Spain and Portugal propose EU cap of 180 eur/MWh on energy prices
17/03/2022 11:52
MADRID/LISBON, March 17 (Reuters) - Spain and Portugal will
propose limiting wholesale electricity prices to 180 euros per
megawatt hour (MWh) in the European Union, Spanish Energy and
Environment Minister Teresa Ribera said on Thursday.
Governments across Europe have scrambled to cushion the
effect on consumers of gas prices that have rocketed amid
concerns over supply disruptions after Russia, Europe's top gas
supplier, invaded Ukraine.
"We are working on a European response to lower energy
prices," Ribera told Onda Cero radio, adding that Spain would
take its own measures if the EU did not reach an agreement at
the next EU summit on March 24-25.
With the new joint proposal, Spain and Portugal wish to
reinstate the limit of 180 euros/MWh in the electricity "spot"
market they were forced to eliminate in 2019 when the EU decided
to remove curbs on energy prices across Europe.
"Until two years ago, the maximum price of 180 euros per MWh
seemed like a fantasy that would never be reached, and today it
has been largely surpassed," Ribera said. "There is little
argument that this should be the maximum we should accept in our
market."
Portuguese Environment Minister Joao Matos Fernandes said on
Tuesday combined-cycle natural gas plants where the cost per MWh
is more than 180 euros would receive the difference and the cash
would come from the European Compensation Fund.
He said the proposal would allow Portugal and Spain to save
up to 5.7 billion euros ($6.30 billion) every month.
"The wholesale electricity market is strongly pressured by
the price of natural gas, which is registering maximum prices
never seen before," Matos Fernandes said. He argued that without
the mechanism, "irreversible harmful effects" could impact
Europe's industries and families.
($1 = 0.9047 euros)
(Reporting by Christina Thykjaer in Madrid and Catarina Demony
in Lisbon, editing by Mark Heinrich)
((Christina.Thykjaer@thomsonreuters.com;))