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Brussels awaits formal notification of the Iberian exception to evaluate it

The European Commission is expected to formally send the so-called “Iberian exception” to Spain and Portugal, which limits the price…

By admin , in news , at May 13, 2022

The European Commission is expected to formally send the so-called “Iberian exception” to Spain and Portugal, which limits the price of gas to reduce electricity bills, approved by the Council of Ministers this Friday, to assess its and final decision can be issued. in this regard..

,No formal decision has been taken by the European Commission (…) We should wait for formal notification from the Spanish and Portuguese authorities to make a formal decision in this regard later,” Ariana Podesta, spokeswoman for the Community Executive Competition, said at a news conference.

Brussels already issued a positive “preliminary” analysis on Monday, opening the door for the two Iberian countries to formally approve the rules in accordance with their domestic process. Madrid and Lisbon now have to hand over all details to community officials for final evaluation.

In accordance with European competition rules, member states must wait for a positive opinion from Brussels to implement state aid, although community authorities will not act if the entry into force is earlier, but is in line with what has already been agreed upon at a technical level.

As the government explained this Friday, the cap on the price of gas used for electricity generation This will reduce the electricity bill by about 40 percent. For consumers falling within the rates indexed in the wholesale market (pool).

The mechanism will be valid for twelve months and a gas price limit of 40 euros per megawatt hour (MWh) will be established during the first weeks, which will gradually increase until it averages around 50 euros MWh over the entire period. Would reach. About half the current price.

Teresa Ribera, Vice President of Ecological Transition, explained that with this cap, the wholesale price of electricity would be around €130 a megawatt compared to €210, the average cost of which during the first quarter of the year.

The regulation will be published in the Official State Gazette (BOE) tomorrow or Monday and will come into force the next day, although the full application will be subject to final approval by the European Commission, which, according to Ribera, could take a week or ten days.

Brussels awaits formal notification of the Iberian exception to evaluate it

2022-05-13 10:57:43