EU members agree on gas price cap after weeks of talks

Photo by Thierry Monasse/Getty Images cropped

Climate Ministers of EU member states agreed to trigger a cap if prices exceed EUR 180 per megawatt hour for three days on the Dutch Title Transfer Facility (TTF).

The agreement was supported by 27 EU countries in an attempt to lower gas prices caused by the Russian politically-motivated decision to cut off most of its gas deliveries to Europe followed by its invasion of Ukraine.

The rules indicated in the document can be applied from February 15 onwards.

Three EU officials confirmed that after strong opposition Germany had voted to support a European Union deal on a gas price cap. Germany’s stance was highly criticised around Europe as breaking the EU’s consolidation in the crucial field of energy.

Germany and other countries that initially opposed the deal introduced special clauses to suspend the cap if it brings negative consequences. The deal follows a long debate that failed to produce an agreement among member states that disagreed on whether a price cap would help the energy market.

“This is about our energy future. It's about energy security. It's about how we have affordable prices, that we avoid de-industrialisation,” Belgium’s energy minister Tinne Van der Straeten said after concluding the project.

Initially, the deal will not be applied to private gas trades outside energy exchanges, but this might change while the cap will already be functioning.