Spain To Ask EU For An Extension On Gas Price Cap Until End Of 2024
Spain News
Published: 10 January 2023 16:58 CET
Spain’s government wants permission from the EU to extend the cap on electricity prices until the end of next year.
Back on June 15, last year, Spain and Portugal adopted the so-called ‘Iberian exception’ that allows the countries to cap the price of gas that is used for the production of electricity, thus allowing household and business energy bills to be drastically reduced.
Since the price cap came into force, Spain has been able to cap the price of gas at 40 euros/MW. This will now be raised by five euros/MWh until May, when the measure is due to come to an end.
Speaking on Monday during an interview with Espejo Publico, Teresa Ribera, Spain’s Minister for Ecological Transition, stated that she will ask Brussels for a new price cap of between 45 and 50 euros per MW/h.
This price is slightly higher than that which has been in place for the last six months, but Ribera said “We are going to present proposals to modernise the electricity system to the Commission, and we will also apply for the gas price cap to continue. We want it to be as close as possible to what it is today. We would like it to be as low as possible. We intend to extend this Iberian solution, making it a priority, until at least the end of 2024.”
The price of electricity depends hugely on how much gas is needed to produce it, for example when renewable energies are used the prices fall, but when more gas is required the price increases.
Other EU countries, such as France and Italy, have for months, been calling for a similar system to be implemented. However, discussions have been delayed in recent months, as countries like Austria and the Netherlands prefer to rely on free-market competition or increased network interconnections to lower prices.
Major talks are scheduled by the European Commission, during which the reform of the European electricity system will be one of the main topics on the agenda.
Sources
https://euroweeklynews.com/2023/01/10/spain-to-request-that-brussels-extends-the-current-iberian-exception-on-gas-prices/
https://www.surinenglish.com/spain/spain-apply-price-20230109120751-nt.html
https://www.thelocal.es/20230109/spain-wants-electricity-price-cap-extended-to-end-2024/
