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France supports expanding the "Iberian mechanism" to the rest of the EU to lower electricity prices

BRUSELAS, 30 Sep.

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France supports expanding the "Iberian mechanism" to the rest of the EU to lower electricity prices

BRUSELAS, 30 Sep. (EUROPA PRESS) -

The French Minister for Energy Transition, Agnès Pannier-Runacher, defended this Friday in Brussels the need to extend to the rest of the European Union the "Iberian mechanism" by which Spain and Portugal can limit the price of gas for electricity generation and thus contain energy prices.

"I know that there is reluctance about this mechanism, but we have worked technically. We can do to prevent it from causing excess gas consumption and we know that it can be put into operation very quickly," the minister told the press upon arrival at a meeting of EU energy ministers.

Pannier-Runacher has insisted that the system known as the 'Iberian exception' is "the type of signal that European companies need in the current context and therefore has trusted that the community bloc will work" in that direction.

The French minister has thus supported the bet of an Iberian mechanism "extended to the whole" of the European Union because with it, action could be taken to reduce the price of electricity "quickly".

The ministers meeting in Brussels have reached a political agreement to implement urgent measures to contain prices in the European Union's energy market, for example with a 5% reduction in electricity consumption during peak hours, a tax on companies of fossil fuels and a ceiling of 180 euros/Mwh for inframarginal energy sources in the wholesale market.

They also have on the agenda to discuss the latest working document presented by the European Commission to move towards other initiatives that generate more doubts and require more work for consensus, including generalizing throughout the EU a system similar to the one already applied in the Iberian Peninsula .

"Based on the experience of the Member States, the Commission is willing to discuss the development of a temporary European framework to limit the influence of high gas prices in the formation of the price of electricity", indicate the community services in their casual proposal.

"One option could be to limit the price of gas in electricity generation to a level that helps reduce electricity prices without leading to higher gas consumption. The cost differential between cap and market prices will be borne by the electrical system in the Member States", explains the document, which does not expressly mention the Spanish-Portuguese model.