The opening of the electrical interconnection between Spain and France on February 20, 2015

Daily Spanish newspaper El Pais reported, on Monday, that Madrid has informed the European Commission that a joint price reduction plan with Portugal may entail restricting energy sales to France.

Spain is the largest single supplier of imported electricity to its northern neighbor, and the potential restriction comes as the entire EU grapples with rising energy costs.

In late March, Spain and Portugal agreed to limit the price of gas used in electricity generation to $32.50 per megawatt-hour. While Brussels granted both countries an exemption from its normal rules, allowing this arrangement to proceed, Madrid and Lisbon then delivered some bad news to Eurocrats.

Spain and Portugal will have to impose "some restrictions" on energy sales to France, according to documents quoted by the newspaper.

Electricity exported to France would be charged at a higher rate than that consumed on the Iberian Peninsula under an alternative system originally proposed by Madrid. According to El Pais, Brussels officials are concerned that this arrangement will violate the bloc's market rules, and Germany and the Nordic countries are said to be vehemently opposed to the idea.

The issue is expected to be discussed at the next meeting of the College of EU Commissioners, which is held on a weekly basis.

Despite being a net exporter of electricity, France still imports approximately 34% of its power, according to 2020 figures. Spain, more than any other country, provides the majority of France's electricity supplies.