Anti-dumping measures sought by the French aluminium industry over Spain's cheap electric supply

In response to rising energy prices, Europe's aluminium plants started shutting down, while Russia and China increased imports. The Iberian gas price cap, supported by the EU, is allegedly causing unfair competition, according to representatives of the French aluminium industry, who are also seeking anti-dumping actions against Spain. The agreement is temporary and will take effect until May 31, 2023.

With the European Commission, Spain and Portugal agreed to exclude the Iberian Peninsula from the EU's power market regulations in the spring. The deal established a temporary mechanism limiting the gas price to an average of €50 per megawatt-hour until the end of May, slashing power prices for many Spanish and Portuguese consumers in half.

The EU executive approved the measures, stating that they will lower costs for Iberian consumers while "minimising competition distortions" and "affecting trading circumstances to an amount detrimental to the common interest." The French aluminium industry, though, disagrees.

As a result of the measures, and particularly for aluminium used in the building industry, "French customers go to Spain for supplies," said Cyrille Mounier from the Aluminium France Federation. To stop what he considers unfair competition inside Europe, Mounier calls for "anti-dumping actions against Spain."

Anti-dumping measures are border controls imposed on imports of goods from exporters when their dumping harms domestic producers of the goods or foreign exporters of those goods. Teresa Ribera, Spain's Minister for Ecological Transition, said she was unaware of the allegations.

She added that the price of Russian gas prior to the war and the French government's participation in the power market contributed to the reduced energy expenses of the German electro-intensive sector. The so-called ARENH plan, which offers industrial producers in France regulated access to less expensive nuclear energy at a fixed price of €42 per megawatt-hour (MWh), supplies them with a certain quantity of power at that price but has been considered insufficient for aluminium makers.