Sánchez's government threatens the Commission if its electricity Iberexit does not go ahead
This has led the Spanish government to threaten to veto other Community provisions where unanimity and even reinforced majority voting is required. The Spanish government's threats have come as an unexpected blow to some members of the Commission itself. Why? Because rather than the future of Spain being at stake, it seems that what is at stake is the survival of Sánchez's government.
The Spanish government has even called into question the 'Fit for 55', the European Union's plan for a green transition. A general revision of each country's legislation to reduce gas emissions by 55% by 2030. Not only that: the Spanish government has dropped its veto power if its demands are not met.
Pressured by the agreement with Podemos, Sánchez's government is trying not to implement one of the points of the text that initiated the alliance. That which states: "To make the necessary regulatory changes in relation to the functioning of the electricity market to put an end to the over-remuneration (known as 'benefits fallen from the sky') that certain technologies that were installed in a different regulatory framework receive in the wholesale market".
To avoid implementing an unrealistic solution based on non-existent windfall profits, the government needs the Commission to accept measures aimed at temporarily breaking the single European electricity market.
According to EU sources, it is unfortunate that the Prime Minister has been untruthful in pointing out that electricity companies have 'profits falling from the sky' that do not appear in their profit and loss accounts, nor are they compatible with companies whose prices for 80% of the demand are absolutely fixed.
The European Union's decision will in no way be in favour of breaking the unity of the European electricity market, the principle of equality and the principle of free competition. Electricity companies, which bear the cost of gas, cannot be forced to pay the difference in the reduction in the price of gas itself.
The fact is that, in addition to the false claim that they have extraordinary profits, the Spanish government has proposed a limit on gas of 30 euros to make electricity production cheaper. However, EU sources point out, this makes little sense if the electricity companies themselves are forced to pay the difference to compensate the gas companies. It makes no sense because they will pass this new cost on to consumers and we end up back where we started.
In any case, despite the fact that the arguments against Iberexit are falling apart, the Spanish government has already put on the table its ability to veto almost everything that seems to move in favour of the free market and the principle of market unity.