SPAIN’S Council of Ministers formally approved a price cap on Friday that limits gas prices used to produce electricity.

The 12-month concession granted by the European Union to Spain and Portugal needs a final ratification by the European Commission.

That process could take up to a fortnight, according to Ecological Transition Minister, Teresa Ribera.

Once that happens, the measure will be published in the Official State Bulletin and then kick-in the following day.

Teresa Ribera said: “The cap will start at €40 per megawatt-hour for six months before rising month by month until reaching an average of €48.80 per megawatt hour.”

The electricity wholesale market price is expected to drop to €130 per megawatt-hour, well below the €200 figure that it has been at for the last few months.

The cap will impact on both domestic and commercial electricity users who have their bills linked to a ‘regulated rate’ tariff.

It’s believed that around 35% of domestic consumers- 10 million people- will benefit.

The change will help up to 70% of commercial electricity users.

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