Spain agrees with the European Commission to put a cap on the price of gas



The Minister for the Ecological Transition and the Demographic Challenge of the Government of Spain, Teresa Ribera

(26-4-2022) Spain and Portugal have reached a “political agreement” with the European Commission to put a cap on the price of gas for the next 12 months. This measure is expected to contain the recent increases in energy costs.

The energy crisis could have its days numbered. Spain and Portugal have reached an agreement with Brussels to put a limit on the price of gas, which would be around 50 euros per megawatt hour and will last for one year. This measure is designed to also lower the price of electricity, which has skyrocketed as a result of the war in Ukraine.

The fourth vice president and minister of Ecological Transition, Teresa Ribera, has met with her Portuguese counterpart, José Duarte Cordeiro, and the vice president of competition, Margrethe Vestager, to unravel the long-awaited agreement that will give oxygen to the two countries. “We have reached a political agreement with the European Commission,” said Ribera after the meeting.

The agreement must be ratified in the Council of Ministers next week. The intention of the Spanish Executive is “to implement it immediately”. Based on the agreement reached, the gas reference price will be set at around 40 euros/MWh and will set an average price of 50 euros/MWh over the 12 months it is in force. Spain had proposed limiting the maximum price of gas to 30 euros per megawatt hour.

This announcement is a great relief for sports centers with swimming pools, as they are facilities with high energy consumption. Many gyms and clubs denounced in recent weeks the unilateral termination of energy contracts by energy marketers, something that sent them to the free market.

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