MADRID (dpa-AFX) – The Spanish government has decided to cap the price of gas used to generate electricity. Minister for Ecological Transition Teresa Ribera said on Friday in Madrid that this measure will lead to a drop in the average price of electricity by almost 40 percent on the wholesale electricity market. In the course of the energy crisis triggered by the Ukraine war, the European Union had allowed Spain and Portugal to intervene in the electricity market for twelve months.
The reduction will benefit all consumers in Spain, households, businesses and industry, Ribera said. “But those who use the regulated tariff will notice it immediately.” The reason: In Spain, the regulated tariff is tied to the power exchanges. The approximately 40 percent of households with such a tariff feel every price change immediately.
At a cabinet meeting, Prime Minister Pedro Snchez’s left-leaning government decided to cap the price of gas at EUR 40 per megawatt hour, which would apply for six months, Ribera explained. After that, the maximum price should be gradually increased. On average, a price of 48 euros per megawatt hour is targeted for the entire twelve months.
As a result, the electricity price at the wholesale market will fall to around 130 euros per megawatt hour. This means that the average price recorded in Spain in the first quarter of 210 euros will be reduced by almost 40 percent. Such a measure, which will come into force after publication in the Official Journal on Saturday or Monday at the latest, has probably never existed in Spain, emphasized the Minister./er/DP/eas