The Iberian exception to the gas cap saves 5,600 million in three months
Spaniards would have saved 5,660 million euros on their electricity bills since the Iberian exception came into force And until September 30. This is the result of the study done by mibgas, responsible for the organized gas market in Spain and Portugal. This analysis allows validation Economic impact of cap on gas Designed by the government to deal with volatility in the European electricity market, a situation caused by the shutdown of natural gas from Russia.
The analysis takes national gas demand data from June 15 – the date the Iberian exception was negotiated by the European Commission’s executive – and September 30. He compared it The price of this claim refers to the PVB index set by Mibgas for Spain and Portugal rather than the Dutch TTF., is considered a reference indicator throughout the European continent. In recent months, the latter has been very volatile and set very high prices, up to 800 euros per megawatt hour (MWh) on certain summer days, compared to the 300 euros/MWh reached in Spain.
Thus, it evaluates the total cost of non-exempt demand of the Spanish electricity system, taking into account the application of the gas cap or not. The difference between the two values represents the total savings on electricity bills for the whole of Spain. Select Iberian PVB as indicator Compared to the marginal value set automatically by the market, i.e. a Savings in the market of 2,840 million euros.
Mibgas adds an additional cost to this calculation Referring to the Iberian exception to the TTF, which would have cost an additional 2,820 million euros for the total bill of Spanish consumers. Both amounts confirm the competitiveness of the Iberian gas market, which presented lower price levels than the markets of other European countries such as Italy, France or Germany, all of which refer to the Dutch indicator.
EU seeks new benchmark for gas
The European Commission has been forced by the exceptional situation of gas prices in Europe due to the cutoff of supplies from Russia. Acknowledge their energy market shortcomings, is heavily dependent on Russian gas. For this reason, Brussels is studying the creation of A A new indicator that replaces TTF as reference Noting that it does not faithfully reflect warehouse or market conditions for gas purchases.
For its design, the Commission has set up a working group which is conducting a study The performance of other indices is close to that of the new gas mixwhere he Liquefied natural gas (LNG) has gained special importance. Some of these indicators may be MibGas’s own PVB, which is based only on transactions in physical assets and does not include financial derivatives, or JKMAsian market benchmark.
The Mibgas study also includes this calculation to mean that this Asian indicator is to be taken as a reference, although it only affects LNG, which accounts for two thirds of the total gas consumed in Spain today. Same demand Referred to JKMA would have been generated Additional costs for customers of 560 million eurosIt is given a lower price than the TTF, but it is assumed to be far removed from the conditions of the European gas market as it represents distant geographical areas.
Once the national demand data for these hydrocarbons is taken, the comparison is also transferred to the gas market. Taking into account the overnight PVB index prices published by Mibgas, the total cost of gas consumed in Spain in these three and a half months is 13,707 million euros, which would have paid 19,195 million if it had been referenced. To TTF. difference between the two, 5,488 million, therefore saving for the Spanish gas market.
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