Spain | Spain and Portugal approve mechanism to reduce electricity prices

Royal Decree-Law 10/2022, establishing a temporary mechanism to reduce the price of electricity
Spain | Spain and Portugal approve mechanism to reduce electricity prices
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May 18, 2022

The Official Gazette of the Spanish State has published Royal Decree-Law 10/2022, establishing a temporary mechanism to reduce the price of electricity in the wholesale market.  

Royal Decree-Law 10/2022 introduces measures to mitigate the impact of the gas consumed by combined-cycle power plants on the offers determining electricity prices on the wholesale market (pool) and it establishes a reference gas price starting at €40/MWh for the first six months and increasing by €5/MWh per month until it reaches €70/MWh in the last month.

The temporary measure will be implemented for 12 months, entering into force from the date the Official Gazette of the Spanish State publishes the ministerial order regulating the authorization of the European Commission.

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May 18, 2022