Wednesday, December 1

The plan to make electricity cheaper: new energy auction and reinforcement of the social bond

The average price of electricity in the wholesale market today is 127.36 euros per megawatt hour (MWh), which represents a decrease of 4% compared to the price yesterday, when the historical maximum was recorded for a Monday. The price of the “pool” is three times the price that marked the second Tuesday of September last year (41.54 euros), according to data from the market operator OMIE.

Behind these high prices are the rise in gas prices, the increase in the price of CO2 emission rights and the increase in demand due to economic recovery and high temperatures. “The gas outlook continues to be worrisome” and, therefore, the Government has been working since the beginning of summer on a package of additional measures, said the third vice president and minister for the Energy Transition, Teresa Ribera, who is confident of being able to carry out these measures. to the Council of Ministers in the coming weeks.

These measures will include the “strengthening” of coverage for vulnerable consumers, which will entail changes in the social bonus, and measures to ensure that certain practices in the use of hydroelectric concessions (for example, offering production – which is adjustable – when see that the price will be the highest to maximize your profits) do not turn against consumers. To do this, a minimum flow rate will be set to avoid draining the swamps.

In addition, “alternative” market mechanisms will be created compatible with Community law so that electricity production companies with a “significant weight” in the sector must sell part of their energy to small traders or industrialists “at a price set by auction. “said Minister Ribera.


Europe does not allow governments to set prices for technologies such as hydroelectric or nuclear (cheaper to produce), highlighted Ribera, who stressed that for this reason they are working on bids in which the different technologies auction their production at the price at the that small traders or industrialists want to buy it. “Obviously there will be a floor, which are the costs, but not because the Government decides and publishes in a compulsory way the price at which it must be sold, because this is not allowed by Europe”The minister added, referring to the request of her government partners (United We Can) to intervene in the price of hydroelectric or nuclear power.

For its part, Nadia Calvin assured that these auctions will serve to “Take a part of the energy from the wholesale market and reinforce elements that separate the bill that citizens really pay from the evolution of the market.”

Ribera He insisted that although the rise in the pool is striking, the important thing is that nobody is overwhelmed by it, because you have to see what happens with the invoice and not only with the wholesale market, to which he added that the objective, advanced by the President of the Government himself, Pedro Sánchez, is that the bill at the end of the year is the same as that of 2018, when they reached the Executive.

The Minister of Labor, Yolanda Díaz, insisted yesterday in Oviedo that “it is time to move from words to deeds” because the price of electricity “is a problem for families, for the self-employed and for small companies” in the country. “These days I am in the North and in small businesses they told me that they were paying electricity bills that are impossible. We are talking about freelancers and small companies and it is becoming a huge problem for a fair recovery ”, said Yolanda Díaz. The Minister showed “satisfaction” with the fact that the President has promised to lower the price of electricity before the end of 2021, although she limited the impact of the measure by highlighting the reference year that Pedro Sánchez takes to establish the reduction . “It is true that he spoke of a price for 2018, which was already very high too: the megawatt hour was at 57 euros. But I remain with the promise of the President of the Government and therefore I insist that it is the moment of deeds and not words, ”said Díaz.

The deputy secretary general of the PSOE, the Asturian Adriana Lastra, expressed yesterday the conviction of his party that there will be an agreement with United We Can on the necessary measures to lower the price of the electricity bill. “We always, always reach an agreement, and that’s how it will be,” Lastra guaranteed.

For its part, The President of the Principality, Adrián Barbón, insisted this Monday that it is necessary to lower the cost of energy for electro-intensive companies. “We value all the progress that has been made, such as the increase in compensation for CO2 overruns, but we also warn that it is insufficient,” he said.

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