Spain, Portugal sign off on plans to temper energy prices

Spain and Portugal have signed off on a temporary cap on natural gas prices, in a coordinated move described by Portugal’s environment minister as an “unprecedented” bid to temper soaring energy prices and inflation

MADRID -- Spain and Portugal on Friday signed off on a temporary cap on natural gas prices, in a coordinated move described by Portugal’s environment minister as an “unprecedented” bid to temper soaring energy prices and inflation.

As energy prices surge across Europe, exacerbated by Russia’s war in Ukraine, Spain and Portugal joined forces earlier this year to ask the European Union's executive arm to allow them to skirt the bloc’s common-market rules.

Citing the large amounts of renewable energy used in both countries and their scant connections with the European power grid, the European Commission agreed to allow a price cap on gas used for power generation, averaging around 50 euros ($52) per megawatt-hour for the next 12 months.

Spanish Minister for Ecological Transition Teresa Ribera said the measure would protect consumers and businesses as Europe grapples with volatile energy prices that are driving record inflation.