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Brussels is currently capping gas prices until December compared to Spain’s 2024 proposal.

For now, Brussels has ruled out Spain’s plan to extend until 2024 the Iberian mechanism, which allows capping the price of gas used to produce electricity. This was conveyed by European Commission Vice-President Margrethe Vestager to Third Vice-President and Transitional Environment Minister Teresa Ribera last Wednesday, when she traveled to the Community capital with her Portuguese counterpart to discuss the mechanism’s expansion. . Spain and Portugal differ on its duration: the Portuguese government wants to extend it until December 2023, while Pedro Sánchez wants to extend it until the end of next year.

Although Spain and Portugal have not officially submitted a request, which is a necessary step for the European Commission to respond, the vice-president of the society gave them hints about the deadline that would be possible: “The commissioner said that the support measures due to the war in Ukraine will last until December 2023. Accordingly, and until the EU changes this interim framework for assistance to Ukraine, the extension of the Iberian solution must comply with this interim framework.”

That’s how the Teresa Ribera-led department explains it, where, in any case, they believe that this is not the final slam until “this temporary framework for aid to the war in Ukraine is extended.” “Therefore, the final extension of the Iberian solution will also be extended,” they explain.

In addition, they are optimistic that the Iberian mechanism, which allows Spain and Portugal to have lower prices, will no longer be needed if an agreement is reached in the coming months to reform the electricity market, which is currently very green. . However, the government believes it is “entirely possible” that the deal will be closed during Spain’s EU presidency, which starts in July 2023 and ends on 31 December 2023. So far, Spain has already sent a reform proposal to Brussels.

Spain and Portugal have already started planning the future of the Iberian solution after the mechanism was approved last June, with an expiry date of May 31, 2023. According to the government’s calculations, after its entry into force, this means savings for families, industry. and 4,577 million euros to companies. At the moment, negotiations are taking place at a technical level, according to the Ministry of Ecological Transition, outside the ministerial meeting with the Commissioner last Wednesday.

Source: El Diario





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