Do you feel that the electricity rate you are paying is still too high?

Next, We will explain why the drop in electricity rates promised as a result of the measures taken by the government has not yet been felt.
We will also tell you when these measures will have a real impact.


Foto: Robert Haverly - Unsplash

Measures taken to lower electricity rates

In order to reduce electricity rates, the Spanish and Portuguese governments have recently reached an agreement with the European Commission. This agreement was dubbed the “Iberian derogation" and allows limits to be placed on the value of gas used to generate electricity. The goal of this agreement was to reduce energy costs in the two countries. Despite some controversy, this pact will clearly help consumers. The current agreement will impose a limit of 50 €/MWh for at least for twelve months, during which the measure will be tested. This significantly reduces the current price/MWh of around 80 €/MWh.

Why has the drop in electricity prices still not been felt?

Although the measure has been in place since May, many users have commented that they have not seen any significant reduction.
It should be borne in mind that in the regulated market the electricity rate is highly variable. It does not depend only on government policy, but fluctuates in relation to other factors.

The main ones being:
  • The stability of the energy market.
  • The contract between the consumer and the supplier.
  • The period of day when the energy is consumed.
  • The law of supply and demand.

This final cause of variation in the price of electricity is important in order to understand what is happening today. We know that the law of supply and demand states that the more demand there is for a product or service, the higher its value. Similarly, when supply is limited (i.e. there is less of that product or service available), its value increases.
Bearing this in mind, it is important to point out that Spain has experienced a strong heat wave in recent months, which caused many people to run air conditioning and other ventilation equipment for a long time.

So, has the electricity rate not changed?
In order to analyse the overall situation in relation to the changes in the electricity rate, the whole context must be taken into account. In this regard, it is important to note that the limitations on the price of the gas used to generate electricity have already been implemented. As a result, gas prices were reduced by up to 22%. This suggests that, sooner or later, the price of electricity will also fall.
In short, as the new measure was implemented, Spain was hit by the heat wave, which meant that it was not possible to measure the true effect of the government's proposal.
However, all indications are that the decrease in the energy rate will be noted in the coming months when the temperature stabilises. Only then will the government's measures become tangible and we will see reductions in our monthly bills.
If you want to know more about the price of the kWh consult in

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