Categories: International

EU Nations Agree Gas Price Cap To Shield Consumers

EU nations have agreed on a gas price cap to shield consumers.

EKO HOT BLOG reports that the European Union nations have agreed to cap soaring wholesale gas prices to protect consumers across the bloc.

From 15 February, prices will be limited if they breach 180 euros per megawatt hour for three days running.

EDITOR’S PICKS

It follows weeks of wrangling in which Germany and others sought safeguards to ensure the cap would be suspended if it had negative consequences.

Gas prices have spiked as EU countries seek ways to import less Russian gas following its invasion of Ukraine.

Previously Moscow supplied 40% of the gas used across the bloc, but those flows have fallen sharply, putting pressure on market prices.

Jozef Skiela, the Czech minister of industry and trade, said the EU had “succeeded in finding an important agreement that will shield citizens from skyrocketing energy prices.”

“Once again, we have proved that the EU is united and will not let anybody use energy as a weapon.”

In a statement, Kremlin spokesman Dimitri Peskov called the cap “unacceptable” and said it was an attack on market pricing.
The cap comes after Europe’s benchmark price for natural gas delivered via pipeline briefly surged to nearly 340 euros per megawatt hour this summer – more than three times what it is now.

It is temporary and will last for a year, the European Council said.

Once the cap is activated, gas across the bloc will have to be sold at a level equivalent to or below the global price of liquified natural gas (LNG), plus 35 euros.

FURTHER READING

This will last for at least 20 working days, the Council said, although the cap could be automatically deactivated if prices fell again.

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Benard Joseph

Benny is a seasoned storyteller with a deep interest in Public Relations, Art Directing, HR and Investigative Journalism. He can be reached via; WhatsApp; wa.me//2348104490787 Email: bernardjoseph787@gmail.com Twitter; @jooleric Instagram; @jooleric LinkedIn; Benard Joseph

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