Spain Presses EU on Lower Gas Price Cap to Ease Power Crunch
- Brussels seeks higher level than earlier proposed EU30/MWh
- Spain says ceiling above EU50/MWh will not curb inflation
Workers inspect pipework at the Enagas SA storage and distribution hub at the Port of Barcelona in Barcelona, Spain.
Photographer: Angel Garcia/BloombergSpain warned Brussels that if a cap on natural-gas costs to generate power is set too high it won’t help ease the highest inflation in 40 years, which has shut down factories and sparked street protests.
Negotiations with the European Commission on the exact level is underway and are expected to be concluded next week, according to a senior official familiar with the discussions. A proposed cap of 30 euros ($32.55) per megawatt-hour is seen as too low by the commission, while Spain argues that over 50 euros will be ineffective in tackling prices, said the official, who asked not to be identified because the talks are confidential.