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Iberian energy price regulation and legal challenges

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2026-10-22 12:51 UTC → 2026-10-23 07:31 UTC · added ~~removed~~

The Spanish government has implemented measures to mitigate rising energy costs by capping quarterly price increases for the regulated Tarifa de Último Recurso (TUR) at 15%. This cap, applied to natural gas, involves a deferred cost of approximately 200 million euros, which authorized suppliers will recover through subsequent revisions starting in 2027. In a separate legal development, the Court of Justice of the European Union (CJEU) upheld the legality of the ‘Iberian exception.’ This mechanism, used by Spain and Portugal to limit electricity prices during the energy crisis, was challenged by five Spanish industrial ~~companies.~~ companies—PGI Spain, Berry Superfos Pamplona, Promens Packaging, RPC Envases, and Zeller Plastik España. The companies argued the measure was discriminatory, particularly regarding exemptions for consumers with fixed-price ~~contracts.~~ contracts signed before April 26, 2022. The court rejected these appeals, affirming the mechanism used to cap gas prices for electricity generation.

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