The use of the MIBGAS natural gas price for the electricity market PGN in the electrical adjustment mechanism represented a saving of €2.84 billion in three months

14/11/2022

On 14 November 2022 the MIBGAS chairman, Raúl Yunta Huete, took part in the GasIndustrial Conference, during which he referred to the savings made by using MIBGAS for the gas market. He drew attention to a study undertaken by MIBGAS, pointing out that, for the period between 15 June and 30 September 2022, and assuming that the entire Spanish demand for gas was valued at the MIBGAS cost, this would represent a saving of €5.49 billion with respect to its TTF valuation.

He also expanded on this information by going on to refer to the savings for the electricity market by highlighting the following:

  • During the period between 15 June and 30 September 2022, use of the MIBGAS PGN in the electrical adjustment mechanism represented a saving of €2.84 billion for non-exempt electricity demand (PVPC and other non-price coverage demand).
  • With respect to the same period, the saving made by having taken the MIBGAS PVB gas price instead of the TTF meant an additional saving for the non-exempt electricity demand of €2.82 billion.

As a result, the existence of organised market (MIBGAS) price signals in PVB enabled the introduction of savings in the electricity price adjustment mechanism at a level equal to that introduced by the selfsame adjustment mechanism.

Thus, the use of MIBGAS PVB, with a more competitive level of prices than those of the central European markets and lower than prices considered as benchmarks in Europe (TTF, in the main) generates a number of noteworthy savings for consumers compared to the other price scenarios.

The continuing increase of liquidity in MIBGAS strengthens its usefulness and consolidates its price signal.