Econostrum | Economic News in the Mediterranean
     

Brussels allows Spain and Portugal to cap fuel prices for power plants


Written by Arthur Maffren on Thursday, April 28th 2022 à 11:30 | Read 239 times


The European Commission has authorised the two countries to limit the price of gas used to produce electricity.


Cheaper electricity in Spain and Portugal from May. Photo BL.
Cheaper electricity in Spain and Portugal from May. Photo BL.
SPAIN/PORTUGAL. On Tuesday 26 April, Teresa Ribera and José Duarté, the Spanish and Portuguese Ministers for Ecology/Environment respectively, received the approval of Brussels to limit the price of electricity for twelve months by capping the price of gas used to power plants at an average of €50 per megawatt-hour.

The agreement is expected to have an impact on the cost of electricity from May. In Europe, for "non-regulated" contracts, it is calculated on the basis of the wholesale price of the raw material, generally gas. However, in Spain as in Portugal, renewable energies account for a significant share of electricity production. Coupling it to the price of gas therefore seems unfair to consumers.

France, thanks to its strong nuclear production, is in a comparable situation.

 



In the same section
< >

Tuesday, May 17th 2022 - 15:55 Suez places €2.6bn in green bonds


   Partners









About Econostrum.info Econostrum.info is an independent media that deals with the daily economic news of the countries bordering the Mediterranean. Economic cooperation, business news by sector (Industry, Services, Transport, Environment, Society/Institutions), thematic files, airport news, airlines and shipping companies (new destinations)... are treated and analysed by a team of journalists present in the Mediterranean basin. Subscribe to Econostrum.info To be the first to know, with unlimited access to all articles. To receive the weekly newsletters and special newsletters sent as soon as our files are published. Automatically renewable subscription, but the reader keeps control of it or yearly subscription. For individuals or professionals...