12 months later: the Iberian energy market exception

In June 2022, the European Commission allowed Spain and Portugal to decouple the price of gas from that of electricity for 12 months. Worried about the impact of skyrocketing power prices on their consumers and economies, the two countries had argued that they should be allowed to cap gas prices in the power sector given their limited energy interconnections with the rest of Europe, low gas dependency on Russia, and high share of renewables. Over the past 11 months, this so-called Iberian exception has allowed Iberian power prices to diverge from other European prices. The measure has had some positive […]