The Government will approve today in an extraordinary Council of Ministers the Iberian mechanism to limit the price of gas in the production of electricity.
The special regime will make it possible to fix the average price of gas in 50 euros per megawatt against the current reference price on the market of 90 euros.
At the end of April, the governments of Portugal and Spain reached, in Brussels, a political agreement with the European Commission for the establishment of a temporary mechanism (12 months) which will allow to fix the average gas price at 50 euros per MWhagainst the current reference price on the market of 90 euros.
This measure will make it possible to temporarily decouple gas and electricity prices in the Iberian Peninsula, which will thus benefit from an exception, given that, in the current configuration of the European market, gas determines the global price of electricity, since all producers receive the same price for the same product – electricity – when it enters the grid.
The Minister of the Environment, Duarte Cordeiro, estimated that setting a ceiling on the price of gas for electricity production would allow savings of up to 18% compared to the average price of the first four months of the year.