By Alonso Soto and Kailey Leinz, Bloomberg News
MADRID/NEW YORK
EnergiesNet.com 04 22 2022
A limit on the price of gas used to generate electricity could reduce Spain’s energy bill by half, Economy Minister Nadia Calvino said on Friday.
Spain is currently in talks with the European Commission on the exact level of the price cap that aims to wrestle down inflation in the southern European nation from a near four-decade high.
Depending on the hour of the day and marginal technology, the cap could “bring the energy bill around 50% down, and that will have a very direct impact on prices,” Calvino said in an interview with Bloomberg TV.
Madrid has warned the Commission that a reference price above 50 euros per megawatt-hour will be ineffective in tackling prices, according to an official who spoke on condition of anonymity. Spain and Portugal have jointly proposed a limit of 30 euros ($32.55) per megawatt-hour, which the Commission sees as too low.
Soaring energy prices, exacerbated by the war, have dented consumption and halted output at some energy-intensive industries. Despite the headwinds, Spain will be one of the fastest growing major economies this year and in 2023, Calvino said.
Calvino said her government plans to announce updated macroeconomic projections next Tuesday.
bloomberg.com 04 22 2022
