EU energy ministers on Monday agreed on a gas price cap of €180 ($190) per megawatt-hour (MWh), the Czech presidency of the European Council announced.
The news was announced by Dmitrij Cernikov, the spokesperson of the council’s rotating presidency, when he tweeted, simply: “DEAL.”
The regulation, agreed to come into force on Feb. 15, 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 European Commission said in a statement.
“We have succeeded in finding an important agreement that will shield citizens from skyrocketing energy prices. We will set a realistic and effective mechanism, which includes the necessary safeguards that will steer us clear from risks to security of supply and financial markets stability,” Jozef Sikela, Czech minister of industry and trade, said.
“Once again, we have proved that the EU is united and will not let anybody use energy as a weapon,” Sikela added. The cap is €95 lower than last week’s failed proposal of €275 per MWh, which 12 member states had disagreed with.
The measure will kick in if the Dutch Title Transfer Facility natural gas futures exceed the price of €180 per MWh and are at least €35 above the average price of liquefied natural gas for three days in a row.
Calling the deal a “great success” in the last days of Czech presidency, Prime Minister Petr Fiala tweeted: “We have negotiated a cap on gas prices and managed to reach a very important deal to secure affordable energies for European households and businesses.”
The European Commission proposed implementing a correction mechanism for gas prices in the markets last month to avoid the kind of dramatic price spikes seen this summer. Italian Energy Minister Gilberto Pichetto described the agreement as a “victory of the Italian and European citizens” who are seeking energy security.