Ljubljana, 31 January 2025
31 January 2025 marks the final day of the EU’s gas Market Correction Mechanism (MCM). Established by the MCM Regulation in December 2022, in the midst of the energy crisis, this mechanism was designed to protect EU citizens and the economy against excessively high energy prices.
It tasked ACER with the calculation and publication of a daily MCM reference price. It entered into force on 1 February 2023 for an initial year and was later extended to 31 January 2025.
What is the MCM?
The MCM was a safeguard to cap gas prices in the EU. It would activate only if:
- Gas prices at EU hubs exceeded €180/MWh for three consecutive working days.
- These prices were at least €35/MWh higher than the MCM reference price during the same period.
Upon activation, a bidding limit would cap gas trading prices to protect the market from further escalation.
The MCM was never activated, as market conditions never met these thresholds.
The MCM’s effects on energy and financial markets have been closely monitored by ACER and by ESMA (European Securities and Markets Authority) respectively – no significant impacts on the market have been directly attributed to it.
Source – ACER