Brussels bets on the price cap

It is the last victory of the Draghi government in the European Union: after months of negotiations, the energy ministers have found a political agreement to introduce a price cap on gas. The so-called “Market Correction Mechanism” will kick in if the price of gas exceeds 180 euros per megawatt hour, with a differential of 35 euros on other global indices, for three consecutive days. The device will come into effect from February 15, will apply to one-month, three-month and one-year derivative contracts, and provides for a dynamic “ceiling” to adapt to global prices.