Doubts whether Ireland will benefit from EU plans to overhaul gas market

Irish wholesale gas prices mainly determined by British market prices, based on supplies from the North Sea

There are doubts about whether households and businesses in Ireland, which draws most of its supplies from the North Sea, would automatically benefit from any shake-up.   

The EU continues to debate ways to rein in the prices of continental European wholesale gas, but there are doubts about whether households and businesses in Ireland, which draws most of its supplies from the North Sea, would automatically benefit from any shake-up.   

The European Commission has focused on the workings of the European gas market, known as the Dutch Title Transfer Facility, or TTF, which helps set the prices of the gas used by power generators and other big users, on the continent.  

The TTF market has been in the spotlight after EU Commission president Ursula von der Leyen had suggested wholesale gas prices for delivery through the winter had not taken on board the EU's efforts to minimise its reliance on Russian gas.

TTF market shake-up

However, it remains unclear how any shake-up of the TTF market would affect Irish wholesale gas prices because they are mainly determined by British market prices, based on supplies from the North Sea.                                          

Reuters reported that Greece and four other EU countries made a joint request to the commission to explore two options. 

The EU will unveil proposals next week to launch joint gas buying within months and develop an alternative gas price benchmark to the TTF.

However, EU countries have still to decide whether to include a gas price cap. 

In a letter addressed to the commission on Thursday, energy ministers of Greece, Italy, Belgium, the Netherlands, and Poland proposed amending references to the TTF gas price in contracts. 

• Irish Examiner and Reuters