European electricity companies charge against the cut to the sector in Spain and ask that it not be extended to other EU countries



The CEOs of some large European public service companies, such as Enel (owner of Endesa), Orsted, Vattenfall and EDP, claim to avoid drastic interventions in the market with a view to halting the exponential rise in electricity prices, such as the cut to the extraordinary profits of the sector that it has approved in Spain, according to a letter that will be sent to the governments of the EU this week and that it has published this Wednesday ‘Financial times‘.

The letter was known on the eve of the European Commission presenting its long-awaited “toolbox” or recommendations to the member states to respond to the energy crisis.

Brussels opens up to centralized gas purchases and strategic community reserves, as Spain had claimed, but leaves for later the possibility of reforming the electricity wholesale market, following the request of a block of countries led by Madrid and Paris that have urged to reform the marginalist model, by which all generation technologies they benefit from the gas escalation. This fuel has risen 400% since April, triggering the European wholesale electricity markets. The Spanish pool is going to surpass the barrier of 200 euros per megawatt / hour this Thursday when the average price stands at 215.63 euros.

The letter from the executives of the electricity companies has transpired on the eve of this Thursday that Congress votes to validate the cut approved in September by the Government to the so-called benefits that have fallen from the sky of Spanish companies due to the rise in gas. In it, more than 15 CEOs of EU ‘utilities’ warn member states against adopting what they describe as “myopic political measures” that, they say, can undermine market confidence and derail the green transition.

Some 20 EU governments have announced emergency plans to protect consumers from rising costs, although only Spain has implemented a “windfall tax” on the profits of electricity companies. According to Kristian Ruby, secretary general of Eurelectric, responsible for organizing the letter, this decision contravenes European regulations.

“If all member states [toman medidas] like Spain, there is no doubt that it will slow down or even derail the energy transition, “said the head of the European electricity lobby.

The third vice president of the Government, Teresa Ribera, concludes this Wednesday with the heads of Iberdrola and Naturgy the round of meetings that began last week with the executives of the Spanish electricity companies on the eve of the validation of the decree.

This Wednesday, the President of the Government, Pedro Sánchez, affirmed in Congress that the Government is working with the industry and electricity companies to “clarify and specify what is necessary” of the norm that is voted on Thursday in Congress, with the in order to “ensure” that these do not raise its bill to the industry and also to facilitate new contracts “at affordable prices”.

“This is what the Government is working on, with the electricity companies and with the industry: clarifying and specifying what is missing from decree 17/2021,” Sánchez said, before a notice from the PNV that told him that play your future.

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