May 18, 2022

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The Iberian press refuses to sell cheap gas to France and Morocco

Despite European guarantees to Spain to control the price of gas producing electricity, the Iberian press is concerned that these lower prices set by Brussels will benefit France and Morocco. The state does not want the idea that it can buy cheap gas.

If the idea of ​​Spain and Portugal was to create two gas markets, one with local consumption subsidy and the other with market prices similar to other parts of Europe, the proposal was considered unreasonable at the European Commission level. The energy crisis in Europe, especially in Madrid, has prompted calls for energy purchases in the European Union.

Spain and Portugal have asked their two countries in their proposal to mitigate the impact of rising global gas prices on fuels (approved by the European Commission to subsidize the production of production plants using gas, coal and co-production plants) to offset the increase in their fuel prices.

As the world is in an energy crisis, Madrid wants to charge lower local gas prices and resell energy at higher prices. But Brussels rejected the idea that Spain would work better.

“The Spaniards will pay 2,100 million to France and Morocco to access the gas limit,” says Vozpopuli, a Spanish site, which estimates the cost of this denial from Brussels, which would allow Spain’s neighbors to buy gas at the same price.

The site, which believes Europe is “forcing Spain to maintain power exchanges with France and Morocco”, predicts that the indirect impact will “increase the maximum potential for exports to neighboring countries.”

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The subsidy to reduce gas consumption prices should be judged to “have a gravitational effect on neighboring countries”.

The Department of Energy hopes that the agreement negotiated with Brussels will immediately reduce the cost of plants producing fossil fuels, resulting in a reduction in the market price of electricity in Spain.

Export capacity to France in 2021 was 20.9 terawatt hours (TWh), of which 7.8 TWh was exported, while imports were 14.1 TWh, and the media did not accept that France was enjoying the same benefits.

According to forecasts, production of gas and coal-fired power plants in Spain will increase by 27.1 TWh, which will offset the increase in exports to France, the same source points out.

To estimate that Morocco could also take advantage of the situation as total electricity prices would be subsidized and 6.9 TWh of electricity would have to be purchased, estimates that prices in Spain would be “much lower than its own variable production costs”.