Gas price cap in Spain: only moderate relief for consumers

By
Isabel Cuesta Camacho

Since June 15, Spain and Portugal have been applying the measure to cap the gas price for power generation. However, the initial assessment after one month is meager. In Spain, the exchange price for electricity is particularly important politically because 37 percent of households have a regulated electricity tariff whose price is directly linked to the spot market. The exchange price for electricity, in turn, is determined by the gas price: According to the rules of the European electricity market, the most expensive power plant determines the electricity price for all types of generation – and in view of skyrocketing gas prices, this is usually a gas-fired power plant.