Spain's Energy Price Reduction Plan Entails Cuts in Supplies to France, Reports Say

MADRID (Sputnik) - A Spanish-Portuguese electricity price reduction plan entails cutting energy supplies to France, Spanish newspaper El Pais reported on Monday, citing the document.

According to the paper, Spain sent a document to the European Commission suggesting a division between the electricity consumed in the Iberian Peninsula and that exported to the EU market. Madrid and Lisbon expressed the need for "some restrictions" in certain segments of the energy market.

El Pais further reported that the European authorities are concerned about the possibility of undermining the single European energy market with such measures, while Germany and northern European countries openly argue against them.

The European countries have not been able to reach a consensus on the matter, and the issue will be considered at the next meeting of the College of EU Commissioners.

In late March, Spain and Portugal proposed to cap gas prices at 30 euros per megawatt/hour ($32.5) for power plants; however, the issue has not been agreed upon and will be discussed as a separate item on the agenda in Brussels.

Since the end of February, the cost of gas on the European market has been showing strong volatility against the backdrop of the Russian military operation in Ukraine. In early March, fears of possible ban on the purchase of Russian energy resources in Europe sent gas prices spiking beyond historical highs for four days in a row, reaching a peak of $3,892 per 1,000 cubic meters on 7 March. Throughout March, energy prices in the EU spiraled up 45% from a year earlier.