After lengthy negotiations, EU countries reached an agreement on a gas price cap on Monday. There was a big controversy over such measures as the bloc's efforts were focused on overcoming the energy crisis.
EU countries decided to use extreme measures by imposing a cap on gas prices. The EU has strived to lower gas prices in recent months as they resulted in soaring energy bills and inflation after Europe was enduring a partial cutoff of natural gas exports from Russia.
As reported by Reuters, energy ministers suggested that the cap should sit at 180 euros per megawatt hour. It would kick in if prices on the Dutch Title Transfer Facility’s (TTF) front-month contract exceed 180 euros per megawatt-hour for three consecutive working days.
The price ceiling is planned to come into force as of February 15 of next year after it is formally approved in writing.