The Energy Agency estimates a nearly 9% drop in gas demand, worse than during the pandemic
The Minister for the Ecological Transition, Teresa Ribera, has indicated that consumers will notice the decrease in their electricity bills as a result of the measures taken by the government, such as the reduction of the tax burden (VAT at 5%) and the ceiling on gas. (effective since 15 June), in the coupon for this month of July. Of course, he has clarified that he speaks of “a relative reduction, with what it would have been without these measures.” Market volatility over the past month has forced management to adjust its expectations: if the measures had not been applied, electricity market prices in Spain would have been 15% higher. At the same time, Ribera added that if the “80% reduction in taxes and fixed costs” is added to this, the bill decrease is about 30%.
In absolute terms, a smaller reduction can be achieved for those who have a PVPC rate (from the regulated market) and a larger reduction for those who have a rate on the free market,” Ribera indicates.
In addition, the average price of electricity for regulated tariff customers connected to the wholesale market will decrease by 2.23% this Wednesday compared to this Tuesday, to 226.57 euros per megawatt hour (MWh). This cost arises from the 145 euros/MWh of the daily ‘pool’, an amount to which a further 81 euros/MWh must be compensated to the gas companies. The contribution of combined cycles to the electrical ‘mix’ is again over 25%.
On the other hand, the demand for gas in Europe will fall by 9% this year compared to the data for 2021. Even during the year of the pandemic, with activity paralyzed, the decrease in gas consumption was not as relevant. Global demand for gas will also decline in 2022, according to the latest forecasts from the International Energy Agency (IEA).
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
