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European Commission finalizes its 'green light' to the mechanism that Spain and Portugal are preparing to intervene in the electricity market although it still has "technical doubts" that are unresolved. The Competition Directorate
plans to send a letter of conformity today so that the Spanish and Portuguese governments can process the mechanism for limiting the price of gas used for electricity generation, sources familiar with the negotiations explain to EL MUNDO.
This would enable the vice-president for Ecological Transition, Teresa Ribera
, to take the measure to the Council of Ministers tomorrow, something she herself has not ruled out in an interview granted this Monday on La 1. Official sources in her ministry, however, do not confirm that the mechanism will be approved tomorrow, which would further delay its implementation after more than a month of technical discussions with Portugal and the European Commission.
Technicians from Madrid, Lisbon and Brussels have been working flat out on the proposal throughout the weekend and this Monday morning, despite today being a holiday at the Commission. The approval, in any case, would not be definitive since European sources still see some "technical doubts"
about the application of the mechanism that they would like to address in a meeting at the end of this week. "There is still a lot of documentation to be analyzed before making a final decision," they tell this newspaper. This situation could mean that, although the mechanism will go to the Council of Ministers tomorrow, its application will be delayed until the final approval of the European Commission is obtained.
The measure would allow Spain and Portugal to limit the price of gas used in electricity generation to reduce its impact on the marginal market. The political price of gas would be around 50 euros for a year,
compared to the 90 euros per megawatt hour at which it is quoted on the international market. This would reduce the cost of electricity in the wholesale market to around 150 euros per megawatt hour, below the average of around 210 euros recorded by this market so far this year.
The Government trusts that this measure will help to reduce the price of electricity for 10 million domestic consumers
subscribed to the regulated PVPC tariff and for large industry that is supplied directly on the wholesale market. In this way, the electricity bill will take a breather and will stop putting upward pressure on the CPI.