Sánchez anticipates "tranquility" in electricity bills when he approves the gas cap

The President of the Government confirms that the Council of Ministers will approve tomorrow the limitation at 40 euros/MWh that will last one year

Jose Maria Waiter

The President of the Government, Pedro Sánchez, has pointed out this Thursday that the mechanism by which the price of gas in the Iberian market will be met "is going to be an important protection and a factor of predictability and tranquility in the face of future rises in international prices of energy in a geopolitical scenario of enormous volatility and uncertainty». He has done so after confirming that the Council of Ministers will meet this Friday in an extraordinary manner to limit that price to around 40 euros/MWh.

In addition, Sánchez has indicated that this mechanism will be valid for the next 12 months, guaranteeing an average price of 48.8 euros. "We will reduce the receipt of families, companies and industries", assured the president during the opening of the conference 'European Recovery Funds: the main projects, in detail'.

The president has assured that the cap will be 40 euros/MWh, compared to the 72 euros that the market marked yesterday or the almost 80 that the average price has marked in the last quarter.

In parallel, the mechanism will also be approved this Friday by Portugal in an extraordinary Council of Ministers, in another example of the "close collaboration and coordination" of both governments. Spain and Portugal sent their joint proposal to the European Commission at the end of last week, after arduous weeks of technical negotiations. This agreement, in line with the decision of the European Council on March 24 and 25, compatible with the treaty and the regulations, will thus allow a temporary mechanism to be put in place, the so-called 'Iberian exception', and provide coverage until the end of next winter.

In addition, all consumers will benefit from this mechanism, immediately, especially those that are indexed to the daily market (spot), those with the regulated rate, the so-called PVPC.

During the day, the president highlighted the shock plan to respond to the economic impact of the war in Ukraine due to the invasion of Russia, for a total amount of 16,000 million that will last until June, of which 6,000 million correspond to direct aid and tax reductions, and 10,000 through a new line of guarantees managed through the ICO.

In addition, he has referred to the minimum bonus of 20 cents on each liter of fuel until June 30, for which the Executive applies a reduction of 15 cents and the oil companies, a minimum of 5.

“There is no difference right now between what is urgent and what is important. We are giving a response to the current situation without neglecting the reforms”, the president remarked.

In this sense, Sánchez has ensured that in the current energy context, Spain can become a European and global benchmark for developing renewable energy. “Spain is very well positioned for this thanks to the Recovery, Transformation and Resilience Plan”, she assured.

Specifically, Sánchez has defended the "determined" commitment to promoting self-consumption by households, the development of offshore wind energy, biogas or green hydrogen.

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