TRUE OR FALSE. Lower energy prices in Spain and Portugal: have these countries disobeyed European rules?

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In Spain as in Portugal, gas and electricity prices are currently limited to 40 euros per megawatt-hour. Have the two countries disobeyed European rules on energy, as claimed by Jean-Luc Mélenchon and La France insoumise? Response elements.

Recently, the Iberian Peninsula has freed itself from European market prices in terms of energy. In Portugal as in Spain, gas or electricity prices are, for the moment, limited to 40 euros per megawatt hour, then 50 euros within a few months.

The reactions of La France Insoumise were not long in coming, whether from Jean-Luc Mélenchon or Adrien Quatennens, the term “disobedience” to European rules was mentioned.

Spain and Portugal block the price of energy. My proposal since September. More efficient than Macron checks. Single price ceiling in Europe, when is it????

— Jean-Luc Melenchon (@JLMelenchon) May 13, 2022

Wanting to fight against the dazzling rise in prices linked to the war in Ukraine, have the two nations really “disobeyed” to the chagrin of other countries who are seeing their inflation explode? No.

  • A derogation granted by Brussels

Madrid and Lisbon have not chosen to stand apart without consulting Brussels. The situation in which the two nations find themselves is the result of a derogation and acts as a “special regime” and “temporary”. It was therefore after a series of negotiations that they were finally able to claim a reduction in their gas and electricity prices over a period of just one year.

The energy bills of Spaniards and Portuguese should therefore decrease by 25% to 30%, which will not be the case in France or in other EU countries.

  • Why Spain and Portugal in particular?

If the European Commission has given the green light to these two countries in particular, it is in view of their “special situation” and their “energy mix composed mainly of renewable energies and with very few interconnections with the market European” confirms Ursula von der Leyen, President of the European Commission.

For her part, the Spanish Minister for Ecological Transition, Teresa Ribera, announced that “this political agreement with the commission” made it possible to “reinforce the protection of consumers who have a higher level of exposure to the evolution of the wholesale”.

  • What sanctions in case of “disobedience”?

Not all countries comply with the rules set by the European Union, some to higher degrees than others. In 2020, almost 900 infractions have been identified.

States not complying with EU law may receive financial penalties. These may vary according to “the importance of the rules violated and the impact of the infringement on general and particular interests”, “the period during which EU law has not been applied” or even “the country’s ability to pay, guaranteeing the deterrent effect of the fine”.

These sanctions apply after a formal notice sent by the EU, leaving the country concerned several months to adapt to European law. Spain or Portugal are therefore absolutely not concerned by these measures because their reduction in energy prices is completely legal.

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