The common belief that the electricity market in Europe is untouchable has finally been dispelled as an emergency meeting of all 27 members has been called for September 9 to consider a reform of the market and/or an intervention to tackle the historic rise in prices.
Electricity prices have gone through the roof and have been described as “unstainable” by the President of the EU Commission.
If Putin turns off the tap on Russian gas to Europe in autumn/winter, as expected, the already high inflation will go through the roof all over Europe.
Europe are looking for a “green solution” to the energy crisis and an “emergency intervention” intended to limit prices short term.
In the long term the aim is to break the link between the price of gas and the price of electricity as the EU Commission considers the price of gas is the principal single factor in the rise of electricity prices.
The “Iberian solution”, which puts a ceiling on the price of gas in Spain and Portugal, and is currently being considered as a solution all over Europe, has kept electricity prices down to 36% than France and 41% of Italy. However, the price of electricity in Spain and Portugal today, August 30, is a massive 476.39 euros.
The EU proposal for an emergency intervention to lower the price gas and thus of electricity is expected in a few weeks.
The structural reform of the electricity market may not take effect until early next year.
In the meantime, consumers and businesses in Spain await their electricity bills with dread!
Watch this space!!!
