Last Friday, the energy ministers of the European Union met to agree on new measures to stop the rise in energy prices, which will be in effect from December 1, 2022, until the end of 2023. Despite pressure from some member states to establish a price cap on gas similar to that of the Iberian Peninsula, the measures adopted followed the previously outlined action lines.

The Council agreed to reduce electricity consumption demand by 10%, 5% of which is to be achieved during peak hours. This measure, except for the rest, will be in effect from December 1, 2022, but will only be valid until March 31, 2023, and will allow member states to apply the measures they deem necessary to achieve this goal.

It was also agreed to establish a limitation on revenue for submarginal technologies. The price limit will be €180/MWh for technologies such as renewables and nuclear, which have obtained excessive profits during the last few months given the significant role of coal and gas in setting electricity prices.

Finally, a mandatory and solidarity contribution was established on companies in the fossil fuel sector. This tax will be calculated on taxable profits that have increased more than 20% compared to taxable profits obtained since 2018.