July 25, 2021

Ribera recommended in April the regulated tariff for electricity, which has since risen 70%




The regulated tariff of light “It is always the most advantageous for a domestic consumer”. This is how resoundingly the now third vice president of the Government and Minister for the Ecological Transition, Teresa Ribera, expressed herself last April.

This recommendation, which could be correct in a normal market situation, has been poisoned for consumers, since since the minister said it, on April 7, until today, that regulated rate or pvpc has become more expensive by 70%.

And it cannot be said that electricity prices have skyrocketed and have dislodged the minister, since in those days the cost of this energy in the wholesale market began to exceed 60 euros per megawatt hour (MWh). April closed with an average price of 65.02 euros, a figure that increased to 67.12 in May and up to 83.29 in June.

That day, Teresa Ribera also assured in a forum that, with the new billing of electricity consumption –which came into force in June–, “the most attentive consumer will benefit. there will be savings for practically all domestic consumers that have the pvpc rate ».

Wrong predictions

These errors of calculation of the Ministry for the Ecological Transition with the electricity market are not new, since three months before, in mid-January, after the passage of the storm Filomena, the minister predicted after a Council of Ministers that the cost of electricity would drop 45% in the second quarter compared to the average of 80 euros during the cold weather. That is, about 56 euros per MWh. Well, the average for the second quarter has touched 72 euros, 28% more than expected by that ministry.

Teresa Ribera also predicted a downward trend due to the massive influx of renewables that will allow the prices of the Spanish energy market to be in 2022 and 2023 “below traditionally cheaper markets, such as German or French.”

Industry sources trust that this time their forecasts will be met, since the price of electricity in the Spanish wholesale market is 13% more expensive than, for example, in France and Germany. Only Italy has the higher prices than Spain.

Echenique opposed the VAT reduction

Also in mid-January, the spokesperson for United We Can in Congress, Pablo Echenique, criticized “the campañote of the right” to lower the VAT of electricity, a measure that “does not cost a single euro to the electricity companies and reduces state revenues, damaging health, education and dependency.” Five months later, the coalition government has done just the opposite and has lowered the VAT from 21% to 10%

Fortunately, electricity prices in the wholesale market are taking a slight respite today and they stand at 95.89 euros per megawatt hour (MWh) as an average price. There will be maximums of 106.91 euros and minimums of 75.80 euros, according to OMIE, the market manager. The average price will be the lowest of the week, which started at 98.80 and took a sharp rise (101.82 on Tuesday) to reach a new all-time high of 106.57 on Wednesday. Today’s average price is 101.52 euros per MWh. The average for the month of July is 92.61 euros, a figure never seen before in the Spanish wholesale market.

On the rise in electricity prices in recent weeks, The UGT has stated that the reduction of VAT to 10% “must be a permanent measure”. In addition, they consider that “it is necessary to undertake an urgent and profound reform of the electricity market by establishing a fairer and more transparent pricing system.”

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