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European Union (EU) energy ministers agreed on Monday to set a cap on natural gas prices, a temporary measure aimed at protecting citizens from excessive costs during winter.
The new regulation seeks to curb episodes of excessive gas prices that do not reflect world market prices while guaranteeing security of energy supplies and financial stability, the European Council said.
“We have succeeded in finding an important agreement that will shield citizens from skyrocketing energy prices,” Jozef Síkela, Czech minister of industry and trade, said in a statement.
“We will set a realistic and effective mechanism, which includes the necessary safeguards that will steer us clear from risks,” added Síkela, whose country currently holds the EU Council presidency.
The EU Council said the price cap will be activated if gas prices exceed 180 euros ($191) per megawatt-hour on the Dutch Title Transfer Facility — a primary European benchmark — for three working days and if they are 35 euros ($37) higher than a reference price for liquefied natural gas on global markets in the same period.
