR-LEX: COM(2023)761: Proposal for a Council Regulation amending Regulation (EU) 2022/2578 as regards the prolongation of its period of application https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2023:761:FIN

European Commission: DG Energy: Actions and measures on energy prices https://energy.ec.europa.eu/topics/markets-and-consumers/actions-and-measures-energy-prices_en

General Secretariat of the Council (EU): Policies: Energy prices and security of supply https://www.consilium.europa.eu/en/policies/energy-prices-and-security-of-supply/

European Commission: DG Energy: News, 28/11/2023: Commission prolongs energy emergency measures by 12 months https://energy.ec.europa.eu/news/commission-prolongs-energy-emergency-measures-12-months-2023-11-28_en

Finnish Government: Press Release, 18/12/2023: EU’s Energy Council meeting to extend emergency measures on energy https://valtioneuvosto.fi/en/-//1410877/eu-s-energy-council-meeting-to-extend-emergency-measures-on-energy

Council of the European Union: Press Release, 19/12/2023: Energy prices and security of supply: Council agrees to extend emergency measures https://www.consilium.europa.eu/en/press/press-releases/2023/12/19/energy-prices-and-security-of-supply-council-agrees-to-extend-emergency-measures/

---

News

Reuters, 17/11/2023: EU poised to propose extending energy crisis measures https://www.reuters.com/business/energy/eu-poised-propose-extending-energy-crisis-measures-official-2023-11-17/

Euronews, 19/12/2023: EU energy ministers agree to extend price cap on gas until January 2025 https://www.euronews.com/my-europe/2023/12/19/eu-energy-ministers-agree-to-extend-price-cap-on-gas-until-january-2025

Reuters, 19/12/2023: EU to extend emergency gas price cap for another year https://www.reuters.com/business/energy/eu-extend-emergency-gas-price-cap-another-year-2023-12-19/

---