Decree Law 33/2022 of May 14 (“Decree Law”) establishes a temporary mechanism for setting prices in the Iberian Electricity Market (“MIBEL”), by setting a benchmark price for the natural gas consumed when generating electricity traded on the market, to reduce the respective prices.
The temporary mechanism establishes an initial benchmark price of €40/MWh for the first six months, after which it will increase by €5/MWh per month.
There are administrative penalties for failing to comply with some of the obligations established in this decree law.
The Decree law entered into force on May 15, 2022, and it will remain in force until May 31, 2023.
Due to the integration of the Spanish and Portuguese electricity markets in the Iberian Electricity Market, the adjustment mechanism is adopted in a simultaneous and coordinated manner in the Iberian Peninsula. In Spain the adjustment mechanism was established through Royal Decree-Law 10/2022. More information can be found in our Legal Flash on Royal Decree-Law 10/2022 here