“The President of the Republic promulgated the Government diploma that establishes an exceptional and temporary mechanism for adjusting the costs of electricity production within the scope of the Iberian Electricity Market (MIBEL)”, informs a note published on the Presidency’s website. da República.
The enactment takes place after Portugal and Spain have today given the green light to the Iberian pact in order to curb gas prices.
The Minister of the Environment and Climate Action, Duarte Cordeiro, announced at the press conference that followed the extraordinary Council of Ministers that took place this Friday, that Portugal and Spain had finally, and simultaneously, given the green light to the joint mechanism between the two countries that will make it possible to stop gas prices at 50 euros per MWh for the production of electricity.
The measure will have an impact mainly in the next autumn and winter, to limit prices to that electricity is sold to households and businesses, which will be the main beneficiaries. The math is done: “If the mechanism had already been in place in the first quarter of the year, we would have had an 18% savings in electricity prices”.
“So far we have had the average gas price at 96.31 euros per MWh, reaching a maximum of 300 euros in March, during which time gas marked the price of electricity in 89% of the hours. MWh, with maximum hours of 350 euros in February and 651 euros in March”, revealed the minister.
However, if the mechanism were in place, the maximum values for gas would be 50 euros per MWh and for electricity 188 euros per MWh. Looking at this Friday, the price of gas is at 82 euros per MWh and electricity at Mibel at 203 euros per MWh.
“This is an unprecedented and historic, temporary and exceptional measure, adopted simultaneously by two countries and which dissociates the impact of the gas price on electricity prices”, said the minister in press conference.