London Daily

Focus on the big picture.
Thursday, Jul 31, 2025

EU energy ministers fail to reach gas price cap deal

EU energy ministers fail to reach gas price cap deal

A marathon meeting ends with countries starkly divided over the Commission’s plan.
Efforts by EU energy ministers to strike a deal on capping the price of natural gas flopped on Tuesday after more than six hours of talks failed to reach a final agreement.

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 — a knock-on effect of the turmoil in energy markets caused by Russia's invasion of Ukraine.

But there are very deep divisions among EU countries over whether there should be a cap at all, and if it is to happen, at what price it would be triggered.

"Last time I was hoping to open champagne to celebrate the agreement, but apparently, we still need to keep the bottles in the fridge for a while," said Czech Industry Minister Jozef Síkela, whose country holds the rotating presidency of the EU Council.

Under the European Commission’s original plan, the cap would go into effect when prices on the Dutch TTF hub hit €275 per megawatt-hour for two weeks, and if those prices are more than €58 per MWh higher than liquefied natural gas prices on the global market.

That proposed cap was set so high that it would not have been triggered even during August's price spike, when prices briefly reached €350 per MWh — prompting outrage from cap-backing countries.

The Czech Council presidency has since suggested several amendments to the Commission proposal, but hours of talks failed to make a final breakthrough.

“We knew that reaching an agreement on this topic was never going to be easy. For the past weeks of intense negotiations, we have made progress on technical aspects” said Energy Commissioner Kadri Simson, adding that despite the "skill" of the presidency, "there are still different views on this aspect of the proposal."

The talks now shift to another Energy Council set for Monday.

"The truth is we will have a long discussion on Monday," an EU diplomat said, adding that the precise trigger price remains an open debate, with options still on the table ranging from €160 to €220 per MWh.

Riina Sikkut, Estonia’s minister of economic affairs and infrastructure, told POLITICO that there was an agreement that the cap should be triggered when gas prices are €35 per MWh higher than global LNG prices for three days, but that disputes remained over whether all European gas hubs should be included when calculating the cap strike price.

The delay affects other files aimed at helping the bloc wean itself off Russian gas imports, including measures to speed up approvals of renewable energy projects and jointly purchase gas. Síkela said those files would be approved next week.

"It could go either way," another EU diplomat said of the renewed effort to agree on a price cap. "The process could implode or we could reach a deal. It depends strongly on [member states'] willingnesses to broker a deal."

“Let’s hope — in the spirit of Christmas,” Sikkut said.
Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×