The Iberian exceptional regime that will set a maximum price for natural gas used in electricity production plants will come into force in the market starting this Wednesday.
In a statement released on June 8, the Ministry of the Environment and Climate Action stated that the Iberian mechanism that defines an exceptional regime for the setting of prices in the Iberian Electricity Market (MIBEL) has effects on the electricity market June, 15
Exceptionally, the mechanism arises as a result of rising prices in the gas market [em máximos históricos]with direct consequences on electricity prices,” he said, indicating that “the measure will be in force until May 31, 2023, encompassing the period of highest electricity consumption.” [outono e inverno]”.
Bruxelas aprova teto ibérico no gás até maio de 2023. Impacto em Portugal será de 2,1 mil milhões
Thus, “during this period, a average maximum price of 48.75 euros per megawatt hour of natural gas used in thermoelectric plants for the production of electricity.
According to the executive, the objectives of this mechanism are “to limit the escalation of electricity prices and protect those most exposed to spot market prices (SPOT), also benefiting other electricity consumers as they renew their supply contracts. ”.
“The Iberian mechanism is the result of close collaboration between the Governments of Portugal and Spain, aimed at decoupling the price of natural gas from the formation of electricity prices in the MIBEL, as a consequence of the recognition, by the EC , of the Iberian specificities, namely, the Reduced electricity interconnection capacity to Continental Europe“, concluded the government.
Costa and Sánchez highlight a long way to go to approve the price mechanism for Iberian gas
That day, the European Commission approved the Iberian temporary mechanism to limit the price of gas in electricity production until 2023, budgeted at 8.4 billion euros, of which 2.1 billion euros correspond to Portugal.
The European Commission has approved, under EU state aid rules, a Spanish and Portuguese measure worth €8.4 billion aimed at reducing wholesale electricity prices in the Iberian market by reducing electricity production costs. power plants powered by fossil fuels”, said the community executive. in a sentence.
According to Brussels, the mechanism will be in force until May 31, 2023, which implies support from the Portuguese State of 2,100 million euros and from the Spanish State of 6,300 million euros in payments through direct subsidies to electricity producers. in order to finance part of its costs. with fossil fuels, since in the current configuration of the European market it is the price of gas that dictates the price of electricity.
Source: Observadora
