Spain will ask Brussels to extend the Iberian exception at least until the end of 2024 | Economy

The Third Vice President of the Government and Minister for the Ecological Transition and for the Demographic Challenge, Teresa Ribera, advanced this Monday that the Spanish Executive will ask Brussels to extend the so-called Iberian exception at least until the end of 2024, with a ceiling similar to the current one, of between 45 and 50 euros per megawatt hour (MWh). The Iberian exception, which has been applied in Spain and Portugal since June 15, is a mechanism that caps the price of gas for electricity generation in order to lower the price of electricity.

During the first six months of this measure, the price of gas was capped at 40 euros/MWh and from there, it will increase by five euros/MWh per month until next May, when the validity of the solution ends. iberian. Ribera, in statements to Antena 3, stressed that until the reform of the regulation of the electricity market in Europe takes place, which may take “a long time”, Spain “wants to continue benefiting” from the so-called Iberian exception. “We are going to present to the Commission proposals for the modernization of the electrical system, but also the extension of the Iberian exception, beyond May 2023, until this crisis lasts and until the European regulation has been updated (… ) We would like [el tope al gas] it will remain in the lowest possible environment, 45 or 50 euros per MWh, and that it can be extended at least until the end of 2024”, he indicated.

The third vice president explained that the “ups and downs” in the price of electricity depend a lot on how much gas is needed to produce, so that when there is a lot of renewable energy generation, prices fall, but when more gas is needed to produce electricity , prices rise.

Ribera has insisted on the need to modify the European electricity system to reduce the volatility in the price of electricity and make it cheaper. In Spain, he has pointed out, it has been achieved in part with some of the measures adopted, such as tax cuts and the Iberian solution. In this sense, Ribera is confident that these measures, together with the debate on the modernization of the European electricity system, will contribute to giving “stability” to prices throughout this year.