Electricity price set for the first quarter of 2014

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1. The energy cost used to calculate the voluntary price for small consumers for the first quarter of 2014 is set using forward market quotes from OMIP over the last six months, instead of the annulled CESUR auction. The price is set at €48.48/MWh for the base product and €56.27/MWh for the peak product.
2. A hedging mechanism is created for reference retailers: differences between the set price and the market price are settled through price difference settlements and are included in the calculation of the next period's price.
3. With effect from January 1, 2014, Royal Decree 302/2011, on the sale of products settled by price differences, is repealed, along with any rules that conflict with this royal decree-lawroyal decree-law A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses..
4. The 2014 State Budget Law is amended so that contributions to funding the electricity sector are calculated under the formula of the Electricity Sector Law, which allocates the full amount collected under the energy sustainability tax measures law to that purpose.
5. The Government and the Minister of Industry, Energy and Tourism may issue any rules needed to develop the law, which takes effect the day after its publication in the Official State Gazette.

Who it affects

• Consumers on the voluntary price for small consumers (formerly the last resort tariff): Their electricity price for the first quarter of 2014 is calculated using the newly set prices, avoiding the increase the annulled auction would have caused.
• Reference retailers (comercializadoras de referencia): They must apply the price difference hedging mechanism during the first quarter of 2014.
• The body in charge of settlements in the electricity sector: It must calculate, manage and settle the assigned products, and report monthly to the State Secretariat for Energy.
• The electricity sector as a whole: The source of funding for its costs changes through the amendment of the State Budget.

Words worth knowing

Precio voluntario para el pequeño consumidor (voluntary price for small consumers)

Maximum price that reference retailers can charge consumers who meet the requirements to qualify for it. It replaced the old last resort tariff.

Tarifa de último recurso (last resort tariff)

Former regulated electricity price for certain consumers, such as vulnerable ones or those without a contract on the free market.

Subasta CESUR (CESUR auction)

Quarterly auction where retailers bought energy to calculate the cost of the regulated tariff. The December 2013 auction was declared invalid.

Comercializadora de referencia (reference retailer)

Company required to supply electricity to consumers on the regulated price.

Mercado a plazo (forward market, OMIP)

Market where future energy contracts are traded, with public prices used here as a reference.

royal decree-law

A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.

decree-law

A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries