Electricity price: what the Iberian price cap does – economic policy

Electricity prices have been rising steadily since mid-2021. The Russian invasion of Ukraine and the associated energy crisis have exacerbated the trend. Spain and Portugal counteract this with an electricity price brake. The two countries have capped the price of electricity generated from gas since mid-June. “Iberian exception” is the name of this regulation, which Madrid and Lisbon wrested from Brussels.