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The European Union introduces a cap on gas prices

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Ziad Najjar
Ziad Najjar is an Egyptian author who studied business and finance in the United States and has a keen interest in media. He combines his expertise in these fields to create informative and engaging works accessible to a broad audience.

Today, Wednesday, the European Union introduced a dynamic gas price ceiling of 180 euros per MWh.

Many conditions must match for actual implementation, as the price adjustment mechanism will work if the Dutch TTF gas prices exceed 180 euros per MWh for three days, and also if the difference between the Dutch TTF gas prices and the average LNG price is more than 35 euros.

It can also be stopped at any time in the event of a shortage of gas in the European Union.

On December 22, 2022, the EU countries officially agreed to set a gas price ceiling from February 15 this year.

The decision will be valid for one year. And by November 1, 2023, the European Commission must evaluate the operation of the mechanism, taking into account the situation with gas supplies. Based on the results, you can offer to extend it.

The head of the German energy company, Markus Kroeber, confirmed that the gas price ceiling agreed by the European Union would not work, noting that “there is an illusion at the European level that we can keep the price of gas.”

Source: TASS

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