It has finally been approved and confirmed with the last signature providing Spain with the highly anticipated price cap.
As of 15th June 2022, the Royal Decree-Law 10/2022 that limits the price of gas (which plays a big part in the cost of electricity) will be implemented and should start to show the energy market an expected reduction of around 15% in consumers bills.
However, do not get too overly excited, for the majority of ¡Si! Compare clients you will not see a 15% reduction.
We have kept you up to date before and during the time the market spiralled out of control. With our planning and continuous tracking of the market prices, you would have been paying less than the expected 15% reduction since we have been suggesting the best prices from the start. The market is complicated and is not a one size fits all for consumers. A number of factors must be taken into account before it is possible to know which will be the best option for our clients and their individual needs. Firstly, it is essential we observe the next two weeks of market prices before any recommendations can be made.
New prices may be launched and variable rates may become favourable again, but no one can predict this, therefore we must be patient and go with the facts.
To ensure that you remain on the lowest prices, we will continue to monitor and watch for any changes that will be of benefit and inform you as they take place.
Also take note, for consumers that remained or take the option of an Index rate (market variable), your bill will start to show a newly added surcharge. This new surcharge is part of the decree. It is the method in which the power plants will be compensated for the reduction in price due to the price cap.
It may be sounding complicated, it is! In one hand measures are being taken to reduce the price of gas/ electricity, and in the other, a surcharge added to pay for the reduction in price.
Simply put, the price cap will be enforced as of 15th June 2022. Consumers with market variable rates may see a reduction of around 15%, but see a small surcharge added to their bill. Clients on a fixed rate will not see any change.
¡Si! Compare will continue to keep you notified on when a change is beneficial and advise on market price drops.
We thank you for your confidence in our services and look forward to sending our next update of price changes.
Have a great day.
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