Spain supports the countries that ask for this system against those who doubt it because they have a greater presence of gas and coal
The extension of the Iberian exception would save European countries 13,000 million. This is reflected in the document that the European Commission has sent to the Twenty-seven as part of the negotiations to curb the gas price and will continue this Tuesday with the meeting of European Union (EU) energy ministers. Brussels proposes that the model that works in Spain and Portugal, capping €100 to €120 per megawatt-hour (MWh) in the gas used to generate electricity, will save Member States €13,000 million.
The aim of the European Commission’s working paper is to assess the benefits and risks that extending the Iberian model could have. Although a large majority of countries are in favor of this measure, countries where gas has a greater weight in their energy mix are reluctant. Initially, limiting gas prices for electricity generation would slow rising inflation and lower consumer bills. However, this can also lead to an increase in gas consumption in the block.
Since the beginning of the Russian invasion of Ukraine, the EU has argued that one of the pillars to end dependence on Russian gas is to reduce gas consumption. In fact, European leaders have agreed on energy savings of 10% and 5% at peak times, when gas enters the electricity market.
Setting a price cap is also a market risk, as gas exporters may choose to supply gas to other countries instead of the EU. Therefore, Brussels proposes to set a maximum price “high enough to be attractive”, a maximum that would be between 100 and 120 euros MWh, well above the 60 that is the Iberian exception.
The third vice president and minister of Spain’s ecological transition, Teresa Ribera, expected the debate with the rest of the EU ministers to “be fierce”. However, he has pointed out “how important it is to decouple electricity prices from gas”, especially with a view to spring when costs will rise again. “Now warehouses are full and costs have come down, but next winter is coming and we have to act,” he emphasized.
A group of countries is also dissatisfied with the lack of concrete proposals from Brussels to curb the gas price. Among them are the 15 states – including Spain – that asked for a limit on all gas imported into the EU, regardless of its country of origin. Until now, the Netherlands and Germany have stopped such a measure, for fear that the energy supply will run out. However, at last week’s leaders’ summit, Dutch Prime Minister Mark Rutte opened the door to gas cap negotiations, leaving Berlin the last hurdle to overcome in order to reach unanimity.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
