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The cap on the price of gas and how it affects your electricity bill

An urgent, temporary measure has been taken to establish a cap on the price of gas used to generate electricity. This not only directly affects the wholesale market, but also your electricity bill.

Cap on the price of gas: what it is, why, when and how this measure is applied

  • What is it? Gas used in thermal power plants to generate electricity has a new price cap. This measure was approved by the Government by means of a Royal Decree Law.
  • Why? The aim is to reduce the prices of electricity in the wholesale market.
  • When? It is an urgent, temporary measure, which applies from June 15, 2022 and until it is decided to cancel it (at most it would last until 31 May 2023).
  • How? The aim of establishing a cap on gas prices is to reduce the price of electricity in the wholesale market. But "putting a cap" on gas has a cost for everyone, since it is necessary to compensate those plants which will continue to buy gas in international markets. This measure will be financed by all consumers in accordance with the established regulatory conditions.

 

How the cap on gas prices affects your electricity bill

How does it affect you if you are in the unregulated market?

It applies immediately if you made your contract on or after 26 April 2022. For the remaining clients, it will be incorporated progressively as the contracts currently in force are renewed or automatically extended, in accordance with the regulations.

The cost of this measure will appear on the bill, separately from the other items, as an amount that will depend on the hourly price in the electricity market. It will appear on your bill as "Cost for gas price cap RDL 10/2022".

 

Endesa offers you new tariffs and special discounts of up to 20%

In the light of additional costs and market volatility, Endesa is the answer. If what you are looking for is savings and peace of mind, Endesa can offer you a special discount of 20% on the energy term.

FAQs

No. This is an urgent and temporary measure that will be in force until 31 May 2023 at the latest (but could be cancelled sooner).

It came into force on 14 June and has been applied since 15 June.

"Putting a cap" on the price of gas involves an additional cost. It will be necessary to continue compensating the plants that need to be supplied with gas from international markets to generate electricity. This additional cost will be financed by all consumers in accordance with the established regulatory conditions.

No. They will continue to be variable price tariffs and segmented into time bands.

If you have an unregulated market tariff, the effects of this measure will be applied progressively as current contracts are renewed or extended. The cost of financing will vary from hour to hour and will be included in the invoices as a separate item: "Cost for gas price cap RDL 10/2022".

There is no fixed amount on each bill: it will vary according to energy demand.

On free market invoices, it will appear progressively as existing contracts are automatically renewed or extended. It will appear as an item entitled "Cost for gas price cap RDL 10/2022".

In bills for the regulated market, the cost of this measure will be assumed within the energy term.

This gas price cap does not differentiate between markets, and is an additional cost that is shared amongst all energy consumers. The additional cost will be financed immediately by clients in the regulated market and by those in the deregulated market who take out contracts from 26 April 2022 onwards (the remaining regulated market clients will begin to finance it as and when they renew or automatically extend their contracts in force).

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