Naturgy will benefit from gas price cap, according to Fitch

Naturgy will benefit from the implementation of the mechanism. limits gas price inside electricity marketAccording to the report of the credit rating agency Fitch. His argument is combined cycle power plants The so-called ‘Iberian exception’ will have a “higher load factor” when introduced due to the need to meet a greater French demand, and this will Francisco Reynes. Analyzing the measures taken by different governments on the ‘heavenly profits’ of electricity companies, this report is a report within the Government. higher tax burden to all of them energy companies (electricity, gas and oil).

Together loaded capacity The gas company, which accounts for about 30% of the 7,400 megawatt total, controls and operates the combined cycles park. they burn natural gas to obtain “more efficient” electricity according to its own definition on its website. These plants are the only plants that receive compensation to meet the market price of natural gas (Mibgas). And Fitch, “as a result of the measure (gas price ceiling)” higher load factor “to ensure french case as long as the (limited) interconnection capacity (2.8%) between the two countries allows” and “this is Benefit from Naturgy”.

The amount in which this benefit will be realized will depend on “renewable and hydropower generation level, demand and weather conditions” during the period when the measure is in effect (from 15 June to 31 May next year).

this interconnection with works in france maximum capacity for export The so-called ‘Iberian exception’ was launched for the first time since day 15. This is because the wholesale electricity in Spain is lower than in France, so this country ‘buys’ all the electricity it can get from Spain. And most of the production will cover this increased demand will come from combined cycles because, according to employers of Aelec electricity companies, generation with the rest of the technologies is not enough to meet Spanish demand, even less if increased.

Electricity bought by France sold at auction price without adding compensation, however, despite an increase in what is known as congestion rental (the result of the amount of energy exported to the neighboring country multiplied by the difference between the French and Spanish prices). These rents divided equally between the two countriesIrrespective of who the producer is and they are normally used as income from the transmission network in the case of Spain, but when this Iberian mechanism works reduce gas adjustment cost.

reduced capacity

Maximum interconnection capacity between Spain and France temporarily reduced According to sources in France, one of the power lines is out of service on the French side. Electricity Network. So, if the usual thing is to be able to carry around 2,900 megawatt-hours on average, it has now been cut to about 1,200 megawatt-hours. As a result, the linkage between Spain and France is very low — hardly making up about 2.8% of the total capacity of the Iberian system — and in fact, that was precisely one of the reasons why the European Commission accepted this proposal. a special treatment If there was a larger interconnection to Spain and Portugal otherwise, the flow between the two countries would increase.

The intention of the executive First offer to BrusselsWas there a double marriage? (switching between supply and demand) for an auction every hour before the electricity market at regular price To sell to France (as if there was no upper limit) and to make another offer for consumption in Spain and Portugal, where gas prices are limited. Thus, sales to France would have been prevented from reaching the ceiling. However, this option did not finally get European approval.

Reduce profit for gas

The rating agency also analyzes the deduction. Extraordinary benefits of electricity companies According to information provided by El Periódico de España, a newspaper of the Prensa Ibérica group, it was due to the increase in natural gas prices promoted by the Spanish Government in September last year and expected to be extended throughout the summer. The effect of this mechanism, which is expected to be a collection of approximately 2,000 million Euros in the first three months of the application, lower the electricity bill, however, it was reduced by the Government’s decision to exempt production, which was previously sold at a fixed price.

Most of the production is sold upfront to companies belonging to the same group or through purchase agreements or financial derivatives (…) financial impact was manageable aspect companies have been able to show that they are not taking advantage of it. “High prices scenario,” says Fitch in the report.

Source: Informacion


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