Inactive gas mechanism since last week

It has been a few days since the Iberian exception, which started to be applied from June 2022 and has helped to contain electricity prices on the Iberian Peninsula for many months, has been inactive.

Due to low demand and good temperatures in recent days, since last Thursday the price of gas at MIBGAS is below €55/MWh, the limit at which the price ceiling is set for this month, and for this reason the compensation mechanism has not been applied since then.

If the gas market price continues at these levels, there will be fewer and fewer occasions when the adjustment mechanism is activated, as dictated by the regulations. Since last December, the compensation limit price has been increased by €5/MWh each month until it reaches €70/MWh next May.

Taking into account the current situation, it remains to be seen whether the Iberian exception will be extended as planned by the government and, if so, under what conditions.