This mechanism, put in place after harsh discussions, will allow the wholesale gas prices to be capped from 180 euros per megawatt hour (MWH), provided that this does not put in danger the gas supplies of the Europe.
MO12345LEMONDE with AFP
The twenty-seven had already agreed on December 13 on certain methods of the mechanism. But they had to agree on the price where the cap will start. It’s now done.
EU member states approved a mechanism on Monday to cap the wholesale gas prices as soon as they exceed 180 euros per megawatt hour (MWH) three consecutive days, according to a statement from the European Council. A level significantly lower than the threshold of 275 euros that the European Commission had initially proposed.
This ceiling mechanism, implemented after several weeks of harsh discussions, will only be activated a higher price level of at least 35 euros at the average price of liquefied natural gas (LNG), this in order to Do not endanger the gas supplies of Europe, it was said of a diplomatic source.
European energy ministers, gathered in Brussels, “have reached an important agreement that will protect citizens from the energy prices, with a realistic and effective mechanism, which includes the guarantees necessary for safety of the supply and stability of the financial markets, “said Czech Minister Jozef Sikela, whose country exercises the rotating presidency of the EU.