In the first month of operation, the mechanism has prevented the price of electricity from increasing another 15% compared to Europe, although it has skyrocketed by gas
The more than ten million households benefiting from the Regulated Electricity Tariff (PVPC) have started to receive the bill from their electricity company, which already includes the Iberian cap approved by Brussels in June, and which was launched in the middle of that month. After in many cases the first 30 days have passed, which coincide with each company’s billing period, the receipts contain a new concept, within the quagmire of technical terms that engulfs this information: ‘Cap cost of gas according to RDL10/2022’. This amount implies an increase in the electricity price, with an average of 0.13 euros/kwh in the first month of operation.
In exchange, the term ‘energy price’ of the regulated tariff will have practically fallen to about 0.12 or 0.13 euros/kwh for the same period.
Starting now and for the next 11 months, users covered by the PVPC will see in their receipts how this new information is included, which determines the price of the fee to be paid to owners of combined cycle gas-fired power plants that have the price of that raw material they use is limited compared to what the international markets mark.
For the time being, this adjustment is paid for by consumers on the regulated market. And as the free market contracts expire, they will also be included in the distribution of this payment, which should theoretically decrease in the coming months.
The positive impact for those who benefit from this limit is more than 16% in their first month of life. An evolution between 15% and 20% that the Executive expected, although the saving was initially estimated at 30%. The mechanism was influenced by the evolution of this commodity, which has doubled its costs in international markets in the past month. Partly due to the two heat waves in June and July.
The price of gas will continue without delay. On Tuesday, it was again close to 200 euros/MWh, a benchmark it hadn’t seen since March, after rising another 13% amid tensions in the international gas market.
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.
