The mechanism that allows limiting the price of gas and lowering the price of electricity in the Iberian Peninsula will be in effect for a year from June 14.
Last Wednesday, the European Commission approved the mechanism that limit the price of gas and lower the price of electricity in Spain and Portugal.
This is an extraordinary measure that It is only applied to the Iberian Peninsula and will be in effect for 12 months, until May 31, 2023
Brussels has motivated its decision by citing the poor connection of the Iberian Peninsula with the rest of Europe, which is a disadvantage for its integration into the European market.
The measure will be applied from the electricity market auction on June 14 and will set prices for the following day, as reported by the Spanish government.
The director of Pedro Sánchez has explained that the limit on the gas price will be around an average of 48 euros per megawatt hour (MWh) for one year for electricity generation and has enabled this measure to enable savings of between 15% and 20% on the consumer’s account.
The Minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, has clarified that, when it starts to be implemented in mid-June, consumers will receiving electricity for the month of July
Similarly, Ribera has estimated that the gas price cap in the Iberian market will help reduce inflation in Spain “about eight tenths or a point” in the next months.
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Source: EITB
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.
