Monday, December 11, 2023

Agreement to lower the electricity bill between 30% and 40%

Spain and Portugal may limit the price of gas and coal used for electricity generation initially at 40 euros per megawatt hour. A cap that will have to rise progressively until it reaches 50 euros on average for the next 12 months in which this emergency mechanism agreed by the European Commission with the Minister for Ecological Transition, Teresa Ribera, and the Minister for Climate Action will be active. from Portugal, Duarte Cordeiro. The agreed limit is higher than the 30 euros that Spain and Portugal had proposed, but in return, the duration will be longer than initially planned.

According to energy experts, the entry into force of this mechanism will make it possible to reduce the final electricity bill paid by consumers by between 30 and 40%. Although it must be clear that this measure benefits consumers in the regulated market, who represent around 40% of the total. The Government intends to definitively approve this measure at the Council of Ministers next Tuesday and to start applying it the following week so that the reduction will already be noted in the May bill.

In Business Hour 25, Jorge Morales de Labra recognizes that “the entry into force of this agreement will lower the electricity bill by 30% compared to April” of consumers covered by regulated rates. But at the same time, he warns that the companies “are going to affect the increase in the bill of consumers who are in the free market.”


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