Spanish government says Portugal and Spain approve mechanism for gas price cap on Friday
Teresa Ribera, Spanish Minister of Ecological Transition, who designates the mechanism simultaneously in the ministers of Spain and says the mechanism for the presentation of the ministers of Portugal.
The Spanish Minister of Ecological Transition said that this Wednesday that Lisbon hopes to approve “simultaneously” on Friday, in the ministerial mechanisms, to limit the price of gas for the production of electricity.
“We hope that it will be approved simultaneously in Portugal and Spain this Friday to the European Commission, which must adopt a decision by the college of commissioners so that the mechanism is in place”explanation today Teresa Ribera in plenary session of the Spanish parliament.
The person in charge of two free countries with changes in Lisbon and Madrid at the end of April, “once in European policies” and that since then have been working on the “technical details” that are worked on “sometimes can be a little complex”, making new mechanism.
The spokeswoman for the Spanish Government, Isabel Rodríguez, had already said Tuesday that Madrid would approve a proposal to Brussels “next Friday, in an extraordinary Council of Ministers”.
Isabel Rodríguez referred to the most important aspects of the new mechanism, considering it an important “that the beneficiary not only countries to reduce their electricity bills by “up to 30%”, but also that of Portuguese “neighbors”.
“It will be approved this week […]. We will do so next Friday, in an extraordinary Council of Ministers”, added the spokeswoman for the Spanish government.
Exceptional measure for the Iberian Peninsula
At the end of a temporary mechanism, the governments of Portugal and Spain reached, in April, in Brussels, a political agreement with the European Commission for the establishment of a temporary mechanism that could fix the average price of gas at 50 euros per MWh.
This measure can decouple an economic exception, gas prices and the exception as agreed in the European Council.
The mechanism is expected to last around 12 months and an average gas price of 50 euros per megawatt must be set, against the current reference price on the market of 90 euros, with the price being 40 euros.
In the current configuration of the European market, gas determines the overall price of electricity when it is used, as all producers receive the same price for the same product — electricity — when it enters the grid.