Spain eyes energy price cap as factories shut down

Bloomberg

Spain plans to set temporary limits on power prices in the coming weeks, in one of the boldest attempts in Europe to stem a surge in energy costs that has forced industries to shut operations and furlough workers.
Ecological Transition Minister Teresa Ribera said she is confident the European Council will give the green light to limits at a March 24-25 meeting and allow her government to enact a “shock package” of measures. If not, Spain will likely move ahead with them anyway.
“If there is no European solution, we would have to consider challenging the European system,” Ribera, who is in charge of energy policy, said in an interview with Bloomberg. “We are not going to allow the Spanish economy, Spanish families and industries to adjust by not consuming and closing down.”
She stressed though that the government’s main aim is to have a common European Union policy.
Months of record electricity prices — stoked in recent weeks by Russia’s invasion of Ukraine — have forced a number of steelmakers, including Acerinox SA and ArcelorMittal SA, to suspend some operations this week in Spain. Such shutdowns are inflicting more pain on the euro area’s fourth-largest economy, which is
already struggling with the highest inflation in more than 35 years. Spanish daily spot power prices reached almost 545 euros per megawatt-hour on March 7, the highest ever.
As part of the package, Spain will also fast-track permit approvals for some renewable
energy projects and bolster help for vulnerable households,
Ribera said.