How will the gas price ceiling affect consumers?

Who benefits: Regulated consumers

The main beneficiaries of this mechanism will be around 10 million users. regulated market (37% of electricity consumers) and 70% industrial consumers those who go directly to the ‘pool’ for electricity.

Despite being the First Vice President and Minister for Ecological Transition, Theresa Riveraof its users free marketmarketers as they renew their contracts. reference prices cheaper (going from 210 euros when the wholesale market was established in the first quarter of 2022 to an average of 130 euros per megawatt hour).

How much: 30% discount

This is a invoice price reduction For 37%, around 30% on average over the period Domestic consumers with PVPC rate (10 million consumers) and for 70% industrial consumers those who go directly to the so-called ‘pool’ to get their electricity.

According to estimates based on data from OMIE and the National Markets and Competition Commission (CNMC), in the first month with the cap in effect at €40, the average domestic user with a PVPC rate could pay half their March bill. , the month with the most expensive price in history.

When: Starts in June

They entry into force will produce The day after publication on BOE As reported by Ribera, “in principle it will happen this Saturday”. However, this does not mean that the measure will be implemented immediately, for which we will have to wait for the end. European Commission formally accepts approval of the standard through agreement. brokers college “It is possible to obtain the official approval of the European Commission. a week, ten days or two weeks‘, Ribera pointed.

In addition, utilities have 5 working days to present details of contracts with customers and another 7 days to adapt systems. “Effective and final after twoo 12 days or official permission of the European Commission”, ministry sources explain. So, at the earliest early June This measure cannot be applied.

Who pays compensation: Consumers

This difference Between the price of the limit (that’s 40 euros per megawatt-hour) and the real gas price (currently almost 80 euros) electricity consumers, retailers, especially consumers regulated market Users who will benefit from the price reduction in the first place (approximately 10 million) and also go directly to the market to buy their supply or have ‘pool’ indexed contracts. users free market In fixed price contracts with a duration of less than one year, they will be included in the mechanism as they have to renew their rates.

“First time they don’t pay the same. A situation like this is usually General budgets of the state. Let’s think about the financial crisis, let’s think about the real estate crisis… Not this time,” Ribera argued. There will be users who will pay this compensation, but it will be less than the unlimited payment. Because while they only have to pay for the gas used by the power plants that burn natural gas, other power plants (nuclear, hydraulic and renewable) combined cycles are also paid at that price when they set the price.The government argues that the main taxpayers of this measure are the electricity companies, which will make lower-than-expected profits, “which does not mean that they will incur losses”. net benefit to consumers will be positiveIf not, there is a clause that allows governments to take action,” ministry sources explain.