Portugal and Spain disobey EU regulations which has infuriated the French.

Following Spain and Portugal’s decision to freeze electricity rates, a Clash has arisen, with the deal being described as “a concrete disobedience of EU regulations.” 

Portugal and Spain disobey EU regulations which has infuriated the French.

The European Commission approved an exemption to their regulations last month, allowing Spain and Portugal to split gas and electricity prices for the next 12 months. The decision comes as energy firms throughout the world raise monthly bill rates, with the UK price ceiling climbing by £693 beginning April 1. 

Since last summer, the Spanish and Portuguese governments have been urging Brussels to take action to lower power costs, which have risen dramatically due to rising demand for gas, supply chain concerns, and geopolitical tensions like as the Russia-Ukraine conflict.

The European Commission
Spain and Portugal urge Brussels to cut energy prices.

Typically, EU member states sell energy on a wholesale market based on a system of marginal pricing, which implies that no matter how power is generated, everyone pays the same price. 

“This model provides efficiency, transparency, and incentives to keep costs as low as possible,” the EU Commission said. 

However, owing of their low interconnection with the rest of the world, Spain and Portugal were given permission to circumvent these restrictions and limit pricing at €30 [£25.36] per megawatt hour. 

According to Spain’s Ecological Transition and Demographic Challenge, “All consumers will benefit from this agreement. The Commission has committed to working actively to increase interconnection for the Iberian Peninsula with the rest of Europe.”

However, the political accord has led to questions about other European nations’ ability to set price caps on energy. 

Jean-Luc Melenchon Furious with Spain and Portugal
Jean-Luc Melenchon Furious with Spain and Portugal

On Twitter, Jean-Luc Melenchon, a member of the French National Assembly, wrote: “Spain and Portugal have decided to freeze electricity prices. This is a concrete disobedience to EU regulations.”

“The EU said ‘We understand’. So it will understand that we cannot obey certain rules.”

He went on to say: “In a democracy, the last one to win has the final say.”

“If we win, our programme will be implemented. Nothing will be negotiated with the head of state. When there is a problem, the Parliament will decide.”

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