European Commission agrees on €180/MWh cap for Russian gas

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From pv magazine Spain

The energy ministers of the European Union reached an agreement earlier this week to limit the price of gas imports from Russia to €180/MWh – the same value as the price cap on renewables. The cap will apply to transactions linked to the Dutch TTF index.

The measure, which stems from what is known as the “Iberian exception,” was supported by Germany, with the Netherlands and Austria abstaining, and Hungary voting against it. It is expected to go into force on Feb. 15, 2023.

The mechanism will be activated when the gas price exceeds €180/MWh for three consecutive days. A price limit will then go into effect, but it will be automatically deactivated when global prices dip below €145/MWh for three consecutive days.

Similarly, the cap could be suspended due to emergencies in the natural gas sector, instability in financial markets, declines in LNG arrivals to the European Union that affect the security of supplies, or significant jumps in gas demand.

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