The Government intends to eliminate part of the electricity overpayment in the next Council of Ministers. The Ministry for the Ecological Transition will bring to this meeting a proposal to reduce the so-called ‘benefits fallen from the sky’ that affect nuclear and hydroelectric subtracting part of the dividends for the CO2 emission rights, according to Teresa Ribera’s department.
Sources of sector, they assure that this decision “is a market intervention what puts the future of PNIEC at risk (National Integrated Energy and Climate Plan) “. In addition, they insist that” neither the hydroelectric or nuclear plants are amortized. “” Every year they are carried out large investments to be amortized“.
In the government agreement signed between PSOE and Podemos, both formations promised to eliminate the overpayment that benefits the nuclear and hydraulic. The Spanish electrical system is marginalistIn other words, the latest technology to match supply and demand is what sets the price for the rest. Thus, if the latest technology to enter is the combined cyclesCurrently affected by the high prices of natural gas and CO2 emission rights, the rest of the technologies are rewarded at the same price, although their cost is much lower.
“Even when only the 9% of electricity on the market is of fossil origin, the marginalist system (by European regulations) means that this extra cost, of the technology that sets the price at all times, is paid equally to all non-emitting infra-marginal technologies “, indicates the Government. For this reason, the Executive proposes to give light green this Tuesday to the processing of a preliminary draft of the Law of “reduction of part of the dividend carbon at non-emitting plants prior to 2005 that they sell energy in the market “.
Nuclear and hydroelectric will be the most affected, although it will also affect the remuneration of some renewables. “The proposal does not affect no plants after 2005, nor those that have regulated remuneration, nor those that take part in auctions or any present or future investment initiative, “say sources from the Ribera department. But nor to overpayment when it is due to other reasons, other than the cost of CO2 emission rights, as happened during the Filomena storm due to the lack of wind and the rise in natural gas prices.
The minister Teresa Ribera had announced in January, after the rise in electricity prices due to the storm Filomena, that the Government was analyzing “cushion mechanisms” to eliminate this overpayment. But, he added, it had to be a proposal that respects the European regulatory framework and legal certainty, as well as the “legitimate expectations of investors who made their investment decisions in non-emitting technologies after the entry into force of the European system. of emission rights (year 2005) “. In this sense, Ecological Transition points out that the Judgment of the Court of Justice of the European Union of October 17, 2013 on a very similar mechanism in force in Spain between 2006 and 2009
And now with a new escalation of electricity prices in the wholesale market (so far this month the price per megawatt-hour has risen to an average of 65 euros, higher than the month of January) due to the rise in prices in the market for CO2 emission rights and natural gas prices that affect, mainly combined cycles. Thus, according to the Government, this measure “is will alleviate the effect on the bill of consumers once it enters into force “.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.