Brussels asks Spain to reform regulated tariff to approve cap on gas

Brussels condition authority Mechanism to limit gas price in electricity market to Spain regulated tariff reform, According to the draft of the royal decree approved yesterday by the Cabinet. This is exactly what utilities have been claiming for months, demanding design changes to avoid the volatility caused by their direct reliance on the wholesale market.

“Somebody conditions to confirm the mechanism. European Commission This current voluntary price reform for small consumers (PVPC). Thus, the adjustment mechanism is configured as one. Extraordinary measure in making this reform “This is taking effect effectively, not immediately,” says the draft text published by El Periódico de la Energía.

In October last year, amid the price increase, the Government changing this ratio but what is left frozen So far, Brussels has made it a condition to ratify the upper limit. Change to be made before 1 October of the new calculation for the adjusted rate, futures markets It is based on a basket of products from the futures markets – annual, quarterly and monthly – and the wholesale price of the daily market that determines the price today. Aim, new formula PVPC energy cost adjustment Start applying in early 2023.

According to ministry sources, the market term in Spain is very scarce. liquidity, both on the supply side and on the demand side. Thus, the reference of futures markets in the regulated tariff will guide the energy purchasing strategy of reference marketers, encourage a greater tendency to participate in futures markets to obtain energy from their customers, and promote the liquidity of the Iberian futures markets. buyer side. In the case of vendors, one of the reasons for this low liquidity is that it does not participate in technology facilities. renewable, cogeneration and waste It is covered by the approximate contributory specific compensation regime (RECORE). 38% of electricity demand. Therefore, the Government is establishing a regulatory pricing model that encourages the incorporation of RECORE energy into these futures markets.

The PVPC is Iberdrola president Ignacio Sánchez Galán’s call to rate the “dumbs”. This Friday, the third vice president and minister for Ecological Transition, Theresa Rivera. always cheaper Vulnerable consumers are more than those on the free market, as well as being the ones who “necessarily” need to take advantage of the social bonus. “I don’t think I’m very smart A businessman calling his customers stupid, and even more so in such cases,” Ribera warned, “welcomed” offers that “better suited the needs of industrial consumers.”

Source: Informacion

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