If there is an economic measure that the Government tries to project as successful, it is the cap on gas: daily, through social networks, the Vice Presidency of Ecological Transition publishes a message that compares prices in the electricity markets for the next day and Spain comes out comparatively better than the rest of the European countries. However, the Iberian mechanism, which makes it possible to limit the price of gas to lower the price of electricity, only benefits between nine and ten million electricity consumers: that is, all those who are part of the regulated market (PVPC). Instead, it directly harms an increasing number of customers who are part of the free market (which means around 16 million customers).
Of that number of consumers who are in the free market, none of the Iberian cap benefits because it has a fixed price agreed with the marketers, but it can harm them in some cases: if that contract with the marketers has been renewed after the entry into force of the decree of the gas cap (April 26), makes the bill more expensive because it includes a “toll” to offset the cost of the Iberian mechanism. And the question is that, as the months go by, a greater number of electricity consumers are forced to renew or modify their contracts (because they are term contracts) and, therefore, to assume that cost on the bill.
According to data from Red Eléctrica de España, between June 15 and December 31, 125,809,956 MWh were consumed, of which 10,681,748 MWh corresponded to PVPC (regulated market), which is equivalent to 8.47%, and 115,128,208 MWh corresponded to free contracting, which is equivalent to 91.53%. Within the free market consumer group, 40% of all consumption (49,775,514 MWh) has neither been benefited nor harmed by the Iberian top, while 29% (37,033,356 MWh) of consumption has seen its electricity bill increase. And this number of “disadvantaged” is going to grow in the coming months as more contract changes take place in the free market, while consumers who have “neither harm nor benefit” will tend to be less and less.
In total, with data as of December 31, these harmed consumers of the free market have already paid 2,800 million euros for the Iberian mechanism. In other words, if an average consumer defined by the National Commission for Markets and Competition (CNMC) is taken as a reference –contracted power of 4.1 kW and a consumption of 1,240 KWh between June 15 and December–, your bill It has become more expensive by 43.3% and 111 euros during the time that the Iberian mechanism has been in force in 2022, according to expert estimates. On the other hand, doing the same simulation for a consumer in the regulated market, around 65 euros and 12.7% have been saved. In total, consumers in the regulated market have achieved savings of 1,700 million euros.
The truth is that the Government, up to now, has managed to silence the initial criticism and the measure seems to have become quite popular, although this could turn into criticism if the number of electricity consumers harmed by the Iberian mechanism is increasing. It is also true that the Iberian mechanism has an expiration date: right now it is set for May, but the Government wants to extend it until December.
In parallel, a battle is being waged at the European level for the reform of the electricity market, where the Nordic countries, led by Germany, are reluctant to accept the government’s interventionist proposal and are committed to maintaining the current marginalist model.
[[H2:El PP se reafirma contra el «timo ibérico»]]
The Government has harshly criticized the PP for considering that the cap on gas is counterproductive and for calling it the “Iberian scam.” The data does support the Government because it has benefited consumers in the regulated market, and it has claimed so. However, the popular ones reaffirm that the mechanism is a “scam” because of the “negative effects” it is having. “The Iberian mechanism is not the solution that the PP proposed or wanted, we said that it would bring negative effects and that it was a scam for all Spaniards, as is being verified,” said the PP deputy yesterday in the Congress of the Deputies, Juan Diego Requena.