Macron wants equivalent to the Iberian exception and for the US to lower gas prices

Macron wants equivalent to the Iberian exception and for the US to lower gas prices
Macron wants equivalent to the Iberian exception and for the US to lower gas prices

“With gas, we will try to achieve at least the same thing that our Spanish and Portuguese friends have achieved” with a maximum price fixing for gas used to produce electricity, which has given “results” in the wholesale market, said Emmanuel Macron, in a speech in Saint Nazaire, where he inaugurated the first offshore wind farm in France.

The French President noted that, thanks to this mechanism, “prices (of electricity) in Spain are now two to three times lower than in the rest of Europe”.

At the meeting of EU Energy Ministers, on 9 September, France proposed to other countries that they extend this “Iberian exception” to the setting of electricity prices, as a way of moderating the escalation that occurred due to the effect induced by the increase in gas prices.

But Macron did not specify today if that will be his position at the summit on the 30th or if he would be satisfied with the application of this “Iberian exception” only to France.

The price of electricity in wholesale markets has soared in France (at the end of August it reached a record of more than 1,000 euros per megawatt) due to the rise in gas prices in Europe, but also due to fears of shortages this winter.

Macron advanced, on the other hand, in a message clearly addressed to the United States, that the Europeans will start talks with their gas suppliers allies to ask them to lower prices.

The United States is becoming the main exporter of gas to the European Union after the sanctions imposed by the European bloc on Russia, until then the largest supplier, following the invasion of Ukraine, and retaliation from Moscow.

For the French president, these EU allies cannot extract gas at low costs and use it in their countries at 30-40 euros per megawatt hour, while “they sell them at 140 or 150 euros”.

According to his analysis, “there are a number of aberrations” in European energy markets, including speculative phenomena, and the consequence is that some industrial activities that are no longer competitive, such as the manufacture of fertilizers, are in danger.

Macron assured that, with the “electricity battle” in the EU, what is intended is to reform the market “so that it is more coherent” and that wholesale prices are not determined by the rise in gas prices, but that “more correspond to the production prices”.

The reform of the electricity market continues to face resistance from some EU member countries, reluctant to abandon the marginal pricing system, which the European Commission itself defended until a few weeks ago.

The article is in Portuguese

Tags: Macron equivalent Iberian exception gas prices

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