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Income reduction for electricity producers: what’s new in Royal Decree-Law 23/2021?

On 26 October 2021, the Government has approved the Royal Decree-Law 23/2021 providing for new urgent measures in response to the on-going situation of high gas and electricity prices.

Among others, this Royal Decree-Law includes provisions affecting the so-called “mechanism for reducing the excess remuneration of the electricity market caused by the high price of natural gas in international markets” which was introduced as a temporary measure by Royal Decree-Law 17/2021.

On 30 September 2021, we published a Q&A addressing some of the more frequent questions about this mechanism, as initially regulated by Royal Decree-Law 17/2021. In this publication we address an update of our Q&A.

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