Monitoring Desk
BRUSSELS: European Union (EU) energy ministers have agreed to a gas price cap, following weeks of talks on the emergency ground that has split stance across the bloc as it seeks to reduce the crisis of energy.
The cap is the EU’s latest effort to lower gas prices that have pushed energy bills higher and driven record-high inflation in the current year following Russia cut off most of its gas supplies to EU countries. Energy ministers agreed to release a cap if prices exceed 180 euros per megawatt hour for 3 days on the Dutch Title Transfer Facility (TTF) gas hub’s, which serves as a benchmark of the EU.
EU energy crisis
Czech Republic’s minister for the industry said that they have succeeded in finding a significant agreement that will shield people from the energy price hike. Reports said that the deal will be formally adopted by EU countries in writing, following which it can enter into effect.
Read Also: Massive Fire in Moscow Shopping Center Kills One
EU officials said that only Hungary voted against the deal while Netherlands and Austria abstained. Both feared that it could disrupt energy markets in Europe. The EU suggestion has also drawn opposition from some market participants as well, who have said it might cause financial instability.
Italy’s energy authority expects a further raise in gas prices due to the commencement of the winter season. Russia’s Kremlin spokesman termed the cap as an attack on market pricing and rejected it.
