The European Commission did not listen heart the Spanish proposal to reform the electricity market, calling for the establishment of regulated price for nuclear and hydraulic It thinks it will create “regulatory uncertainty” and “scare new investment,” according to community sources.
Brussels presented its approach to market renewal this Tuesday, which includes maintaining and promoting the marginal pricing system (encouraged by the majority of Europe). bilateral contracts reduction between generators and energy consumers (so-called PPA) some obstacles and together regulated price auctions for New renewable investmentsat the same time nuclear.
The vehicles are the same ones Spain intends to use and the ones defended by the big European energy companies. big difference raised by the Ministry of Ecological Transition. Brussels expands regulated prices to already installed nuclear and hydraulics, while focusing only on new investments. “Inside context of high prices electricity, these contracts can immediately lower prices for consumersand to provide manufacturers with regulatory certainty”, defended the steering circle in its proposal. Teresa Ribera.
Brussels, for its part, in the documents attached to its offer, The “main” advantage of regulated prices “when properly designed” — “income guarantee for generators, limit excess income in an environment of high market prices and at the same time reduce the pressure on consumer bills“But it excludes the application of this measure to ‘old’ facilities.” Retroactive measures pose a riskto create regulatory uncertainty and fear to new investments”, disclose community resources.
“The probability of Member States adopting these measures seriously hinders the ability of investors to forecast their income. This too, investment risks and cost of capitalAt the expense of consumers and ultimately affects the efficiency and speed of the energy transition” provides the text adding that during the European Commission’s consultation period it was emphasized that this decision “produced”. major concernsIt involves “high legal risks” related to “locking in available capacity at excessively high price levels and consequent budgetary risk for Member States”.
Employers’ association of major European electricity companies eurelectric Brussels’ “emphasis on market-based solutions, the Commission’s most destructive ideas Referring to the Spanish idea “appearing in discussion”.
income limit
Brussels also upper limit of income from nuclear and hydraulic power plants After the crisis caused by the war in Ukraine – according to the Commission and the Spanish Government – this generation was encouraged to reduce the “heavenly benefits” it received due to the increase in the price of gas. The Commission says these measures can “benefit in times of energy crisis”, but making them permanent may entail “unnecessary risks and costs” and “damage forward markets” and affect “investment attractiveness”.
Brussels has set a ceiling on the price of these technologies. €180 per megawatt-hour ending 30 June 2023 and it will decide whether to extend it before April 30, 2023, when it expects to reach a conclusion about the revenue collected and its impact on consumers. Spain maintains a lower ceiling of 67 euros per megawatt hour, which has been extended until the end of this year. CEO Endesa, Jose Bogas, a few weeks ago the power company reduced its annual profit by 6,000 million euros because of the government limit.