Ribera defends that the light would be 15% more expensive without applying the Iberian cap

The Minister for the Ecological Transition Teresa Ribera / Eph

The Energy Agency estimates a drop in gas demand close to 9%, worse than in the pandemic

Jose Maria Waiter

The Minister for the Ecological Transition, Teresa Ribera, has indicated that consumers will begin to notice the drop in their electricity bill derived from the measures adopted by the Government, such as the reduction of the tax burden (VAT at 5%) and the cap on gas (in force since June 15), in the receipt for this month of July. Of course, she has clarified that she speaks of "a relative reduction, with what it would have been in the absence of these measures." The volatility of the market in the last month has forced the Executive to modify its expectations: If the measures had not been applied, the electricity market prices in Spain would have been 15% higher. At the same time, Ribera added that if the reduction of "80% of taxation and fixed costs" is added to this, the drop in the bill is around 30%.

In absolute terms, a smaller reduction can be produced for those who have a PVPC rate (of the regulated market) and a more important reduction for those who have a rate in the free market”, Ribera has indicated.

In addition, the average price of electricity for regulated rate customers linked to the wholesale market will drop 2.23% this Wednesday compared to this Tuesday, to 226.57 euros per megawatt hour (MWh). This cost results from the 145 euros/MWh of the daily 'pool', an amount to which must be added another 81 euros/MWh of compensation to the gas companies. The contribution of combined cycles to the electrical 'mix' once again exceeds 25%.

On the other hand, the demand for gas in Europe will drop 9% this year compared to the data for 2021. Not even during the year of the pandemic, with activity paralyzed, was the decrease in gas consumption so relevant. On a global scale, gas demand will also fall in 2022, according to the latest forecasts from the International Energy Agency (IEA).

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