The energy ministers of the European Union countries agreed on setting the maximum price for gas. This was announced by the representative of the Czech Presidency in the EU, Dmytro Chernikov.
"Agreement," Chernikov wrote on Twitter, without giving details.
DEAL.
— Dmitrij Černikov (@CZernikovD) December 19, 2022
According to Bloomberg, European countries have agreed to cap the price of natural gas at 180 euros, ending months of political wrangling over whether to intervene in an energy crisis that has threatened the region with recession.
The so-called gas market correction mechanism, designed to prevent extreme price fluctuations, will be applied from February 15. The adopted limit is significantly lower than a previous proposal by the European Commission, which would not have been able to prevent the sharp spikes seen in the region earlier this year, when Russia cut gas supplies because of the war in Ukraine.
The new limit will come into effect only if the difference in price with world prices for liquefied natural gas exceeds 35 euros. To trigger the mechanism, prices must remain above both threshold levels for three days.
Although benchmark European gas prices have fallen in recent months to around €100 per megawatt hour, they remain well above average for this time of year. Policymakers and analysts also expect high prices to persist next year as countries look for alternatives to Russian supplies.