The energy ministers of the European Union approved a gas price cap. The price ceiling was set at 180 euros per megawatt hour (MWH), and it will take effect on February 15, 2023, but there are restrictions and a warning from the European Commission that it may suspend the measure if “the risks outweigh the benefits.”
The mechanism represents the EU’s 27-nation bloc’s most recent effort to reduce gas prices, which have increased energy costs and led to record-high inflation this year after Russia stopped delivering the majority of its gas to Europe.
Gas prices briefly rose to nearly 340 euros per MWH in Europe in August, jarring EU governments. Both parties had resisted the cap during the negotiations out of concern that it would upset the energy markets in Europe and jeopardize its energy security.