By Chris King • 23 May 2022 • 22:06
Photo of Teresa Ribera at the Cepsa plant in Tenerife.
Credit: [email protected]
Teresa Ribera, the Minister for the Environment, admitted this Monday, May 23, that there is some uncertainty in calculating the exact reduction in the price of electricity once the cap on gas to generate electricity comes into force.
She maintained that the forecast of the Executive is that it will fluctuate between 15 and 20 per cent. Ribera said on numerous occasions previously that the reduction in the price of electricity with the new mechanism would be 30 per cent.
Speaking to journalists after attending the start of the dismantling of the Cepsa refinery in Tenerife, she commented that the final percentage depends on how the price of gas evolves. It will also depend on how many hours of the day the final price of gas is set at, so, being prudent, the minister said the discount could be between 15 and 20 per cent.
As reported by abc.es, on March 25, when the European Council authorised the ‘Iberian exception’ to limit gas prices, the average cost of electricity in the Spanish wholesale market was €264/MWh. Tomorrow, Tuesday, May 24, the average will be €180/MWh, 32 per cent less.
Ms Ribera stressed that “the most important thing” is to achieve the price reduction that has occurred in recent months, with a trend that gives security to the supply in the face of the gas cut that has occurred for example from Russia to Finland.
The minister said how much she valued the support of the European Commission and the Union as a whole, for the ‘Iberian exception’, because it gives leeway to achieve different price references in a market in which it is very difficult to modify tariffs or promote medium and long-term contracts, when 40 per cent of domestic customers, and 70 per cent of industry, are indexed to the wholesale market.
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Originally from Wales, Chris spent years on the Costa del Sol before moving to the Algarve where he is a web reporter for The Euro Weekly News covering international and Spanish national news.
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