Spain can’t keep prices down at home without shutting off exports to its northern neighbor, a major newspaper claims
El Pais reported Monday that Spain told the European Commission that it may be able to reduce energy sales to France through a price cut with Portugal. Spain is France’s largest single supplier of imported electricity, and the potential restriction comes as the entire EU grapples with soaring energy costs.
Portugal and Spain agreed to limit gas prices used for electricity generation at 30 euro per megawatt/hour (32.50). Although the EU gave both countries an exemption from its usual rules, it allowed the agreement to proceed. However Madrid and Lisbon brought some disappointing news to Brussels.
According to documents provided by Spanish newspapers, Spain will have to impose these measures on Portugal and Spain. “some restrictions”France on the result.
Learn more
European Gas Prices on the Rise
An alternative system, originally suggested by Spain, would see electricity being exported to France charged at a greater rate than the one used on the Iberian Peninsula. According to El Pais, officials in Brussels are concerned that this arrangement would breach the bloc’s market rules, and Germany and the Nordic countries are reported to be fiercely opposed to this idea.
According to reports, the College of EU Commissioners will discuss this issue during their next meeting. This usually takes place every other week.
France, despite being a net exporter, imports approximately 34% of its electricity according to data from 2020. Spain is the country that imports most power.
The EU has seen electricity prices rise by 45% in March, and customers are paying more than they did a year ago. Uncertainty over the EU’s decision to embargo Russian gas imports and the shocks that have hit global energy markets due to the conflict in Ukraine are driving the soaring electricity prices. Electricity bills have risen due to skyrocketing inflation in the West.
