Price control in the Iberian Electricity Market (MIBEL)

In May 2022, the Portuguese and Spanish Council of Ministers simultaneously approved a one-year price mechanism for reducing wholesale electricity prices on the Iberian Electricity Market (MIBEL). 

The "Iberian Mechanism" aims at limiting the cost of fossil-fuel plant power production. Electricity producers are compensated for the difference between market prices for natural gas and a gas price cap. This cap is set at EUR 40/MWh in the first 6 months, before its level increases by EUR 5 per month, eventually reaching EUR 70/MWh .

The European Commission approved in June this exceptional and temporary measure. 

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