According to sources to Sputnik, the European Commission (EC) submitted a proposal to establish a "correction mechanism" over a one-year duration to try and put a limit on "episodes of excessive gas prices".

The main concentration of the newly suggested mechanism is at EU's largest gas hub, the TTF.

 "Today we are making a proposal on a market correction mechanism," the source told the news outlet.

"We're not limiting high prices here, the purpose of the mechanism is to limit episodes of excessive gas prices," noting that TTF hub prices are the main focus.

The EC first suggested the proposal back in October and drafted later a legislative proposal to submit to members of the union for the final decision. 

The proposal is set to be presented on Tuesday for consideration by the member states and is expected to take place at an extraordinary council of energy ministers on November 24.

However, the mechanism will "be activated if certain conditions are met," rather than directly after the approval the source added.

The European Commissioner for Energy Kadri Simson said that the commission suggests setting a price cap for monthly gas futures on the TTF index at 275 euros per MWh, adding that in case the price crosses the upper limit, the mechanism will automatically launch.

A flashback

Russian Deputy Prime Minister Alexander Novak affirmed, on Monday, that Russia will not send oil and petroleum products to nations that use the price-cap approach; instead, Moscow will reroute supplies to market-oriented allies or limit production entirely.

Novak’s remarks came in light of the G7's recent decision to cap the prices of Russian oil in an effort to prevent Russia from profiteering from its oil revenues.

The cap is scheduled to be implemented in full force from December 5 on sea-borne oil shipments, with a second cap on oil products from February 5.