Spain He defends it before the European Commission. interfere price nuclear energy and hydraulic Might “reduce prices now” (electricity) for consumers”. This is evident in the electricity market reform proposal sent by the Spanish Government to Brussels this Tuesday, to which El Periódico de Catalunya of the Prensa Ibérica group has been granted access.. This statement contradicts the words of Teresa Ribera, the third vice president and Minister of Ecological Transition, who acknowledged in her presentation that the Spanish approach “is unlikely to have an immediate effect in a significant drop in prices”.
Inside informal worksheet related to seven leavesThe executive argues that current market prevents wholesaler price reflect average cost of all technologies (price is what determines the most expensive technology) and also “Excessive rent” to producers When more expensive technologies have higher costs (as in now fired gas). According to the government, these “failures” in the functioning of the current market, “The price crisis will not be short-lived.”
” futures transactions indicates that electricity prices will continue to rise. above-average costs (of all technologies) for years to come,” the text warns. To maintain this claim, example related to Germanywith a quote 364 euros per megawatt-hour (MWh) 2023, 256 Euros per MWh in 2024 Y 177 euros per MWh in 2025”. “These price levels will continue to worsen the situation. inflationary pressuresundermine, competitiveness of our industry, impoverished consumers. and prevent electrification” he warns. “If electricity prices could rise to €400 per MWh in a given year, who would want to invest in an electric car or heat pump?” he adds.
In this context, Spain proposes to limit and encourage the existing electricity market (managed by a marginalist system) to gas. Fixed-price regulated contracts for renewable energy, nuclear and hydropoweris required in these last two cases. ” european legal framework should Allowing the government to sign contracts with these producers (nuclear and hydraulic) at a regulated price. Inside context of high prices electricity, these contracts can immediately lower prices for consumersand gives manufacturers regulatory certainty,” he adds.
Spanish approach received “great interest” among the rest european partnersas declared by the third vice-president and Minister of Ecological Transition, Teresa Ribera, before you enter the forum ‘Spain Investors Day’ In his letter to the Commission, Spain’s ‘no touching’ approach to the functioning of the daily market, “simplify and shorten” the implementation of this reform.
Less enthusiasm aroused Ribera’s plan Among the Spanish electricity sectorrepresented by employer aelecThose who accuse the government of not participating in the design of a new electricity market – “there are countries where expert groups and public consultations are meeting”, they explain – and warn that its implementation “could happen”. endanger the free market of the electricity industry. “This offer is Increasing regulatory uncertainty Y influencing investments Sources from the association made up of three out of four people explain that the industry must drive to achieve the urgent energy transition. big electric Spanish (Iberdrola, Endesa and EDP).
These companies argue that they “own more than 70 percent of the energy.” already soldfrom here wholesaler doesn’t get market prices” and one Cost benefit analysis between inferences proposed electricity market reform. industry operators in order not to hurts investments and expansion plans They also argue that “the Spanish electricity sector has signed the cheapest PPAs in Europe – power buy and sell agreements”. However, the Government futures markets has not improved significantly in the last 20 years for long-term price protection and misleading act like they’re going to do it in the next 20.”