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The income reduction for electric producers in Royal Decree-Law 17/2021

Faced with surging energy price due to the shock in the offer that is affecting natural gas markets, the Spanish Government has adopted certain temporary measures (from 16 September 2021 to 31 March 2022) that aim at reducing the electric bill for consumers, implemented by Royal Decree-Law 17/2021, of 14 September. 

Title III of the RDL 17/2021 provides for the so-called “mechanism for reducing the excess remuneration of the electricity market caused by the high price of natural gas in international markets”. In this publication we address some of the more frequent questions about this mechanism which have arisen and which may be of interest for investors in general.

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