European Commission acknowledges technical complexity and maintains nearly a month delay in final approval of Iberian exceptionalism
The European Commission continues to study the decrees that Spain and Portugal sent to Brussels almost a month ago to approve the cap on the gas price in the wholesale market, which will help absorb the rise in electricity in both countries. But the Iberian exceptionalism – as the measure approved by the European Council is called at the end of March – is stuck in the community offices. There are no signs that the EU will support this initiative in the coming days.
Although the ‘yes’ could come at any moment, the analysis of the decrees – also closely followed by the rest of the European partners, especially those from Central and Eastern Europe, with Germany in the lead – has become ‘complicated’ with the passing days, according to various sources in the energy market. Brussels wants similar regulatory treatment on both sides of the peninsula’s border. And that fit becomes difficult with two completely different legal texts (the Spanish decree has more than 60 pages and the Portuguese less than 10), as well as two heterogeneous systems.
Balancing an authorization that serves both countries is the challenge facing the Commission. European sources assured a month ago that the European Commission could in principle take separate decisions regarding the plans submitted by Spain and Portugal. For several weeks now, there has been talk of “technical level work” and “polishing technical details” for approval. But the Community Executive does not provide an estimate of when it could give the green light to the Iberian exception.
The delays and waiting for the response from the community are mounting as the government insists on the need to have a guarantee as soon as possible without which the limitation of gas in the daily market cannot be implemented. The government president indicated last week, at the last European summit, that “the work the Ministry of Ecological Transition is doing” should be recognized for the “intensive work it is doing”. “I hope the final agreement will be very soon,” said Sánchez, for whom this measure is “essential” for the economy of families and businesses.
The mechanism is complex because it is the first time that the possibility has been identified that two countries would not be subject to the same rules as the rest of the partners in the electricity market. The proposal sets an initial maximum gas price of EUR 40/MWh, to be gradually increased later to a ceiling of EUR 50/MWh, with an average of just over EUR 48/MWh in the coming year. Gas was quoted yesterday at around 83 euros/MWh on the Dutch market, where this raw material sets its benchmark.
As the days go by, consumers no longer see the potential effect of the fuel cap. When Brussels approves the cap on the wholesale price of gas, households covered by the regulated rate (approximately 10 million points across Spain, 38% of the total) will not get it on their accounts until they have been capped for at least a full month authorized.
From the Ministry of Ecological Transition, they clarify that the practical effect “depends on the closing of the billing period of the consumers who benefit from it”. Therefore, at least 30 days are needed to verify it on the receipt. Of the savings initially estimated at about 30% on electricity bills, the government is starting to talk that the reduction that will be noticed will be 15%. The vice president herself, Teresa Ribera, admitted that these savings “may not be the size we would have liked”.
Meanwhile, the Executive does not believe there could be a “lack of supply” of gas in the coming months despite the threat of a rise in gas prices from this country. This is indicated in a parliamentary response gathered by the EP in relation to relations with a “trustworthy partner” such as Algeria.
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.
