The impact of the Government’s energy reform will be diluted in spring


Madrid

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The government It will undertake a profound reform of the energy sector to lower the bill for both gas and electricity. But these measures will have a limited impact in time, since they will only be active in principle until next spring. It is then when both the Executive and the energy sector foresee that the price of electricity will begin to deflate.

To understand the reform, it is necessary to understand that the Government only acts on the electricity rate, but also on the gas rate. In other words, some measures are aimed at making electricity cheaper and others at preventing the price of natural gas from skyrocketing for households.

Measurements for light

In relation to electricity, the Government has deployed a wide range of initiatives ranging from a reduction in taxes to the creation of alternative auctions where electricity companies would be “forced” to sell their production cheaper. There will also be a limit to the so-called ‘profits fallen from the sky’, which the companies until March.

This return of extraordinary benefits, valued at 2,600 million euros, will serve to reduce the electricity bill in the ‘charges’ section of the system. In the energy sector, however, they assure that its impact will be limited.

«If the prices of the natural gas continue to skyrocket as up to now, the price established in the wholesale market will continue to be high. It is a more cosmetic than effective measure ”, explain industry sources. In other words, even if the remuneration that electricity companies obtain for selling ‘expensive’ energy that they have produced ‘cheaply’ is controlled, the market will continue to function as it has been up to now. The energy that enters the auction last, and therefore the most expensive, will continue to set the price in the wholesale market. And this will continue to be natural gas.

Measurements for gas

But the Government will not only affect the electricity bill. It has also approved measures so that the price of gas does not go out of control in the middle of winter. For this, the Executive will limit the rise in natural gas, whose regulated tariff (TUR) will be revised quarterly, at 4.4% during two quarters. A percentage significantly lower than the 28% rise that should be undertaken due to the rise in prices of this raw material.

But this limit has a trick, because in reality the rise is deferred, it is not suppressed. In other words, consumers will pay that ‘forgotten’ percentage from April (when the two suspension quarters expire) in a fractional way. For example, it could be the case that next year the price of gas falls and this is not transferred to the bill because the increase that the Government now differs is applied.

Sources of Ecological Transition explain to this newspaper that this system is not new, and is already used with the butane cylinder, for example. “The objective is to limit the weight of the price of gas in the regulated tariff, which now represents between 30 and 40%,” they explain from the Ministry.

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