The Government wants to limit the price of electricity to 180 euros per MWh. Another thing is that Europe allows it

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Spain already has a measure to try to stop the escalation in the price of electricity. As confirmed by Teresa Ribera, Minister for the Ecological Transition, in an interview in Zero Wave, the governments of Spain and Portugal will present a joint proposal to limit the price of the megawatt hour in the wholesale market at 180 euros per MWh.

This maximum price of €180/MWh is lower than today’s cost, around €217/MWh. And clearly below the price of March 8, when the average was €544/MWh. With this proposed limit, the cost of energy in the wholesale market would have a lower ceiling than what we are seeing these weeks due to the high cost of gas caused mainly by the war in Ukraine.

Spain asks to return to the limit that existed before

The figure of €180/MWh is no coincidence. Is just the limit that Spain had until 2019. However, then a European directive prohibited these caps and established a joint technical maximum at European level of €3,000/MWh.

“If just two years ago it seemed like a madness to us that would never be reached and today it is widely surpassed, it is hardly debatable that it should be the maximum limit that we must accept in our market,” Minister Ribera pointed out.

The EU finally accepts to change the energy system: Spain will be able to set a maximum price without counting gas

We already know the proposal that the Government will take to the European Union. Along the way they will have to convince the rest of the countries, it is not clear that establishing such a price is the solution to the energy crisis.

It is not clear that Spain can convince the European Union. However, the European Commission has left the door open to this possibility. Something that seemed taboo until a few weeks ago.

The position of countries like Germany is that this limit should be applied in the retail market, while Italy’s is to apply a maximum to the price of gas but not to energy as a whole. Europe is aware that it must apply measures to alleviate the escalation of prices, but the solution does not seem obvious.

Before the end of March, Europe is expected to make a decision. However, from the Government they explain that in the event that the European Commission does not agree to regulate energy prices, it “will be forced to make decisions to protect the national interest” because “Spanish society cannot wait”.

In Xataka | How the electricity market works and why, despite the fact that the price sometimes reaches zero, it will barely affect our bill

Spain already has a measure to try to stop the escalation in the price of electricity. As confirmed by Teresa…

Spain already has a measure to try to stop the escalation in the price of electricity. As confirmed by Teresa…

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