The EU Commission is proposing a market correction mechanism for the gas trading market limited to one year. This would automatically take effect from January 2023 if the Amsterdam benchmark index TTF exceeded the threshold of EUR 275 per megawatt hour for two weeks and at the same time was at least EUR 58 above the European price of liquefied natural gas. The price cap should only apply to contracts relating to deliveries agreed one month in advance. Trade over short-term or longer periods is not affected. EC’s Energy Commissioner Ms Kadri Simson said that this is not a regulatory7 intervention to set the price on the gas market at an artificially low level; rather, it is a last resort solution to prevent episodes of excessively high prices which are not in line with global price trends. She added “This is not a silver bullet that mil bring gas prices down. But it provides a powerful tool that we can use when we need it, complementing our more structural efforts to lower prices, namely by controlling our demand and ensuring sufficient gas supply for Europe through joint purchasing and active external energy policy.”The proposals will be debated by energy ministers from the bloc's 27 member countries on 24 November.However, the Association of European Energy7 Exchanges said that the mechanism poses a serious threat to the region's security of supply and financial stability, and will do little to achieve the goal of lowering energy costs.The introduction of an electricity and gas price cap has been discussed in the EU for months, but this instrument has not yet been decided. Belgium, Greece, Italy and Poland would threaten to block other energy laws if the EU Commission does not propose a price cap for gas. The topic will probably be discussed again at the next meeting of energy ministers on 24 November in Brussels.The mechanism could temporarily contain price spikes. In principle, the EU Commission considers the proposals presented in October to reduce prices, such as joint gas purchasing and the acceleration of approval procedures for the expansion of renewable energies, to be more suitable.