The European Commission’s proposal to cap the price of gas at 275 per megawatt hour (MWh) in the event of a sharp rise in prices threatens to provoke a rebellion between the countries of the European Union. The limit price proposed by Brussels is so high and its activation implies so many preconditions that it makes its application difficult and, in fact, if it had been in force it would not even have been applied this summer when the gas markets reached all-time highs.
The Spanish Government has shown its frontal rejection of the Brussels proposal in the current terms and, after having been in contact with Executives from other EU countries, warns that a full-fledged plan by the member states is coming to force the Commission to present a “realistic” alternative.
“It seems like a joke to us. The most dramatic thing is that we have asked the European Commission for a proposal and this is not serious,” said the Vice President and Minister for the Ecological Transition, Teresa Ribera. Spain has advanced its “resounding rejection” of the proposal and, after maintaining contacts With energy ministers from several of the countries, Ribera has warned of the “outrage” and “concern” of many of the EU states.
“I have the impression that the European Commission is going to hear very harsh things of the vast majority of ministers”, predicted the vice president, who has threatened that, in the event that a viable alternative is not presented, Spain will stop supporting other proposals from Brussels in other aspects that “may be important& rdquor; to the community executive. “Either a realistic proposal is presented or we will have to go to blockade actions,” state government sources.
The European Commission’s plans were for its gas cap proposal to be discussed at the extraordinary Council of Energy Ministers to be held this Thursday. The Government anticipates that if Brussels does not present an alternative proposal “there will be problems & rdquor; and it will cause a clash that could jeopardize the support of the countries for other measures championed by the Commission to control the effects of the energy crisis.
The Brussels proposal establishes the automatic activation of an emergency cap on the gas price of 275 per MWh if the futures markets remain above that limit for two weeks or if the difference between the price of gas and that of natural gas liquid (which is transported by ship) in international markets exceeds 58 euros for ten days. “It is not about setting an artificial low market price but rather an emergency mechanism to prevent episodes of excessive prices”, has justified the European Commissioner for Energy kadri simson.
“It seems to us that for that reference [de precio] it is better to do absolutely nothing”, warned Ribera on Tuesday, who considers that it is a “exorbitant price & rdquor ;. “We are going to oppose forcefully, emphatically,” he stressed as soon as he learned the terms of the Commission’s plan. In addition, the Spanish Government had already shown its rejection of the proposal to establish a maximum price of 180 euros per MWh for electricity contracts for nuclear, renewable and hydroelectric plants, as it was also too high (the Government had already set a ceiling for electricity contracts). electricity of 67 euros per MWh more than a year ago).