Third Vice-President of the Government and Minister of Ecological Transition, Theresa Rivera, confirmed that the mechanism would take effect this Tuesday. The aim is to curb rising gas prices while reducing electricity costs for consumers who are now fully prepared for the change, with effects expected within days to weeks.
During questions from journalists at the Senate General Assembly doors, Rivera explained that the priority is to complete the final adoption stage of the provisions by Spain and Portugal, following Brussels’ letters of agreement to both nations yesterday.
The European Commission has moved ahead with the plan, but the formalization requires a decision by the committee of commissioners, a step that has prompted the mechanism’s implementation, according to Rivera.
On Tuesday, the Government’s Ministerial spokesman, Elizabeth Rodríguez, announced an extraordinary Council of Ministers for Friday, May 13, when final approval will be given to implement the measure.
Rodríguez stated, “The entire mechanism has been defined and the Commission’s various requests have been met. We expect the two governments to act in tandem, ratifying the arrangement so it can take effect in parallel.”
Spain and Portugal disclosed this plan on April 26, describing it as a political agreement with the European Commission to limit wholesale electricity costs in both countries, with the price of gas used by combined-cycle power plants to generate power also capped.
The measure is expected to benefit up to 40% of domestic consumers on regulated rates and 80% of industrial users whose bills are linked to the wholesale electricity market, often referred to as the “pool.”
The initiative will run for an initial period of twelve months, with an average gas price anchored around 40 euros per megawatt-hour and a ceiling near 50 euros per MWh over the period.
According to projections, the mechanism should also deliver substantial savings for households, reducing bills by roughly 30% for an average consumer whose rate is tied to the pool, with the exact impact depending on the energy mix of the individual electricity generation sources involved.