The European Commission proposed on Tuesday a gas price cap for the European Union at €275 ($282) 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 Jan. 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 said in a written statement.
The idea to cap prices has divided EU countries for many months. The Commission's latest proposal will be debated by energy ministers from the bloc's 27 member countries on Thursday.
