Spain has informed the European Commission that a joint price reduction plan with Portugal may entail restricting energy sales to France, El Pais reported on Monday. Madrid is its northern neighbor’s largest single supplier of imported electricity, and the potential restriction comes as the entire EU grapples with soaring energy costs.
Spain and Portugal agreed in late March to cap the price of gas used in electricity generation to the equivalent of 30 euros per megawatt/hour ($32.50). While Brussels granted both countries an exception to its normal rules and allowed this arrangement to go ahead, Madrid and Lisbon then delivered some bad news to Eurocrats.
According to the documents cited by the newspaper, Spain and Portugal will need to impose “some restrictions” on energy sales to France as a result.