EU energy ministers on Tuesday failed to reach a final agreement on setting a cap on natural gas prices, according to three EU diplomats, despite a marathon meeting in Brussels which ran more than eight hours over the scheduled time.
The extraordinary Energy Council was meant to discuss proposals for a so-called “market correction mechanism” aimed at avoiding the kind of dramatic price spikes seen in the summer.
Under the Commission’s original plan, the cap would be triggered when prices on the European wholesale gas trading benchmark — the Dutch TTF — hit €275 per megawatt-hour for two weeks, if those prices are more than €58 per MWh higher than liquefied natural gas prices on the global market.
But countries remain starkly divided over the plan, with at least 12 capitals pushing for a lower price cap, while at least five countries more skeptical of the approach want a higher price and safeguards to guarantee the security of gas supply and financial market stability.
According to three diplomats, the meeting ended with no final agreement on the gas price cap mechanism. One diplomat said the discussion would be resumed on Monday, when another — prescheduled — meeting of energy ministers is planned.
“The presidency will say we have in principle agreement on many aspects … but the truth is we will have a long discussion on Monday,” the diplomat said. They added that the precise trigger price remains an open debate, with options still on the table ranging from €160 to €220.
Agreement on a wider package of energy crisis measures — including joint purchasing of gas and speeding up approvals for renewables projects — has also been delayed until at least Monday, a second diplomat said.
