Ribera’s regulated tariff reform clashes with consumers, independent power companies… and Acciona – CVBJ



Updated on Wednesday, November 10, 2021 – 01:32

They criticize the idea of ​​adjusting the revenues of premium renewables to avoid their temporary overpayment and of establishing a fixed price in the face of the volatility of the wholesale market.

The Vice-President of Ecological Transition, Teresa Ribera.

Renewable energy developers and independent power companies fear that the aborted major shutdown of the country’s three major utilities could end up on their income statement amid the government‘s regulatory turnaround to contain the rise in energy prices. electricity. They join the criticism of consumer associations, who ask the vice-president of Ecological Transition for caution, Therese Ribera, in the reform of the regulated electricity tariff (Voluntary Price for Small Consumers) to prevent the new mechanism from ending up harming competition and leaving a fixed price that is permanently high.

Ribera must take from another place the money that he will no longer withdraw from the income from Iberdrola, Endesa and Naturgy finance the sharp drop in the regulated part of the electricity bill approved in September in order to offset the record price of electricity on the wholesale market. After the step back taken with the electricity companies to prevent them from impacting the industry scissors, his magnifying glass now turns to the revenues of renewable installations which charge the market price but then have to adjust it to the regulated profitability of 7.4%. These facilities are currently charging a much higher price than this profitability target, so when the adjustment occurs, the collection right period will automatically be reduced.

However, the team led by Ribera believes that at present there is no room for temporary overpayments. Their solution is to establish a flat rate close to 60 euros per megawatt hour for these renewable energies and that they directly supply the domestic customers of the PVPC. In this way, Ribera will achieve a sharp reduction in the price of the recipe in the midst of a price crisis and help lower the CPI before it begins to cause direct damage to the economy.

The proposal has the approval of major power companies and, however, has met resistance from renewable energy promoters such as Acciona and others grouped within the employers’ association ELICA AEE, who consider that the change means reopening the box of thunders of recent cuts applied in Spain on renewable energies. “At the end of the day, renewables are paying off again. Regulatory uncertainty is returning, ”they say in one of the most affected entities, which requests anonymity because they are still in the negotiation phase with Ribera. The ministry guarantees that profitability will not be affected, although companies respond that the change will result in a significant adjustment in their cash flow and cash planning.

The major reform of the PVPC undertaken by Transicin Ecolgica also encountered, curiously, resistance from consumer associations. Facua He considers in statements to this newspaper that it is about a “patch” more and asks Ribera the direct intervention of the tariff to declare the major part of the households vulnerable to an energy crisis occurring from which they will be able to escape. . In the OCU, For their part, they believe that setting the price at the supposed 60 euros carries the risk that when the market falls after this economic situation, this reference will end up being very high.

Outside 2021, the annual energy cost has only exceeded 60 euros once in the past 13 years. “If PVPC is more expensive than the market in the future, customers will migrate to the liberalized market, where we consider that there are not yet sufficiently transparent competitive conditions,” said a spokesperson for the association.

Oddly enough, and for totally different reasons, the pricing of PVPC has also aroused the suspicion of independent electricity traders from the country’s major energy groups. These companies consider that if the government establishes a price of 60 euros per megawatt hour, this will cause an immediate flight of consumers at the regulated tariff, whose offer is limited to the giants of the sector. “The regulated tariff must reflect market prices, which are also the result of an international situation, and free competition between traders must offer an affordable price to the consumer, but traders should not have to compete with PVPC”, explains the president. one of these groups.

These companies include mid-sized groups such as Axpo, Fenie, Factor Energa, Nexus, Cepsa or BP. These companies have asked rnica to avoid being the big losers in the adjustment and they are asking Ribera not to regulate until they can make their case to him. In the next few days, they will hold a meeting with the ministry, which is seeking a consensual agreement with everyone to avoid another step backwards like the one that took the power outage.

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