What does the new concept on invoices mean?

On 15 June, Royal Decree Law 10/2022 came into force, which establishes, on a temporary basis, a production cost adjustment mechanism to reduce the price of electricity on the wholesale market. The measure will apply for 12 months and until 31 May 2023 at the latest.

This consists of limiting the gas price that thermal power plants will apply when making their offers on the wholesale market. In this way, the cost of energy will drop considerably for the duration of these exceptional events.

It should be borne in mind that to this market price will have to be added the cost of the adjustment or surcharge, which is necessary to finance the difference between the price of gas set in the mechanism and its market price.

Who is affected by this measure?

Applies to contracts with indexed prices and to new contracts, renewals, price revisions and extensions after 26 April 2022.

In summary…

This regulation indicates that the price of energy has risen considerably in recent months and a large part of this increase is subsidised by the government and another part by the end users. Evergreen Electrica has no impact on these amounts and we only carry out the cost transfer.

Sources:

https://www.boe.es/buscar/act.php?id=BOE-A-2022-9838

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