Government approves gas price cap but won’t implement it until it gets the final green light from Brussels


The intervention will benefit only 37% of consumers, who are covered by the PVPC-regulated rate, and 70% of the industry.

Theresa Rivera
Ecological Transition Minister Teresa Ribera.Christian BrunaEFE

The government this Friday approved the Royal Decree law in the Extraordinary Council of Ministers which includes the mechanism gas price interference Used in electricity generation and fetches low bills for millions of consumers.

However, this mechanism will not come into force until the European Commission gives final approval to the Spanish and Portuguese rules. Vice President of Ecological Transition, Theresa Rivera, has not been able to specify when this entry will come into force. “It depends on the European Commission. It could be a few days, a week, two weeks …”, she explained, although she expressed confidence that the green light would come after having already received an initial pass.

“Force will enter The day after publication in the BOE, which will be tomorrow or Monday, and we will have to wait for the European Commission to finally adopt the approval of that standard. During this time, the power companies will have to give detailed information about the retail contracts.

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Ribera also recognized that only 37% of domestic consumers would benefit from the measure “with immediate effect”, which are covered by the PVPC regulated rate. He has stressed that the rest of the households will have a “progressive effect” and will see the lowest market value when they have to renew the supply contract with their electricity supplier. Its impact on the industry will be massive, benefiting 70% of the companies.

The OCU estimates that the measure ranges from €100 to €85. will allow a reduction of up to The average bill for customers subscribing to the PVPC regulated rate, ie this would mean a savings of 15 Euros but would remain at a historically high level. However, the Vice President of Ecological Transition has refrained from putting figures on the percentage of savings that consumers will receive, noting only that the cost of the electricity market will go from an average of 210 euros per MWh in the first quarter of the year. Up to 130 euros after the implementation of this mechanism. That amount would later be set by the government to compensate the gas plants for the difference between the political price and the market price.

The measure will reduce the price of gas used in electricity generation to a maximum of 40 euros per MWh for six months, from the date it will begin to rise to an average of 48.8 euros over a total period of one year. Hope to activate this extraordinary mechanism.

the difference between that political price and the market price Consumers will have to pay compensation, “Those who are benefiting will contribute to the additional cost due to the introduction of reference costing. In any case, there will be a net reduction for all”, he explained.

Ribera limited himself to pointing out that this would mean a reduction in the extraordinary profits of large power companies, which would charge far less than market prices for electricity sold at their nuclear or hydraulic plants. They allege that the output of these installations is sold at a price much lower than what is set by the electricity market after the intervention, but the government distrusts them and forces them to give details of the prices with new rules. But they sell the final light to their customers. for customers.

The Ecological Vice President has made harsh allegations against the companies when she considers that they have not contributed to solving the current energy price crisis and, in particular, assured that she is “embarrassed” by the words of Iberdrola President Ignacio Sánchez Galán. Feel, in which he called those customers “fools” who continue to stick to the regulated rate.

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