• Among the points on which Nupes wishes to disobey European rules: the freezing of the price of electricity.

    Currently, the EU sets the prices.

  • Spain and Portugal have, according to Jean-Luc Mélenchon, disobeyed the rules and set their own prices.

  • What is it really ?

    20 Minutes

    takes stock.

Among the key points of the campaign of the New Popular Ecological and Social Union for the legislative elections: disobedience to the European Union.

It is mentioned by the candidates for the organic and local canteens, the renationalization of EDF… This time, during the presentation of the program of this union of the left, Jean-Luc Mélenchon mentioned the blocking of the price of electricity .

“Spain and Portugal have just decided to freeze electricity prices.

This is a concrete disobedience to EU regulations, which prohibit such practices.

The EU said: "We understand that in the context, you were disobeying".

I am sure that tomorrow she will understand that in the context we cannot obey certain rules,” he said.

Spain and Portugal have decided to freeze electricity prices.

This is a concrete disobedience to EU regulations.

The EU said: “We understand”.

She will understand that we cannot obey certain rules.#ProgrammeNUPES pic.twitter.com/Mvl5zDwnRH

— Jean-Luc Melenchon (@JLMelenchon) May 19, 2022


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For some, it is impossible: “Spain and Portugal have not blocked prices because it is impossible for the European Union”.

Others say: “The EU is not responsible for anything in electricity prices, that's a lie.

»

20 Minutes

takes stock of what is really going on.

FAKE OFF

The freezing of electricity prices had been mentioned in the presidential election campaign.

Marine Le Pen had estimated that to block electricity prices, it was necessary to leave the European Union.

We interviewed Phuc Vinh Nguyen, researcher on European and French energy policies within the “energy center” of the Jacques Delors Institute, on the subject.

The specialist explained that the EU actually sets the electricity tariffs for its member countries, but that it is quite possible to make exceptions.

“In order for the price of electricity to be capped, validation by the European Commission is required.

This is a temporary cap, for very exceptional situations, he explains.

On this side, the Commission is quite open.

It is also possible to cap the price of gas, which would obviously have an impact on the price of electricity.

In this case, it requires validation by the European Council.

»

And it is exactly an exception that has been authorized for Spain and Portugal.

In mid-May, the two countries approved, by decree, the limitation of the price of gas used in electricity production.

Because as Phuc Vinh Nguyen pointed out, “during peak consumption, gas meets demand, and we therefore need gas-fired power stations, which are expensive to operate.

Thus, the price of wholesale electricity currently depends on the cost of gas.

»

"The Iberian exception" convinced Brussels

This therefore has nothing to do with disobedience to the European Union, since it is the latter which granted the derogation.

The Spanish and Portuguese governments were able to make Brussels recognize an “Iberian exception”.

The discussions and negotiations ran over a month between the institution and the countries.

The two countries have highlighted the lack of interconnections with the rest of the continent, via the Pyrenees, which forces them to operate as an energy island.

This is also what Ursula von der Leyen, President of the European Commission, pointed out when she said that their "energy mix [is] made up mostly of renewable energies and has very few interconnections with the European market. ".

According to the rules defined with Brussels, Spain and Portugal will be able to exceptionally withdraw from the European energy market for at least twelve months.

The objective is to reduce by 25 to 30% the bill for households, SMEs and industries, which have seen their production costs soar since the summer of 2021. The price of gas will be capped at 40 euros per MWh during the six first months, before gradually rising to an average of 50 euros per MWh over the year.

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