Implementation questions regarding the Market Correction Mechanism (Council Regulation 2022/2578) – a Eurelectric Paper

Questions

How exactly should this reference price calculation be made? Will it be an average of all products, a weighted average by geography, by term, by volume? Or another type of calculation?

Art 2 – Definitions

6. ‘reference price’ means, insofar as available, the daily average price of:

• The LNG Northwest Europe Marker price assessment defined as the daily average of ‘Daily Spot Northwest Europe Marker (NWE)’ administered by Platts Benchmark B.V. (the Netherlands) and the ‘Northwest Europe des – half-month 2’ administered by Argus Benchmark Administration B.V. (the Netherlands); with a conversion of LNG price assessments in USD per Metric Million British Thermal Units (MMBtu) into EUR per MWh, on the basis of the European Central Bank’s (‘ECB’) Euro foreign exchange rate and a conversion rate of 1 MMBtu to 0.293071 kWh;
• The LNG Mediterranean Marker price assessment defined as the daily average of ‘Daily Spot Mediterranean Marker (MED)’ administered by Platts Benchmark B.V. (the Netherlands), and of the daily average of ‘Iberian peninsula des – half-month 2’, ‘Italy des – half-month 2’ and ‘Greece des – half-month 2’ administered by Argus Benchmark Administration B.V. (the Netherlands); with a conversion of LNG price assessments in USD per MMBtu into EUR per MWh, on the basis of the ECB’s Euro foreign exchange rate and a conversion rate of 1 MMBtu to 0.293071 kWh;
• The LNG Northeast Asia Marker price assessment defined as the daily average of ‘LNG Japan/Korea DES 2 Half-Month’ administered by Platts Benchmark B.V. (the Netherlands), and ‘Northeast Asia des (ANEA) – half-month 2’ administered by Argus Benchmark Administration B.V. (the Netherlands); with a conversion of LNG price assessments USD per MMBtu into EUR per MWh, on the basis of the ECB’s Euro foreign exchange rate and a conversion rate of 1 MMBtu to 0.293071 kWh;
• The front-month NBP derivative settlement price, as published by ICE Futures Europe (the United Kingdom); with a conversion of Sterling pence per therm into EUR per MWh, on the basis of the ECB’s Euro foreign exchange rate and a conversion rate of 1 therm to 29.3071 kWh;
• The price of the daily price assessment carried out by ACER pursuant to Article 18 of Regulation (EU) 2022/2576;