EU sets the ceiling price for natural gas as 180 euros

The member states of the European Union (EU) have agreed to apply a ceiling price of 180 euros per megawatt-hour to natural gas.

The energy ministers of the 27 EU member states met in Brussels to discuss the measures to be taken against the energy crisis in Europe and the ceiling price to be applied to imported natural gas.

In the statement made after the meeting, it was stated that member countries agreed on a temporary mechanism to limit excessively high gas prices.

“The energy ministers of EU countries have reached political agreement on the regulation that sets a market correction mechanism to protect citizens and the economy against excessively high gas prices.” In the statement using the expression, it was noted that the gas ceiling price aims to limit the security of energy supply, the stability of financial markets and the excessive fluctuations in gas prices in Europe that do not reflect the world market prices.

In the statement, the ceiling price of the future gas contract traded at TTF, the Netherlands-based virtual natural gas trading point with the most depth in Europe, exceeded 180 euros for 3 working days, and the megawatt-hour price of liquefied natural gas (LNG) in Europe in the same period was 35 euros above the global markets. declared that it will come into effect.

Pointing out that the mechanism will enter into force as of February 15, 2023, it was stated in the statement that the EU Energy Regulators Cooperation Agency (ACER) will continuously monitor the markets and publish the relevant notifications.

In the statement, it was stated that a system was introduced in which the mechanism can be suspended if risks are detected in the field of energy supply security, financial stability, gas flow or gas demand, and that the EU Commission may suspend the mechanism in case of risks or disturbance in the market.

Noting that the ceiling price application will be suspended, especially if gas demand increases by 15 percent in one month or 10 percent in 2 months, LNG imports decrease significantly or the amount of gas traded in TTF decreases significantly compared to the same period of the previous year, the decision to suspend the application was made. It was stated that it would enter into force one day after its publication in the EU Official Journal.

The Polish prime minister said the price ceiling would put an end to Russia and Gazprom’s ability to disrupt the market.

“This is about our energy future. It’s about energy security. It’s about how we have affordable prices,” said Belgian Energy Minister Tinne Van der Straeten. she said.

“Despite progress over the past few weeks, the market correction mechanism remains potentially unsafe,” Dutch Energy Minister Rob Jetten said.

Approaching the ceiling price application with reservations, Germany supported the bill.


The EU Commission proposed to apply a correction mechanism known as a “price ceiling” to gas prices in the markets last month.

The plan would come into effect if the gas futures contract traded at TTF, the Netherlands-based virtual natural gas trading point with the deepest depth in Europe, exceeds 275 euros for two weeks and the megawatt-hour price of liquefied natural gas (LNG) in Europe exceeds 58 euros in global markets.

The last proposal prepared by the Czech Republic, the Presidency of the EU, to reach consensus among the member states, included the introduction of the ceiling price if the natural gas price exceeded 188 euros per megawatt-hour for 3 days and the difference with the global LNG prices was 35 euros.

Countries such as Germany, the Netherlands, Austria, Denmark and Hungary were wary of the price ceiling, fearing that it would reduce gas supplies to Europe.

On the other hand, gas futures contract price traded on TTF rose to 340 euros per megawatt-hour in August, while today it is trading at 106 euros.

Photos: AP