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Electric companies condemn government’s “ambiguity” in talks with Brussels on gas cap

The Union of Electric Power Companies (ALEC) has condemned the “ambiguity” with which the government is leading talks in Brussels…

By admin , in news , at May 10, 2022

The Union of Electric Power Companies (ALEC) has condemned the “ambiguity” with which the government is leading talks in Brussels to reach the so-called Iberian exceptionMechanism to cap the price of natural gas for electricity generation at an average price of 50 euros per megawatt/hour (MWh) over a twelve-month period.

“Electric companies, until now, had little knowledge of what they intended to be approved, beyond what appeared in the media. We have a propaganda too high and we do not know the terms under which negotiations are currently being held,” said the association’s director of regulation, made up of iberdrola, Endesa You EDP ​​SpainPedro González, in statements from the TV3 program ‘Els Matins’.

Similarly, Gonzalez thought about this «who will compensate That the price for this intervention has to be given to the gas companies».

“We do not know. We do not know the terms of application of this remedy and its detailed implications. Therefore, it is quite complex,” he said.

Will reduce fare offer

In addition, he warned of reducing and even terminating the offer of power tariffs if the executive decided to interfere with their pricing. “If this is done, it could create a liquidity crunch in the futures markets, and these types of transactions would disappear. Perhaps the only solution left for the client is a daily market rate, They found that there is no such proposal as now,” he said.

Similarly, he stressed that the “great unknown” is how these compensations will be paid to the gas companies. “It seems complicated that consumers who do not benefit from the measure have to pay for it,” he warned, specifying that given the energy consumption of Spain as a whole, “more or less, three out of four Energy units are contracted on a term basis and hence, they will not benefit directly,

Similarly, he denounced that since the government announced its intention to cap the price of gas, the installment market, which allows energy to be contracted over the long term, has reduced its contract volume by more than 70%. have make.

in his opinion, Iberian Extraordinary This “causes a separation that creates different situations.” “There is uncertainty in this because the agents do not know what is going to happen. They are going to be exposed to a different functioning of the market and the terms of the contract are, predictably, different. This is a very high source of uncertainty which we are already witnessing, we are already suffering from it,” he assured.

Finally, the Electricity Employer states that “it does not mean that susceptible people are exposed to a market volatility that they do not understand and have no reason to understand”, because free social It is integrated into the regulated rate, which sets its price hourly, subject to market fluctuations.

“Sources should be found to cover vulnerable consumers by offering them products at stable prices and with corresponding discounts to tackle weak consumption. Thinking of the most vulnerable consumers, it is necessary to improve this regulated rate”, he concluded.