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Today, the EU Agency for the Cooperation of Energy Regulators (ACER) publishes its preliminary report on the effects of the market correction mechanism (MCM) and identifies its potential effects on energy markets and on security of supply.
Background to the market correction mechanism (MCM)
The recently adopted MCM Regulation establishes a MCM to protect citizens and the economy against excessively high gas prices. The MCM sets a bidding limit on certain financial derivatives traded at EU exchanges. This bidding limit is activated when specific conditions are met.
The Regulation tasks ACER and the European Securities and Markets Authority (ESMA) with publishing a report (by 1 March 2023) to assess the market effects resulting from the introduction of the MCM, and a preliminary report by 23 January 2023.
ESMA also published their preliminary report today.
MCM has not had an impact on EU gas markets to date
So far, ACER has not identified significant impacts (positive or negative) that could be attributed to the adoption of the MCM Regulation itself. However, this does not preclude any impact on financial and energy markets in the future.
ACER welcomes feedback on the MCM indicators
In its preliminary report, ACER proposes to use eleven market indicators that it intends to use in its final effects report due on 1 March 2023. These indicators cover across three areas: prices, flows and trades.
ACER welcomes stakeholder feedback on these indicators.
Read more on the ACER’s preliminary report and on how to submit your feedback.
