EU energy ministers have reached an agreement on a gas price cap of EUR 180 per megawatt hour to shield citizens from skyrocketing energy prices. The regulation which will come into force on 15 February 2023, aims to limit episodes of excessive gas prices in the EU that do not reflect world market prices, while ensuring security of energy supply and the stability of financial markets. The price cap will be implemented if natural gas futures on the Dutch Title Transfer Facility exceed EUR 180 per megawatt-hour and are at least EUR 35 higher than the reference price for LNG in the global markets for three consecutive working days. The price cap of EUR 180 per megawatt-hour remains much below the earlier proposed cap of EUR 275 per megawatt-hour. The European Commission has also convened a high-level industrial roundtable to support the work of the EU Energy Platform in further advancing on joint gas purchasing which is due to kick off in 2023. This follows the adoption by EU Energy Ministers of the Commission's proposed Regulation on enhancing solidarity through better coordination of gas purchases, exchanges of gas across borders and reliable price benchmarks. This Regulation provides the legal basis for aggregating EU gas demand, joint purchasing and more efficient use of infrastructure, including of EU LNG terminals.
EU energy ministers have reached an agreement on a gas price cap of EUR 180 per megawatt hour to shield citizens from skyrocketing energy prices. The regulation which will come into force on 15 February 2023, aims to limit episodes of excessive gas prices in the EU that do not reflect world market prices, while ensuring security of energy supply and the stability of financial markets. The price cap will be implemented if natural gas futures on the Dutch Title Transfer Facility exceed EUR 180 per megawatt-hour and are at least EUR 35 higher than the reference price for LNG in the global markets for three consecutive working days. The price cap of EUR 180 per megawatt-hour remains much below the earlier proposed cap of EUR 275 per megawatt-hour. The European Commission has also convened a high-level industrial roundtable to support the work of the EU Energy Platform in further advancing on joint gas purchasing which is due to kick off in 2023. This follows the adoption by EU Energy Ministers of the Commission's proposed Regulation on enhancing solidarity through better coordination of gas purchases, exchanges of gas across borders and reliable price benchmarks. This Regulation provides the legal basis for aggregating EU gas demand, joint purchasing and more efficient use of infrastructure, including of EU LNG terminals.
