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Spain And Portugal Is Preparing To Lower Electricity Prices

Spain and Portugal is preparing to lower electricity prices. The governments announced that they have reached an agreement with the EU Commission as of today.

Spain And Portugal Is Preparing To Lower Electricity Prices
Yazar: Eylem Özer

Yayınlanma: 27 Nisan 2022 03:36

Güncellenme: 14 Kasım 2024 06:38

Spain And Portugal Is Preparing To Lower Electricity Prices

The governments of Spain and Portugal announced that they have reached an agreement with the EU Commission to reduce natural gas and electricity prices.

Spain and Portugal is preparing to lower electricity prices. Taking action to limit natural gas prices and reduce electricity bills, the governments of Spain and Portugal announced that they have reached an agreement with the EU Commission as of today. Portuguese Minister of Environment and Climate Change Duarte Cordeiro and Spanish Minister of Ecological Transition Teresa Ribera Rodriguez, who held a joint press conference in Brussels, stated that "After weeks of intensive technical work, a political agreement has been reached with the EU Commission". Both ministers emphasized that the agreement will be reflected in the bills of May after the technical details are completed. While the negative effects of the coronavirus pandemic on the economy continued, Russia's attack on Ukrainian territory on February 24 negatively affected natural gas and electricity prices. Following the developments, the Spanish and Portuguese authorities, which took action to protect consumers, first demanded a limitation of 30 euros per megawatt of natural gas. In accordance with the agreement announced today, it was learned that the natural gas price per megawatt will be limited to 40 euros (less than half of the current price) as a reference, and then this price will be determined as 50 euros for a 12-month period. Spanish Minister Rodriguez, who made a statement on the subject, said, “It was an agreement that is very important for consumers both in the industry and at home. With the exception of the Iberian Peninsula granted by the Council of Europe, it is a system that will help us prevent the electricity price from rising in the spot market due to gas prices, and enable industrial consumers to benefit from this discount. It is a good deal that will protect us against turbulence in the face of rising gas prices in the coming months."
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