Government awaits approval before July new electricity tariff you want to soften fluctuations in electricity billAs stated by the Minister of Energy, Sarah Aagesenat breakfast organized by New Economic Forum With the Energy Director of the European Commission, Ditte Juul-Joergensen. The new Voluntary Price for Small Consumer (PVPC) rate, technically called, was supposed to be approved last year and go into effect early this year, based on the Executive’s plans a year ago.
The direct link between this tariff and the wholesale market, Intense discussions at the dawn of the energy crisis that intensified after it began ukraine war when gas raises electricity to record levels. Consumers with a regulated tariff in Spain have suffered from price increases, unlike those experienced in other countries where increases have occurred but after a period of crisis and more steadily. Immediately.
Formula chosen by the Manager to avoid this volatility: connect The energy price — one of four items on the invoice, along with contracted electricity, taxes, and regulated items — is not just for the daily market, but also for futures market, which is more stable. Specifically, it has been determined that the portion corresponding to the futures market consists of: 10% with monthly product, 36% with quarterly product and 54% with annual product. The change will not be sudden, but progressiveso forward market reference 25% of the price in 2023, 40% in 2024 and 55% in 2025.
This mechanism means less volatile pricesHowever not necessarily cheaper. Thus, according to both the CNMC in its report and the Government in the economic memory of the previous royal decree, scenario of price increases like last year, this fee softens the increasesbut one stable scenario –as was customary before the war– can mean rise.
European Commission
in the context of discussions between European Commission and Spain and Portugal bringing the upper limit to the gas price, Spain informed Brussels related to Intention to reform the electricity tariff regulated for the purpose of reduce your addiction Open development of the daily market. This is, as originally thought, The European Commission is pushing the Spanish Government to make these changes.
If there are no changes in plans and Spain approves the new rate before the end of June with effect from 1 January 2024, new rate will enter into force When the new extension of the gas cap ends on December 31st.