On March 29, the Royal Decree 3/2023 of March 28 was published in the BOE, extending the cost adjustment mechanism for reducing the price of electricity production until December 31, 2023.

Although it is expected that the mechanism will not need to be activated in the coming months due to favorable gas prices, it has been decided to maintain and extend it until December 31, 2023 to protect consumers in case gas prices experience sudden increases again.

The formula for calculating the adjustment price will be the same as before, but the gas reference prices used in the calculation will be different from those stipulated previously. Initially, the price was €40/MWh for the first 6 months, and from there it increased by €5/MWh each month, ending at €70/MWh in May. With the new Royal Decree, and starting on April 1, a linear increase of €1.1/MWh is agreed, from the current €55/MWh up to €65/MWh in December 2023.

According to the new regulations, all hedging instruments signed before March 7, 2023, as well as renewals, price revisions or extensions carried out before that date, will be exempt from paying the corresponding mechanism for the daily market from June 1.

Regarding the activation of the mechanism, it will have no effect if the MIBGAS price is lower than the reference price.