Her government Spain announced today that it poses provisional ceiling on the reference price for natural gas used by power plants, in a move which, according to the Minister of Energy, will immediately reduce costs for more than a third of individuals and for 70% of the industry.
European countries are struggling to cope with rising gas and electricity prices, which have been pushed upwards by Russian invasion of Ukraineand mitigate their impact on consumer purchasing power.
«With this decision, Spain is leading a structural change in European energy policySaid government spokeswoman Isabelle Rodriguez in a press conference in Madrid.
The European Commission agreed two weeks ago to allow Spain and Portugal to initially set aprice range at 40 euros per megawatt hour, with the price limit projected to rise to an average of 50 euros over the next 12 months.
Energy Minister Teresa Ribera said the ceiling would immediately reduce costs for 37% of individuals and 70% of industrial enterprises, and benefit all consumers within a year.
“In the next 12 months we will have a special protection system in Iberia in a context of great instability,” he added.
Spain and Portugal, according to the APE-BPE, persuaded Brussels that they should be allowed to manage their own prices electric powerwhich are often inflated due to expensive fossil fuels, although the Iberian Peninsula has large amounts of renewable energy and its interconnection with the rest of Europe is small.
Ribera added that Brussels would give the final green light for the plan within 10 days.
Source: News Beast
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