The European Commission proposed on Tuesday a gas price cap for the European Union at €275 per megawatt-hour (MWh) for the Dutch TTF natural gas futures which serve as the benchmark across the continent.
European Energy Commissioner Kadri Simson said that the price cap would go into effect from January 1, 2023, and remain in force for a year. However, Brussels left an option for the mechanism to be suspended at any given time.
The measure aims "to protect EU businesses and households from episodes of excessively high gas prices in the EU," the Commission noted in a written statement. The idea was debated among EU member states for months, with the discussions on today's proposal scheduled for Thursday.
