Decree-Law no. 33/2022 of 14 May establishes an exceptional and temporary mechanism for adjusting the costs of electricity production, reflecting the formation of the market price of electricity in the wholesale benchmark of the Iberian Electricity Market (MIBEL) .

Beneficiaries of the Scheme

a) thermoelectric power plants corresponding to natural gas combined cycle plants;

b) cogeneration installations under the market regime;

c) traders, market agents and consumers of electricity within the scope of the wholesale electricity market.

The production of the aforementioned thermoelectric power plants or cogeneration facilities carried out under physical bilateral contracts is excluded from the regime.


Price formation and market references

• The formation of the price for the Portuguese price area of ​​the MIBEL, including the daily market and the different intraday market references, is carried out in accordance with the daily market operating rules in force at all times for application by the respective nominated operator of the MIBEL electricity market;

• For the purposes of setting the price, the supply units domiciled in the Portuguese price area of ​​the MIBEL that correspond to the thermoelectric power plants and cogeneration facilities referred to make their offers on the market, internalizing the calculated adjustment.


Adjustment calculation

The adjustment of electricity production costs for thermoelectric power plants and cogeneration facilities is determined by the nominated operator of the electricity market in accordance with the following expression provided for in the diploma.

From the first day of the seventh month in which the adjustment mechanism is applied, the value of the PRGN variable incorporates a nominal increase of €5/MWh, which is repeated on the first day of the following months over the preceding month.


Repercussion

• The calculation of the value of the global adjustment to be passed on during the negotiation period is the responsibility of the nominated operator of the electricity market within the scope of the electricity markets under its management;

• In general terms, the cost of the adjustment amount is exclusively attributable to electricity consumers within the scope of the wholesale electricity market;

• The cost of settlement of the market adjustment value is not attributed to certain consumptions, such as:

o Pumping of hydroelectric power plants;

o Auxiliary services of the remaining electricity generation centres;

o Storage systems, namely batteries;

o Consumptions made under fixed-price electricity supply contracts signed before 26 April 2022.

The present diploma entered into force on May 15th and will remain in force until May 31, 2023.

For additional details, please contact us: gabinete.juridico@aip.pt.