The government of Spain will ask the European Union extend the cap on the price of electricity, in a measure known as the “Iberian exception”.
The “Iberian exception” is a mechanism that applies a ceiling to the price of gas for the generation of electricity, in order to lower the cost of electricity, something that is currently implemented in Spain and Portugal.
The Minister of Ecological Transition and the Demographic Challenge, Teresa Ribera, told the Antena 3 channel that the government will ask Brussels to extend the measure: “We want to continue to benefit from this exceptional measure that we have been applying in Spain and Portugal and that, in principle It is only valid until the month of May.
The Iberian exception has been applied since June 15 and during the first six months of validity of this measure, the price of gas reached 40 euros/MWh. From there, will increase by five euros/MWh per month until next May, when the validity ends.
“So yes, we intend to request that, until the European regulation has been modified, the application of that Iberian solution can be extended”, at least “until the end of the year 2024″added the official.
The price of electricity is set in the European markets by the principle of “marginal cost”, in which the most expensive energy in the system determines the price of the others.
The “Iberian exception” has served to lower the prices of light in Spain and Portugal a lot in recent months.
(YO)
Source: Eluniverso
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