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Electricity will increase 40% in this month's bill

Electricity will increase 40% in this month’s bill

The alert was made by Nuno Ribeiro da Silva, President of Endesa. The increase will make up for the difference in Iberian gas brakes

Electricity will suffer an increase of about 40% “or more” in consumption bills for the month of July. The alert was made by Nuno Ribeiro da Silva, President of Endesa, in an interview with Business Magazine and antenna 1.

“In particular, from the end of August, but already in the electricity bills for July, people will have an unpleasant surprise. (…) We are talking about something within 40 percent or more of what people have paid “The electrician said.

According to the entrepreneur, some domestic consumers will start pushing the “gas brake”, an exception created for Portugal and Spain that allowed a discount on prices for natural gas used to produce electricity.

“It will appear on the bills that the diploma covered mechanism x to cap on gas prices, it is up to you, the happy or unhappy taxpayer, to contribute X plus the price the person had on their contract and that I am not surprised by anything over 40%. [relativamente àquilo que foi pago no mês anterior]Nuno Ribeiro da Silva explained.

Since the first week that the Iberian “gas brake” was applied, the price has been reduced by 10% if the cap on wholesale natural gas prices is not in effect. According to Nuno Ribeiro da Silva, “This difference between the real price of gas and the price at which a ‘cap’ has been put will be paid by consumers through compensation mechanisms.”

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EU rules state that a tariff deficit cannot be accumulated and must be paid by consumers. The head of Endesa confirms that the government is aware of the situation because the companies were alerted in a timely manner. For the businessman, only Spanish consumers will benefit from this measure.

“This measure was good for Spain because it has a very complex problem about the populist tariff created by the Spanish government, or the so-called PVPC, which is used by 11 million households, but it has no correspondence here,” says Nuno Ribeiro da Silva.

The number of affected consumers is expected to increase as contracts already signed before April 26 complete one year. Nuno Ribeiro da Silva acknowledges that consumers are already migrating to the regulated market.