July 6, 2020

The Government proposes to temporarily freeze electric tolls

The Ministry of Ecological Transition has submitted an order to public information under which access electric tolls will be re-frozen in January, due to the methodology of the National Commission of Markets and Competition (CNMC), competent in the matter is not yet approved.

In the memorandum of the order, the Ministry explains that Royal Decree-Law 1/2019, of January 11, involved a reorganization of jurisdiction according to which it is up to the Government to approve the structure, methodology and values ​​of the charges of the electrical system and CNMC establish the structure, methodology and values ​​of access tolls to electricity networks.

Both the Government and the CNMC have initiated the procedures of a royal decree that regulates the methodology of charges and a proposal to circulate that establishes the methodology for the calculation of the tolls of transport and distribution of electricity, and that involve approximately a third of the electricity bill.

However, to date none of them is approved and, given this situation and based on the second transitory provision of the aforementioned royal decree, "the attribution to approve tolls and charges, on a temporary basis will fall on the Minister for Transition Ecological, "adds the text.

Thus, the order proposes to extend, on a temporary basis, the access tolls for the year 2020, "until the approval of the methodologies of charges of the electrical system and network tolls, as well as the respective rules of application by which set their prices. "

The order also includes extending the prices and fees necessary for the operation of the electrical system, among which are the unit prices for financing capacity payments and the costs defined as quotas with specific destinations.

It also establishes the annuities to satisfy the payment of the previous deficits and mismatches, and establish the provisional remuneration of the Iberian Energy Market Operator, Spanish Pole, and prices to be charged to the agents.

Those interested in submitting allegations will have a deadline from today until December 17 to do so.

The publication of the proposed order in the Official State Gazette (BOE) arrives one day after the CNMC communicates its decision to forward to the State Council its draft circular establishing the methodology for the calculation of tolls of transport and distribution of electricity in which it poses an average reduction of 5.6% of the tolls of the consumers.

This draft circular is referred to the State Council, through the Ministry of Economy, once the observations of the Ministry for Ecological Transition and the 52 agents that participated during the public hearing procedure were evaluated, the regulatory body said Tuesday.

The purpose of the tolls, which will be frozen for the sixth consecutive year, is to defray the regulated costs of the electrical system, which would reduce the amount paid by consumers in their electricity bill.

The previous government withdrew powers from the CNMC in 2014, limiting its ability to act on electricity rates, so that the commission validates the methodology and the Government set tolls.

The European Commission considered that the Executive could not assume the capacity to fix these tolls and, to avoid a penalty for this reason, the redistribution of powers was approved.

. (tagsToTranslate) Government (t) proposes (t) freeze (t) transiently (t) electric

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