A Price Cap is a system for regulating the prices of a bundle of services such as utilities that is determined and maximum ceiling fixed cost.
Related Definitions in the Project: The Commercial Definitions
Example Article of the Price Cap:
EU Gas Price Cap Could Trigger Significant Changes In Markets (Source: Oil Price on 23 January 2023): By Tsvetana Paraskova - The upcoming price cap on the benchmark European gas contract could abruptly change the gas market and impact the functioning of other markets as well as financial stability, according to the European Securities and Markets Authority (ESMA). ESMA was expected to announce on Monday the assessment of the consequences of the gas price cap on the markets. “It could trigger significant and abrupt changes of the broader market environment, which could impact the orderly functioning of markets, and ultimately financial stability,” ESMA was expected to say, according to the opinion seen by Bloomberg ahead of its publication. After months of negotiations, the EU finally agreed in December to set a price cap on natural gas to protect consumers from excessive price spikes and limit inflationary pressure and industrial damage to European economies. ...
