Spain and Portugal propose to Brussels to limit the price of gas for thermal power plants to 30 euros | Economy

The governments of Spain and Portugal have submitted a proposal to the European Commission that sets a reference price for gas of 30 euros per megawatt (MWh) for thermal power plants with the aim of lowering 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 a project for the facilities of the Compostilla I thermal power plant. The document, which aims to be the starting point of the negotiation with Brussels, contemplates that the measure is in force until next December 31.

Ribera has made it clear that this is a joint proposal formulated by both governments and subject to negotiation with the European authorities. The President of the Government, Pedro Sánchez, announced on Monday that this week Spain and Portugal would present an “exceptional and temporary” measure to Brussels to set a reference price for gas, after achieving an “Iberian exception” at the European Council on Friday that to lower electricity prices in both countries. The document, according to the Portuguese newspaper Publicconsiders that the 30 euros constitute a “normal price for pre-crisis time.

Sánchez stressed that this measure “does not mean subsidizing gas, does not break the incentives for renewables or electricity flows between countries” and will allow Spain and Portugal to “significantly lower electricity prices immediately” and without “distorting” the Europe’s electricity market. “I am convinced that the approval by the European Commission will take place in a very short period of time and the next day it will be approved in the Official State Gazette with immediate effects on citizens’ electricity bills” , he underlined.

Sánchez also explained this Wednesday in the Congress of Deputies that the cost of this measure would be assumed by the energy system itself, that is, that it will not entail subsidies or public aid. The spokesman for the European Commission, Eric Mamer, stated that the Community Executive “will evaluate the Iberian proposal with the greatest diligence”.

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