The Government has the support of Brussels to control the prices of electricity and gas

the government has the support of brussels to control the prices of electricity and gas

Sumary of The Government has the support of Brussels to control the prices of electricity and gas:

  • The Government has the support of the European Commission for the expected shock plan approved this Tuesday by the Council of Ministers to lower the cost of electricity and gas in the face of the price shock experienced by the European energy markets.
  • Both the Spanish Government and the European Commission have been in contact in recent weeks to face the dramatic increase in electricity prices in Spain, and letters, messages and conversations have been exchanged prior to the announcement of the last Council of Ministers.
  • ”Among other things, the decree, which according to Ribera guarantees the profitability of the companies, will temporarily withdraw (until March) 2,600 million euros from the electricity companies due to the excess income that hydroelectric and nuclear plants receive in the wholesale electricity market.
  • that are benefiting from the historical rise in the price of gas, which is not part of their costs, but pushes up the prices of the so-called pool due to the marginalist design of this market – the price of the most expensive source of energy sets the price price of all – that does not give truce.
  • According to the INE, the escalation has caused final electricity prices to skyrocket in Spain until August by 34.9% year-on-year, although this increase compares with 2020 with the pool at a minimum due to the pandemic.
  • Government sources assure that “Brussels understands and is aware” of this plan and they trust that the community authorities give their approval to some measures that the PP described this Tuesday as “confiscatory” and of “doubtful legality” among allusions to the ” Peronism “.
  • “The Government hopes that other European countries will follow the path taken by Spain, given that, sources from the Ribera department point out, “this is not a situation in Spain and Portugal,” which have their integrated electricity markets.
  • In this sense, the French Government has on the table the idea of ​​expanding the number of people who can access direct aid in the face of these increases, while Greece has announced an energy transition fund of 150 million to offset the increases in the price of electricity.

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