Brussels, 12 January 2018 | As a point of departure, the study names the “alleged” main weaknesses of the European gas market, pointing to price differences between countries/zones. These are explained as being a result of existing long-term supply contracts and an increasing dependency on extra-EU supplies. We are convinced that the goal of any future market design should not be to focus on price levels or to artificially align gas prices by regulatory intervention, but rather to design the market in such a way that an efficient price equilibrium is reached throughout the EU. And in such an equilibrium, prices between market areas can differ.
Please read the full paper below.