The BOE publishes the Order that establishes the entry into force of the 'Iberian exception' in mid-June

MADRID, 9 Jun. (EUROPA PRESS) -

The Official State Gazette (BOE) publishes this Thursday an Order from the Ministry for the Ecological Transition which sets the entry into force of the so-called 'Iberian exception', authorized yesterday by the European Commission, on June 14.

This measure involves the urgent and temporary establishment of an adjustment mechanism to reduce the price of electricity in the wholesale market by limiting the price of gas.

The start date of this adjustment mechanism has been set at June 14 and on that date the agents will internalize the unit amount of the adjustment for the matching of the daily market that is made for the following day, June 15.

The third vice-president of the Government and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, assured yesterday that this mechanism "is going to be the same" in Spain and Portugal.

In a press conference held at the Ministry, Ribera stressed that, except for "some specific differences, the rules are the same" for both countries, thus ruling out the existence of some asymmetries, such as the fact that in Spain the extensions and renewals of contracts passed to offset the cost of combined cycle plants, while in Portugal only renewal was considered as such, with extensions being exempt.

Thus, the minister stated that Brussels has "fully" supported the mechanism designed and worked on by the teams from Spain and Portugal "in the terms in which it was submitted".

Ribera, who acknowledged that the final approval has been a "complicated and technically difficult" exercise, valued that the decision formally adopted by the European Commission supports "without any change what was published in the Royal Decree-Law".

In this way, he applauded that the green light for this mechanism is "very good news" and is "compatible with all treaties."

"This is an exceptional measure, in an exceptional time and that will allow a much higher level of protection until May 31, 2023 than that of other European consumers," he said.

Ribera recalled that this cap on gas of an average of 48 euros per megawatt hour (MWh) for a year for the generation of electricity, will allow Spanish consumers to save between 15% and 20% of what they paid in the absence of the mechanism.

According to the European Commission, the measure implies a state aid of 8,400 million euros -6,300 million for Spain and 2,100 million for Portugal- aimed at reducing wholesale electricity prices in the Iberian market (Mibel) by reducing costs input from power plants fueled by fossil fuels.