To deal with the energy situation in which we find ourselves with constant rises and falls in the cost of electricity, the Government has been pressured to approve a strategy with a sequence of urgent measures and rapid application to cushion their effect on final bills. of customers.
Despite the fact that Spain is one of the countries that has been least affected by the invasion of Ukraine, it has received a considerable impact on the price of gas and also electricity. For this reason, the measures promoted by the governments are focused on reducing dependence on gas.
How will the price be reduced?
According to the Government, the plan to reduce the price of electricity consists of a limitation on the price of gas when selling to the electricity system. Thanks to this limitation, the average price of electricity will drop significantly to around 130 euros per megawatt hour on average throughout the year, compared to 210 euros in the first quarter of 2022. As of today, May 18, 2022, the average price of electricity in Spain is around €195 per megawatt according to the market operator OMIE, so the plan will mean a big step towards reducing the price of electricity and also of gas.
Who benefits?
This reduction in the price of electricity will benefit all consumers with a PVPC rate and all consumers in the free market who have a pool rate. By applying for a full year, all households and businesses (except those with a longer contract) will benefit.
Benefits for consumers
According to the third vice president, the plan consists of a limitation in the price of gas when selling to the electricity system. This limit will start at 40 euros per megawatt hour for six months and will then increase, month by month, until it reaches an average of 48 euros.
Thanks to this limitation, the average price of electricity will drop significantly to around 130 euros per megawatt hour on average throughout the year, compared to 210 euros in the first quarter of 2022. As of today, May 18, 2022, the average price of electricity in Spain is around €195 per megawatt according to the market operator OMIE, so the plan will mean a big step towards reducing the price of electricity and also the gas.
Duration and effective date
According to the Government, this price reduction will have a maximum duration of one year, with the possibility of being interrupted for reasons of interest. Likewise, the entry into force of the rule will take place the day after its publication in the Official State Gazette. (BOE).
