Iberian Mechanism extended until the end of 2023

The Portuguese and Spanish Governments were given informal approval of their proposal to extend the Iberian Mechanism until 31 December 2023 by the European Commission on Monday evening. 

The proposal given the green light by Brussels envisages that the exceptional and temporary mechanism to adjust the costs of electricity production with an impact on setting electricity prices in the Iberian Electricity market, initially to run until 31 May, will continue in force until 31 December 2023. 

The proposal maintains the initial goal of this measure (to cap the price of natural gas used to generate electricity) but includes a new progression of the price of gas used to generate electricity – from the €55/MWh at the start of March up to a maximum of €65/MWh in December, thereby representing a monthly increase of €1.10/MWh, under the following terms:

Read the statement