After almost nine hours of discussion, significant tension and the twenty-seven notably divided, the President of the Government of Spain, Pedro Sánchez, and the Portuguese Prime Minister, Antonio Costa, obtained this afternoon in Brussels the green light from the European Council so that both countries take extraordinary measures to control electricity prices.
This was confirmed by the President of the European Commission who highlighted the particular situation of the Iberian Peninsula, which has few interconnections which would limit the impact of these measures, such as price limits, on the internal market. That is why the EU agrees that special treatment be given to these countries. But the community executive will have to study the plan before it is launched, according to the Council’s conclusions.
Sánchez and Costa presented the plan at a joint press conference. “Spain and Portugal, starting today, will be able to implement exceptional measures, limited in time, to reduce electricity prices for our consumers, our industry and our companies,” assured the President of the Government.
It won’t be from today. Both executives will present the proposal next week and von der Leyen’s team will examine it urgently, before making a final decision. A plan that involves introducing limits on the price of gas for electricity producers and this can be perceived in the electricity bill. “This is going to mean a drop in prices,” Sánchez said, “we are committed to responding urgently to act immediately.”
Although the Commission recognized the peculiarity of the Iberian Peninsula, the measure opens the door for other countries of the European Union to propose their own price reduction systems, which represents a victory for all the countries that, like Spain, requested a market intervention in the face of the energy crisis.
important steps
Diplomatic sources recall that the negotiation that launched the common energy market took decades. They insist that months ago, having this discussion was a taboo; the measures proposed by the south, unthinkable; that there was even a European response to a market in which national players dominate, almost impossible; the support of the countries that have been least affected by the issue and that continue to deny the matter, a chimera.
The agreement is a minimum agreement, but it is a very important step. to try to influence the price; and the twenty-seven open the door for Portugal and Spain to introduce temporary and specific measures to limit prices.
With a view to the May package of energy measures to move towards the disconnection of gas from Russia, the Commission will study the possibility of decoupling the price of electricity from the price of gas, as requested of Spain, or introduce limits to the prices generally. Also the proposal to apply a special tax to the extra benefits that the electricity companies are receiving as a result of the crisis. But it will do so after consulting with all the actors involved in the process the potential impact of a market intervention measure of this caliber. It is not a firm decision, although it was not the objective.
The Commission needed the political mandate of the EU countries to continue moving in the direction that the leaders will send. The truth is that the process is lengthened again. Although Brussels will deal with urgent matters, they will not be immediate measures. But the step is important.
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