Spain, Portugal sign off on plans to temper energy prices

By ASHIFA KASSAM and HELENA ALVES
Associated Press

MADRID (AP) — Spain and Portugal have signed off on a temporary cap on natural gas prices, in a coordinated move described by Portugal’s environment minister as an “unprecedented” bid to temper soaring energy prices and inflation. As energy prices surge across Europe, exacerbated by Russia’s war in Ukraine, Spain and Portugal asked the European Union’s executive arm earlier this year to allow them to skirt the EU’s common-market rules. Citing the large amounts of renewable energy used in both countries and their scant connections with the European power grid, the European Commission agreed to allow a price cap on gas used for power generation, averaging around 50 euros per megawatt-hour for the next year.