The European Commission announced on Tuesday 25 April that it had authorised the extension of aid measures put in place by Spain and Portugal to reduce wholesale prices in the electricity market in the two countries, the MIBEL (Mercado Ibérico da Energia Eléctrica) (see EUROPE 12968/4).
The European Commission found that the aid was in line with European competition rules and, more specifically, with Article 107(3)(b) of the Treaty on the Functioning of the European Union, under which aid to remedy a serious disturbance in the economy of a Member State may be considered compatible with the internal market. The Commission found that Spain and Portugal did still face a serious disturbance in their economies.
The measures aim more primarily to provide a direct subsidy to electricity producers to help finance part of the input costs of fossil-fuelled power plants in the Iberian Peninsula.
Spain and Portugal had informed the Commission in April 2023 that they wished to extend these measures until 31 December 2023, with modifications that would allow for a transition to the end of the aid.
In particular, the price capping trajectory will be modified on a regular basis to converge with expected gas market prices until the end of the year. (Original version in French by Émilie Vanderhulst)