Czech EU Presidency to Propose €188 Gas Price Cap Compromise

Prague prices Water, Gas and Waste Collection

The Czech EU Council Presidency would like energy ministers from across the Union to agree to cap gas at €188 per megawatt-hour (MWh) in Brussels on Monday.

Negotiations over a maximum price to cap the sale of gas to help households with skyrocketing energy bills have long been on the table, and following a recent back-and-forth, 15 EU states now want to set the market correction mechanism at €160 per MWh.

But Germany “wants a price gap that would be unworkable,” said a senior EU diplomat so to reach a compromise, the Czech EU presidency is aiming for a cap at around €188 per MWh.

To adopt an EU gas price cap, qualified majority voting is possible, though consensus is preferred.

Also under discussion are the gas price cap’s activation and deactivation conditions.

In its latest proposal, the Czech EU presidency also strengthens rules for the mechanism’s automatic termination, which would be triggered if gas consumption rises, an emergency situation in an EU country or a massive interruption of LNG imports to Europe.

“Everybody knows that we need an emergency brake,” an EU senior diplomat said.

Together with the market correction mechanism, cross-border solidarity principles and a faster-permitting process for renewable energy sources should also be approved.

On Monday, EU energy ministers are also expected to strive for a general approach to the EU methane regulation, while the Czech EU Presidency expects an agreement on the REPower EU plan amending legislation on renewables, energy efficiency and energy performance of buildings.

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