Spain and Portugal propose to limit the price of gas to 30 euros to make electricity cheaper

The governments of Spain and Portugal have submitted a preliminary proposal to the European Commission setting a reference gas price of EUR 30 per megawatt (MWh) to lower the price of electricity.

This was confirmed by the third vice president and minister of ecological transition, Teresa Ribera, during her visit to the region of El Bierzo (León), where she presented the project ‘La Térmica Cultural’ in the facilities of the Compostilla I thermal power plant.

Ribera has made it clear that this is a joint proposal prepared by both governments and under negotiation with the European authorities.

Government President Pedro Sánchez announced on Monday that Spain and Portugal will this week present an “exceptional and temporary” measure to Brussels to fix a reference price for gas, after reaching an “Iberian exception” on the European Council on Friday that to lower electricity prices in both countries.

Sánchez stressed that this measure “does not entail subsidizing gas, it does not break incentives for renewable energy sources or electricity flows between countries” and will allow Spain and Portugal to “immediately significantly reduce electricity prices” and without “disrupting the European electricity market.” ” .

“I am convinced that the approval by the European Commission will take place very shortly and will be approved the next day in the Official Gazette with immediate consequences for the electricity bills of the citizens,” he underlined.

Sánchez also explained in the Congress of Deputies this Wednesday that the cost of this measure would be borne by the energy system itself, i.e. no subsidies or government support would be involved.