The Minister for Ecological Transition for the Central Goverment, Teresa Ribera, confirmed that Spain and Portugal are going to propose limiting energy prices.

They have prepared a joint proposition to put before the European Commission that would put a limit of 180 euros per megawatt/hour on electricity prices.

Such a cap did exist upon the price of electricity on the wholesale market until 2019 which is when a European Directive put a stop to it.

At the present moment, 180 euros per mw/h is 40 euros below what was being charged yesterday (217 euros) and would thus avoid such crippling peaks as 545 euros per mw/h.

However, the position of the European Commision (especially Germany) has been to reject such an idea. The problem is that the E.C. dictates that all electricity, no matter the source, must be charged at the price of the dearest to produce. Nobody has proposed that it be set at the cheapest (solar or wind) but at least that it be set at the average between the cheapest (solar or wind) and the most expensive (gas).

Two years ago the mere thought of paying 180 euros per mw/h was an act of lunacy yet today, it would be a bargain compared to the orbital prices that have been paid.

Spain will wait until it gets an answer back from the E.C. but if it is rejected, the Central Government will do it off their own backs. The Central Government would prefer that there be a majority decision from the E.C. rather than 27 different stances but things can’t go on as they are and Spain will cap the electricity prices one way or the other.

(News: Spain)