Winners and losers from the energy crisis: Policy lessons from the Iberian electricity market

Lifestyle

Europe’s recent energy crisis generated large windfall rents for electricity producers. Yet, most EU governments responded with costly downstream measures that left wholesale prices – and producer profits – largely untouched. This column shows that Spain and Portugal charted a different course by intervening directly in the wholesale market, decoupling electricity prices from gas. This substantially lowered consumer bills, with little impact on public funds. Crucially, the intervention provided