Spanish News

The Government approves the cap on the price of gas at 48.8 euros: this will affect the price of electricity

todayMay 13, 2022 9

Background
share close

The Council of Ministers approved on Friday the mechanism to limit the price of gas for electricity production, which stands at 48.8 euros/megawatt hour (MWh) on average. The measure will be in effect for one year.

“With this measure the Government achieves a very important objective that is to put a cap on the price of gas and thereby reduce the price of electricity in Spain”, comments the minister spokesman, Isabel Rodríguez.

The Government gives the green light to the King decree law “establishing, on a temporary basis, a mechanism of adjustment of production costs for the reduction of the price of electricity in the wholesale market”, she adds.

Spain and Portugal announced at the end of April a “political agreement” with the European Commission to limit the price of gas in the wholesale electricity market of both countries.

The measure has been approved simultaneously between Portugal and Spain, so the entire peninsula will benefit. It will help consumers’ bills by reducing it by about 30% for an average consumer with a rate indexed to the ‘pool’.

Minister Ribera estimates that the average price of electricity will be 130 euros MW/h from 210 now. ” To these 130 euros will have to add the other elements”, clarifies.

She also says that with this reduction does not mean that the electricity companies go into losses, “they will continue to have benefits”.

Minister Teresa Ribera believes that the measure can be published in the Official State Gazette (BOE) “tomorrow or otherwise, on Monday, in any case immediately” and confirms the measure will enter into force the day after its publication.

“Full effectiveness is conditional on formal approval by the European Commission, and formal approval may take a few days or weeks to be approved by its internal procedures,” she explains.

Written by: BayRadio News

Rate it

Ctra. Cabo La Nao, CC La Nao, Local 6 03730 Javea, Alicante, Spain

Phone: (+34) 965 796 761
E-mail:
Website: www.bayradio.fm
Advertise with us

Do you have a business in Spain? Do you provide a service to the expat community in Spain? Would you like your message to reach over 500.000 people on a weekly basis? 

BayRadio is a community orientated radio station offering fantastic content to our many listeners and followers across our various platforms. Contact us now and find out what Bay can do for you!

Our business is helping your business grow.

Playing now

Kal In The Afternoon

featuring various guests
Sign up to newsletter

By submitting your email you agree to BayRadio T&Cs 

0%