The gas price restriction will not come into effect until June and will last 12 months

Euskaraz irakurri: Gasaren prezioari muga ez da ekaina baino lehen aplikatuko, eta 12 hilabeteko iraupena izango du

The mechanism approved on Friday by the Spanish government to limit the price of natural gas for electricity generation, which will reduce the wholesale price of electricity by 40%, is expected to come into effect in June and last for 12 months.

According to detailed sources from the Ministry for the Ecological Transition and the Demographic Challenge, the royal decree will be published predictably this Saturday in the Official Gazette (BOE), but it will not be applied until the European Commission (EC) gives its final approval when all internal procedures of the European body have been completed.

In accordance with the deadline approved by the Spanish government for the sector to adapt to the new mechanism, the gas price cap would start to work, at the earliest, next June 1provided the European authorization arrives before that date.

Thanks to this mechanism, electricity bills can be reduced by almost 40% for consumers covered by tariffs indexed to the wholesale market.

“For the first time, they do not pay the same. For the first time, the measures taken have as their fundamental goal reduce unexpected profits from energy companiesand that “there are net benefits for all consumers,” the government’s third vice president and minister for the ecological transition, defended. Theresa Rivera

In that sense, Ribera has blamed the big electricity companies his lack of reaction in recent months to the rise in electricity prices: “We would have liked to see them behave more in line with the payment capacity of households or the needs of industrialists”.

“The most immediate effect is that the only electricity that will be paid at the expense of gas is the electricity generated from natural gas. We are eliminating the contamination effect on the rest of the energy resources, which is a very significant reduction in extraordinary profit,” explains Ribera out.

The minister stressed that this measure is a response that “has few precedents”, as Europe has understood “the reasons why Spain and Portugal should have this exception”, it will be “an umbrella” to support domestic consumers and large industry to protect .

Executive Spokesperson, Elizabeth Rodriguezhas defended that this decision puts Spain in the lead of a “structural change” in European energy policy.

Average €48.8/MWh

The mechanism negotiated with Brussels establishes that gas will cost an average of 48.8 euros/megawatt hour (€/MWh) over the next 12 months, almost half the price that this raw material determines today, and will benefit both domestic and industrial . consumers affected by the escalation of electricity in the wholesale market.

The price will start at 40 euros for half a year, and later increase to 48.8 euros, compared to the current reference price in the market of more than 100 euros/MWh – as in the case of the Dutch TTF, a reference in Europe-.

In the current configuration of the electricity market, gas determines the world price of electricity when it is used, as all producers receive the same price for the same product, electricity, when it enters the network.

The measure, which was approved simultaneously by the governments of Spain and Portugal, has been given the green light more than a month after the European Council recognized that both countries have difficulties coping with high energy prices due to their low electrical interconnection with the rest of the continent. .

The rule comes into effect the day after publication in the Government Gazette (BOE), which is expected to be tomorrow or Monday. However, full implementation is subject to final approval by the EU, which: it can be postponedas specified by Ribera, a week or ten days, by which until then the adjustment shall not take place.