Spain and Portugal limit gas prices to reduce household electricity bills

Spain and Portugal limit gas prices to reduce household electricity bills


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On 24 and 25 March, during a European summit, Spain and Portugal had affirmed the need to limit the price of gas, to cope with the vagaries of international energy prices. It is official today, Madrid and Lisbon have approved the limitation of the price of gas to reduce the electricity bill.

With our correspondent in Madrid, Francois Musseau

Pedro Sanchez’s government hopes that this will reassure the population and allow for predictability in the face of the world situation.

Limiting the price of gas to 40 euros per megawatt, then gradually to 50 euros per megawatt, is the lever that the Spanish government wanted to put an end to the terrible social anger that began with that of freight transporters and which gradually spread until entire society. ” To calm down, to reassure the population “, Insisted the head of the government Pedro Sanchez.

In practice, this price limit has a direct impact the price of electricity, because it is the gas that produces electricity. On average, according to official calculations, the cost is expected to decrease by 40% in the near future. This is a considerable figure, and more precisely 30% for this large percentage of Spanish individuals and companies, which are subject to regulated tariffs subject to the whims of the sector.

A measure that directly benefits individuals

In the eyes of the Minister for Ecological Transition, Teresa Ribera, this is an unprecedented measure, because, for the first time, it directly benefits individuals and families affected by the increase in energy prices. at the expense of large electrical groups.

It remains to obtain the approval of the European Commission, therefore, Madrid hopes, the provision will come into force from June.

Spain and Portugal leave the European system

Spain and Portugal reached an agreement in Brussels at the end of April with the European Commission to lower the price of electricity in the Iberian Peninsula, under a derogation that allows them to dissociate it from that of gas.

The cost of energy has soared in recent months in Spain and Portugal due to the rules of the European electricity market, which oblige producers to sell their energy at the price of the most expensive technology – c ‘, currently that of gas stations. .

Madrid and Lisbon fought against this system considered unsuitable for the energy reality of the Iberian Peninsula.

This mechanism has a duration of 12 months and will initially limit the price of gas used for electricity generation to 40 euros per megawatt hour, with an average target of 50 euros over the next 12 months. Natural gas prices on the wholesale market are currently around 90 euros per megawatt hour.

To read: Spain: Inflation at its highest for thirty-seven years



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