Wholesale electricity market gas prices will go from €90 to around €50 in May to benefit Iberian customers, according to a “political agreement” with the European Commission, Spain and Portugal announced on Tuesday.
The agreement, which has yet to be made official, will last 12 months and starts with an average gas price of €40, to stabilise at around €50 on average, Madrid and Lisbon announced, EURACTIV’s partner EFE reported.
Spain’s Ecological Transition Minister Teresa Ribera, on Tuesday (26 April), expressed her satisfaction with the “ad hoc” agreement and stressed that “the main objectives (of it) have been achieved”.
Formal notification and agreement details will be sent to the European Commission “before the end of the week,” Ribera added. Next week, it will be submitted for approval to the Spanish Council of Ministers.
Spain and Portugal announced the agreement after holding a meeting in Brussels with European Commission Vice-President for Competition Margrethe Vestager.
In March, the European Council approved an “Iberian exception”, paving the way for both countries to take special measures and avoid the impact of extremely volatile gas prices on electricity bills.
Madrid and Lisbon obtained the exemption because both nations enjoy a high level of renewable energy production but suffer from a “very low” level of energy interconnections with the rest of the EU.
Spain is often described by many experts as an “energy island” compared with the rest of the EU.