The Astora natural gas depot, which is the largest natural gas storage in Western Europe, is pictured in Rehden, Germany, March 16, 2022. Astora is part of the Gazprom Germania Group. (Photo: REUTERS)

A handful of states, including Europe’s biggest economy Germany, has opposed the idea of any cap, saying it could make it harder to secure supplies, while Belgium, Italy and Poland see it as a way to protect consumers and economies from the shock of high energy prices.

Under a compromise put forward late on Monday by the Czech Republic, which holds the EU’s rotating presidency, the cap would be implemented if prices exceeded 220 euros per megawatt hour for five days on the front-month contract in the Dutch Title Transfer Facility (TTF) gas hub, according to the proposal seen by Reuters.

The TTF price, which serves as the European benchmark, would also need to be 35 euros higher than a reference price for liquiefied natural gas (LNG) based on numerous existing LNG price assessments, for the cap to be triggered.

The new Czech compromise is below the 275 eur/MWh limit proposed by the the Commission, the EU executive, on Nov. 22.