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Sunday, May 22, 2022

Spain imposes a cap on natural gas prices

MADRID ( Associated Press) — The Spanish government approved a plan Friday to try to curb rising energy costs by capping natural gas prices in order, it said, to immediately cut the amount they pay by a third of consumers and 70% of the industry.

As energy prices rise across Europe, fueled by Russia’s war in Ukraine, Spain and Portugal joined forces months ago and asked the European Union executive to exempt them from applying European common market rules.

Given that both countries consume large amounts of renewable energy and have few connections to the European electricity grid, the European Commission accepted that they apply a cap to the prices of gas used in power generation, at an average of 50 euros per megawatt. /hour for the next 12 months.

Spanish Minister for Ecological Transition Teresa Ribera said the measure will protect consumers and businesses at a time when energy price volatility drives inflation to record levels across Europe.

“For the first time they don’t pay the same,” said Ribera. “The measures that are adopted have the fundamental purpose of reducing the extraordinary profits of energy companies to make it easier for the adjustment to benefit us all.”

He said that the Portuguese government will approve the same measures in the next few hours.

The joint plan will go to the European Commission for approval, Ribera said. He added that it will take effect in the coming weeks.

World Nation News Deskhttps://www.worldnationnews.com
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