the government got Brussels approval extension of the gas ceiling until the end of the year. After months of negotiations Spain and Portugal with the European CommissionTeresa Ribera, third vice president and minister for Ecological Transition, received the approval of the Competition Commissioner this Monday afternoon, Margrethe VestagerTo expand the Iberian mechanism, which expired on May 31, El Periódico de Catalunya learned from government sources.
vice president Teresa Ribera actually, in the European capital to attend Twenty Sevens Energy Council which is celebrated this Tuesday. It is anticipated that the Spanish Government will address the issue at its weekly meeting in Madrid this Tuesday. Council of Ministers extend the measure and reformulate the current values of the mechanism.
In effect from the past 15 JuneThe mechanism, dubbed the ‘Iberian exception’ by the Spanish Government, has led to accumulated savings of 5,100 million euros for consumers, according to figures from the Ministry of Energy Transition. Its operation is based on imposing a maximum limit on gas power generation (combined cycles, coal and some cogeneration). Between June and December 2022, the cap was €40 per megawatt hour (MWh); From January until May, this limit increases by 5 euros every month.
As government sources confirm, the mechanism is expected to be extended until 31 December this year, with a price route that will increase from 55 Euros per MWh this March to 65 Euros per MWh by the end of the year. If the extension of the mechanism had not been made, it would have been reached in May.
At the beginning of January, Ribera had already announced its intention to seek the extension of this mechanism to Brussels “at least until the end of 2024”. From then on, there was political and technical meetings between Spain, Portugal and the European Commission Competition Department who is leading Margrethe Vestager. At one of the meetings held at the end of January, Vestager told his interlocutors that the maximum extension period could be extended. until December 2023 because the temporary framework of Ukraine’s war support measures is in place until then.
A few weeks ago, sources European Commission Questioned in this way, the Commission’s “well aware of the difficulties caused by the current energy crisis caused by Russia’s unjustified attack on Ukraine, and Prepared to urgently assess the compatibility of measures Emergency in this context. need for extension throttle stop mechanism He also took part in the bilateral summit held two weeks ago between Spanish President Pedro Sánchez and his Portuguese counterpart, Antonio Costa. lanzaroteAccording to Spanish government sources.
no effect
Approval for the extension of the “Iberian exception”, mechanism Since mid-February, the gas price does not reach practical effects, as the price of gas has been below the ceiling practically every day. In March it reaches 55 euros per MWh. However, this relative calm in the gas market may not last long. Gas prices right now Around 40 Euros per MWh, doubled than usual before the war in Ukraine, but far from the 300 euros it reached this summer. However ukraine war still continues and it cannot be excluded that volatility will again prevail in the energy markets in a few weeks.
At an event hosted by El Español this Monday, energy companies’ first swords agreed that prices could rise again in the coming months due to Russian gas still reaching Europe, a recovery in Chinese demand and temperatures in the region. next months. Before we go any further, Engie’s CEO in Spain, Loreto OrdonezHe stated that electricity prices will not return to their previous levels. Pre-war levels until 2026.