EU Finally Agrees On Gas Price Cap After Weeks Of Haggling

European Union (EU) nations' energy ministers have agreed on a gas price cap, a spokesperson for the Czech Republic said on Twitter, Kate Abnett reported for Reuters.

Photo Insert: The gas price cap aims to address the EU energy crisis, likewise reduce its dependency on Russia.

The deal follows weeks of talks on the emergency measure that has split opinion across the bloc as it seeks to tame the energy crisis. The Czech Republic holds the EU's rotating presidency and chaired the negotiations.

According to officials and a document seen by Reuters, European Union countries' energy ministers agreed that the cap on gas prices would be triggered when benchmark gas prices spike to 180 euros per megawatt hour.

The EU gas price cap would kick in if prices on the front-month Dutch Title Transfer Facility gas hub contract exceed 180 eur/MWh for three days, the document detailing EU ministers' agreement showed.

The cap can be triggered from Feb. 15 onwards, and will not apply to over-the-counter (OTC) trades initially, the document said.

Three EU officials said that Germany - which had been skeptical about the price cap - had voted to support a EU deal on a gas price cap on Monday, despite having raised concerns about the policy's impact on Europe's ability to attract gas supplies in price-competitive global markets.

Germany and other countries skeptical of the cap had sought more safeguards to ensure that it would be suspended if the policy has negative consequences.

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