Spaniards pay two-thirds less for electricity than Germans. They want to offer the recipe to the whole of Europe

Spaniards pay two-thirds less for electricity than Germans. They want to offer the recipe to the whole of Europe
Spaniards pay two-thirds less for electricity than Germans. They want to offer the recipe to the whole of Europe

The government is looking for a pan-European solution that would bring down unbearable energy prices, and Spain wants to offer one of them. This, together with Portugal, received an exception to capping gas prices for electricity production some time ago, the results are clearly coming, at least in the case of these countries. The Spanish paid 67% less for electricity in August than the Germans, and the French paid even more, writes Bloomberg.

The system of Portugal and Spain was approved by the European Commission in June, and both countries started applying it from mid-July. The measure leads to a ceiling on the price of gas used in the production of electricity at 40 euros (about 980 CZK) per megawatt hour. After six months, the price ceiling will begin to rise by five euros per megawatt hour per month up to 70 euros per megawatt hour.

Any difference between the ceiling and the actual price on the market is compensated by the state, and according to the Spanish media, the measure should amount to more than eight billion euros. However, the government wants to cover them up thanks to a special surcharge that all customers, including households, have to pay on their energy bills and is governed by the amount of consumption.

On the other hand, the extra fees are supposed to cover other concessions for customers, such as a reduction in VAT on energy, a significant reduction in electricity tax or guaranteeing loans for vulnerable households. The measure is also supposed to cover a new fee on the import and export of electricity to France.

The results are coming in. According to Bloomberg, in August, the average price of electricity in the Spanish market was 154 euros per megawatt hour, which was 67% lower than in Germany and even 67% lower than in the French market. On top of that, the compensatory surcharge amounted to 152 euros per megawatt hour on average. Even so, the price was significantly lower compared to other EU countries, by about a quarter, according to the association.

At an informal meeting of EU energy ministers next week in Prague, Spain will propose extending its system of capping electricity prices to the entire European Union, El País newspaper reported. Spain and Portugal got the measures approved, arguing that they form an “energy island” that is largely isolated from other EU markets. However, Spanish Minister Teresa Riberová will offer her EU colleagues in Prague that the system be extended to other EU countries as well.

According to the newspaper El País, her proposal could gain the support of more EU countries than a few weeks ago. On Monday, the President of the European Commission, Ursula von der Leyen, spoke in favor of the reform of the electricity market, and the Belgian Prime Minister Alexander de Croo and the Austrian Chancellor Karl Nehammer also spoke in a similar spirit in recent days. Czech Prime Minister Petr Fiala also spoke about the need for an EU price regulation system, and the head of the Italian government, Mario Draghi, has long supported capping.

The article is in Czech

Tags: #Spaniards #pay #twothirds electricity Germans offer #recipe Europe

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