Urgent measures to mitigate the impact of rising natural gas prices on gas and electricity retail markets

Royal Decree-law 17/2021, of 14 September, on urgent measures to mitigate the impact of rising natural gas prices on gas and electricity retail markets was published in the Official State Bulletin (BOE) of 15 September 2021.

The regulation approved by the Council of Ministers, under Article 86 of the Spanish Constitution, contains a package of measures classified into the following blocks: (i) Consumer protection and energy taxation measures, (ii) Promotion of forward contracting through market mechanisms to allocate manageable and non-emitting infra-marginal energy, (iii) A mechanism to reduce the excess remuneration of the electricity market due to the high price of natural gas on international markets, (iv) Criteria for the rational use of water resources, (v) Limitation of the variation in the value of the cost of the raw material in the last resort tariff for natural gas; and (vi) Increase in the budgetary contribution to financing the costs of the electricity system.

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