France and Spain have criticized the European Commission’s proposal to cap the wholesale price of natural gas, which was so high that critics questioned whether it would ever be implemented, Al Jazeera reported.

The EU executive unveiled a gas “safeguard cap” of 275 euros (about $286) per megawatt-hour on Tuesday as the EU grapples with high energy prices caused by Moscow’s war in Ukraine and supply cuts.

But the terms meant that the cap would only come into effect when EU gas prices exceeded that threshold for two consecutive weeks, calculated on the basis of forward purchases through the bloc’s main benchmark for gas prices, the FTT (Title Transfer Facility).

The limit was also set based on the FTT price of liquefied natural gas – an easily transportable form of gas that can be shipped around the world – exceeding €58 (about US$60) for 10 days during the same two-day weeks.

Spain’s green transition minister, Teresa Ribera, called the Commission’s proposal a “joke”, saying it would lead to higher prices and hamper efforts to curb high inflation.

The French Ministry of Energy criticized the insufficient scheme, which “does not correspond to the reality of the market”.

If passed, the cap would come into force in January and was set after months of wrangling between EU countries.

It is implemented in parallel with the plan of member states to voluntarily reduce the consumption of natural gas by 15% in winter. Photo: Dreamstime

• What will be the maximum price for Russian oil / EU countries will decide on Wednesday – Reuters sources