Data battle with gas cap: Why only 6% drop in electricity bill?


When the Iberian Electricity Market Operator published its data, there was a significant dance of statistics and perspectives.

Teresa Ribera attends the 2021 annual awards ceremony of the Union of Parliamentary Journalists.
Teresa Ribera attends the 2021 annual awards ceremony of the Union of Parliamentary Journalists.Kiko Huescaefe

The first day of application of the Iberian exception imposing a cap on the price of gas for electricity generation ended with a shortfall. far less than the government’s plan, Although the drop was considerable in the wholesale market, where a decrease of 22.6% was recorded, the reality is that users will only see a decrease of 6%. Meanwhile, the executive is reconsidering its discount on another star bonus, fuel, noting that it doesn’t reach those who need it.

During Tuesday, there was a significant dance of statistics and outlook, after the Iberian Electricity Market Operator (OMIE) published its final data. The government celebrated the entry into force of the “historic” measure through the minister’s spokesman, Isabel Rodriguez. According to their calculations, This would mean a reduction of about 20%, “It will also mitigate the effects of an increase in the CPI, reducing it to almost a point,” he assured.

Meanwhile, a completely different message was spread from the power companies: this measure has not helped at all. In fact, with your numbers, electricity is more expensive this Wednesday, except on Tuesday when the peninsula was not yet an energy island.

In the background lies the war of percentages that ensue because the structure is also a quagmire for the consumer: the electric system with its prices and variables. Thus, for example, it is a fact that the price at which electricity is paid in the wholesale market was 22.6% lower (49 euro difference) on Wednesday than what was paid on Tuesday: 165.59 compared to 214.05 Euro. However, many other variables are entered into this calculation, ranging from the day of the week—Saturdays and Sundays consume less electricity and the price usually falls—to making wind each day, as it affects the production of wind power. Is. Hence, the steep fall in price cannot be attributed to this factor alone.

Similarly, once other charges are added to the cost of electricity in the wholesale market, such as compensation for combined cycle plants—which use gas—that figure will rise to an average of 59.27 euros this Wednesday, by hours. is calculated from). Thus, the total will remain at 224 euros per MWh, but, again, they cannot be compared with Tuesday’s 214 euros, because, apart from the difference in production and consumption, the cap on gas was not applied that day.

Therefore, the comparison should be in any case, Electricity without roof will cost on Wednesday with 237 eurosWhere the difference is positive (6% cheaper) but less than the percentage controlled by the government, around 15 or 20%.

“The first results are what we already anticipated: we said there would certainly be positive results when it comes to lowering the price of gas, and that has been the case,” he summarizes. Jose Manuel Corrales, Professor of Economics and Business at the European University. “It has been significantly reduced in the first electricity auction that the gas cap has had an effect,” he explains of a measure he believes “will work in the short term.” Of course, he admits that “it is clear that he is late” and regrets “bulk mistakes”: “Algeria is now absolutely insane in conflict with it.”

Coralus, sticking to the percentages, sees the measure as a positive because “it means a reduction in the electricity rate for the consumer.” In any case, he cautioned that it would be important to see “how prices develop.”

new fuel discount

On Tuesday, marked by energy, the government also raised the possibility of re-touching fuel exemptions. Currently, the 20-cent bonus reaches everyone and voices within the executive have criticized this approach. Yolanda Diaz – for whom “it is not right to continue subsidies without income bias” – and Alberto Garzón – who believes they are “regressive measures” – have the support of Teresa Ribera. The European Commission, the IMF, the Bank of Spain, Fedia and most Spanish tax experts have spoken along the same lines.

During an interview on TVE, the Third Vice President and Energy Transition Minister assured that they are considering re-touching the exemptions if they go beyond 30 June, but only if they find an “agile and fast” way to do so. Go.

“We are looking into whether there are more appropriate ways to specify the target subjects in favor of these measures,” the minister announced. If the formula for making changes is not found, the government intends to “continue to operate with the protection we approved in March.”

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