Both countries had negotiated a corresponding special regulation at the EU summit last Friday. The proposal will not lead to market distortions, emphasized Spain’s Environment Minister Teresa Ribera, as reported by the Spanish state TV broadcaster RTVE on Thursday.
Energy costs have risen sharply in both countries, as they have throughout Europe, over the past year. Russia’s war of aggression in Ukraine further accelerated this development and is a heavy burden on many households.
The intended regulation provides that the power plants in both countries set a reference value of 30 euros per megawatt hour of gas that they use to generate electricity. Since the electricity price is based on the most expensive energy source used, which has so far been gas, the wholesale price for electricity should more than halve to around EUR 85 to EUR 90 per megawatt hour.
Since the producers have to buy the natural gas at a price that is currently more than 100 euros per megawatt hour, they should receive compensation. This is to be financed by a surcharge on all electricity bills for end customers. The bottom line is that this will still provide some relief for consumers, both governments stressed. On the producer side, the regulation would mean that profits from the marketing of electricity from sun, wind and hydropower would fall.
The newspaper “La Vanguardia” wrote that it should take at least three to four weeks for the EU Commission to make a decision.
Source: Nachrichten
