European Union energy ministers have voted for a market mechanism for safeguarding industry and residential consumers from the impact of extreme spikes in wholesale gas prices after the record-high levels reached earlier this year.

The agreement comes after months of heated debate between EU member states on how to tackle extreme price volatility, such as that prompted by the disruption in Russian gas flows to the continent during much of 2022.

The EU Council will bring into force a so-called ‘market correction mechanism’ from 15 February 2023 and set a ceiling for month-ahead gas futures prices, to be measured against the European benchmark price indicator on the Netherlands’ Title Transfer Facility (TTF).