EU countries reach compromise on gas price cap

European Union ministers on Monday finalised a long-awaited deal to implement a natural gas price cap that they hope will help households and businesses better weather excessive price surges.

Under EU rules, a qualified majority requires that 55% of member countries, or 17 out of the 27, vote in favor of a proposal.

Such a vote also requires that those nations represent at least 65% of the bloc’s population. Under the agreement, the mechanism will kick in if prices exceed 180 euros per megawatt hour for three days and if it is 35 euros higher than a reference price for LNG on global markets for the same period. Once triggered, the mechanism will remain active for at least 20 days.