Spain opposes gas cap proposed by Brussels


Madrid.- The Third Vice President and Minister of Ecological Transition and Demographic Challenge, Teresa Ribera, has shown her rejection of the emergency gas cap proposed by the European Commission (EC), which sets the maximum price at 275 euros per megawatt hour (MWh) in the event of exceptional episodes.

“We will oppose strongly, categorically. It seems to us that for this reference it is better to do nothing at all”, denounced Ribera during his speech during the government control session held this Tuesday in the Senate.

The price proposed by the Commission, which Spain rejects, contrasts with the limit set with the so-called “Iberian mechanism” in Spain and Portugal, which since June 15 has limited the price of gas for the production of electricity in a range of between 40 and 70 euros/MWh for twelve months.

After appearing in the halls of the Senate, Ribera reiterated his criticism of the Commission, assuring that the proposal “does not solve anything” and does not comply with what member states have asked for.

“I don’t think it’s something that can resolve the situation,” Ribera said, while warning of the possibility of this measure “flying away” into greater speculation and a selling price.

Proposal to limit “excessive price levels”

The Commission’s bill, which will be discussed this Thursday at an extraordinary Energy Council in Brussels, is not intended to establish an “artificially low” price, according to the European Commissioner for Energy, Kadri Simson , but to prevent “excessive price levels”.

If approved, the cap will apply from 1 January 2023, provided that one-month forward prices exceed 275 euros/MWh on the TTF reference market, and provided that this increase shows a difference of more than 58 euros compared to the reference price of liquefied natural gas (LNG) for ten consecutive days.

Concerning Thursday’s meeting during which the gas cap will be discussed, Ribera believes that the Commission will meet “firm opposition from an immense majority of member states”.


Please enter your comment!
Please enter your name here