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The EU agreed to limit gas prices, but some analysts are skeptical

2022-12-21 09:57:44       source:CNBC

December 20, 2022

The European Union Monday concluded two months of heated talks over how to protect households from rising energy prices — but some analysts argue the bloc's solution is unsustainable and might not withstand the realities of a 2023 gas supply crunch.

EU members compromised by adopting a "dynamic" cap on the price that can be bid for front-month gas contracts on Europe's benchmark trading facility.

The level at which the cap is triggered was lowered to 180 euros per megawatt hour, after an initial proposal of 275 euros per megawatt hour was criticized as far too high by countries including Poland, Spain and Greece.

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