SPAIN wants the European Commission to extend its temporary cap on prices for gas and coal used by electricity generation plans which is due to end on May 31.

Known as the Iberian exemption, Spain and Portugal have subsidised power production costs to bring down electricity prices in the wake of Russia’s invasion of Ukraine.

Ecologicial Transition minister, Teresa Ribera, told Antena 3 TV on Monday that a request will be made to Brussels for the scheme to run until the end of 2024, subject to Tuesday’s meeting of the Council of Ministers agreeing to it.

Spain’s government estimates the measure has saved €4 billion on electricity bills.

The scheme currently establishes a limit on the price of gas used for electricity production of €40 euros per megawatt hour and applies increases of €5 euros per month until ending at €70 in May.

Though the EU were initially unhappy about the Iberian plan, it last month agreed a cap across the bloc to start in February, but at the vastly higher ceiling of €180 per megawatt hour.

Another rider is that the cap will only kick in when prices go above the maximum for three successive days and if rates are €35 above what is being charged in the global market.

As for Spain, Ribera said: “We would like the gas cap to stay within the lower end of the range, about €45 or €50 euros per megawatt hour and extending it at least until the end of 2024.”

Ribera added that the electricity system throughout the EU needs to be changed to cut volatility in prices and to make it cheaper.

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