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Gas cap cost could lead to power shortages

Government is entangled with the roof gas price, While waiting for the European Commission to send definitive support of the…

By admin , in news , at May 26, 2022

Government is entangled with the roof gas price, While waiting for the European Commission to send definitive support of the measure to Madrid and Lisbon, the Spanish executive continues to do the math. Mahan continues to point out the amount of compensation costs to unknown combined cycle companies that produce electricity from gas. A subsidy that – in accordance with the Royal Decree approved by the Council of Ministers two weeks ago – will be distributed among all consumers To take advantage of power cuts,

This does not include free market users, who will pay a fixed price for electricity consumed during the next year. However, this puts pressure on customers who pay a different price every day. A few weeks ago, experts consulted by El Debate estimated that, if the government decided to load the cost of the measurement on the shoulders of regulated rate users, “This cost will offset the shortfall that the cap on gas price implies”, This is where the big headache of the executive is found.

Spain requires more customers to subscribe to a regulated rate that allows more compensation to be distributed in combined cycles. hence the text BOE. Posted in Include a section on May 14 urging power companies Number of users to update daily Subscribed to one or another contract model.

The government is dashing the expectations on the gas limit

In recent days, the Minister of Ecological Transitions has lowered expectations regarding the consequences of the gas price cap. If the government had promised a 30% reduction in the final bill a few weeks ago, this Monday Teresa Ribera said they expect a reduction of between 15 and 20%. Executive’s forecast on the benefits of the measure They have shrunk in half in just two weeks.

Unknown won’t solve Until the European Commission grants its formal authorization and starts rolling out the standard. The wait could be even longer. The government approved the Royal Decree nearly two weeks ago, and Brussels celebrates this Thursday a national holiday that keeps institutions closed.

Spain to sell subsidized electricity to France

This isn’t the only corner of the measurement that hasn’t been highlighted yet. Spanish consumers subscribing to regulated tariffs still don’t know Will they have to subsidize the electricity that France will buy from Spain? At the fixed price for gas.

“The French consumer that is going to import as much as possible through this 2,500-MW interconnection is going to do so at the Iberian market price,” said Fernando Soto, general director of the Association of Companies with Large Energy Consumption, in an interview. said. argument. Soto recalled that the document did not include any compensation that France was obliged to pay for the standard. The deluge of doubts will not be resolved until the final text returned by Brussels is published.

The Spaniards Will Pay More Than the Portuguese

Distortion may occur between separate wording of text governing cap on gas price in Spain and Portugal Iberian consumer.

Spanish users can assume about 600 million euros more than the Portuguese in costs due to the application of the ‘Iberian holiday of absence’, a mechanism for limit gas price For an average of 48.8 euros per megawatt/hour (MWh) of electricity generation over a 12-month period, according to industry estimates provided to Europa Press.

This is because the extension of power term contracts in Spain is not exempted from paying the cost of adjustment of the gas cap, unlike portugalwhich does not include these expansions in its decree, although according to sources in the region, it may suffer a later nuance.

For now, the wholesale market continues to mark the realization of consumers. The average price this Thursday will be 173.29 EUR/MWh, reaching its most expensive hour between 9:00 PM and 10:00 PM, when 218 EUR will be paid.

Gas cap cost could lead to power shortages

2022-05-26 02:43:29