Rob Jetten, the head of the Dutch Ministry of Climate and Energy, signaled that Amsterdam questions the safety of the EU’s proposed gas price cap for the gas market. The Dutch government has not backed the proposal in its current form, citing potential risks to reliable gas supply within Europe. This stance follows recent discussions at the EU level, with officials noting that the price cap could have unintended consequences for energy security and market stability.
Jetten explained that the perceived issues became clearer after a recent EU Council decision. Despite some improvements in the market situation, he warned that the cap might still threaten gas supplies and the broader European energy system. He underscored that the Netherlands cannot support the proposal as it stands, citing concerns about security of supply and potential impacts on financial outcomes for energy players across the region.
The Dutch minister highlighted anxieties about how any price ceiling could influence gas traders, suppliers, and consumers. He suggested that if a price cap is chosen, it must be designed to avoid creating distortions that could disrupt flows, pricing signals, or liquidity in the European gas market. The focus remains on maintaining a stable energy supply while pursuing cost containment and market fairness for European consumers.
Meanwhile, a Council document from the EU indicates that a gas price ceiling of €180 per megawatt hour (approximately €1.85 thousand per thousand cubic meters) could come into effect on February 15 if specific conditions are met. The mechanism allows for an adjustment to be activated should the price on the TTF exchange persist at €180 for three consecutive days and if the disparity between TTF prices and the average price of liquefied natural gas exceeds €35. The intent is to prevent sharp price spikes and to mitigate volatility that could threaten energy security across member states.
Observers note that the proposed mechanism aims to provide a predictable framework while balancing incentives for producers, traders, and buyers. The conversation around the price cap touches on broader questions about market integrity, competitive dynamics, and the role of public policy in safeguarding essential energy services. As EU negotiators continue to refine the design, attention remains on how such a policy would interact with LNG markets, pipeline gas flows, and regional energy strategies. Market participants are watching closely for updates on timing, triggers, and potential exemptions that could affect different member states in varied ways.