The cap, known as the Iberian mechanism, is in place in Spain and Portugal and aims to subsidize fossil fuel plants' power costs to lower electricity prices. The system is set to expire on May 31.
Reforming the EU's Power Grid
In an interview with TV station Antena3, Ribera stated that the EU's power grid needs to be reformed to reduce price volatility and make electricity cheaper. She added that mild temperatures in autumn and early winter had helped lower prices and support gas storage levels across Europe. Electricity prices in Spain have steadily decreased since they peaked in August, partly due to increased wind energy production. For a few days in October, the gas cap did not apply as prices were below the 40 euros per MWh mechanism trigger price.