Spain increases the gas price limit due to fears of a complete shutdown of Russian gas ,
Prime Minister of Spain Pedro Sanchez .
KYIV. UkraineGate . 7 . September . 2022 | Ukraine News.
Spain will extend a gas price cap for power plants linked to heavy industry amid fears that Russia could cut off all gas supplies to Europe by land or sea. Reuters writes about this with reference to the statement of the Prime Minister of Spain Pedro Sanchez .
Details
Sánchez said the government would temporarily change the rules of the electricity market regarding the use of heat from industrial processes such as the production of tiles, concrete or fertilizers.
Quote
“We will make an exception for large consumers (gas – ed.) so that they are temporarily covered by the Iberian Mechanism,” Sanchez said during a speech in the Senate.
He was referring to an agreement with the European Union that allows Spain and Portugal to subsidize the cost of natural gas in electricity production.
Sánchez said the price cap on gas used to generate electricity had already saved Spanish households two billion euros since mid-June.
He expressed pride that European Union energy ministers will discuss the introduction of the same measure across the bloc on Friday as part of a range of options to curb soaring energy prices.
Stakeholder lobby Acogen said the measure could help reopen 400 idle plants and allow them to compete “on a level playing field.”
Source: Ukrgate