June 15, 2021

The nuclear lobby threatens the closure of plants due to the government’s plan to cut its revenues


The Nuclear Forum has warned this Thursday that the draft law that the Government has just presented to cut the so-called bottom-line profits from hydro and nuclear, together with the taxation that nuclear power plants already support, “increase the financial asphyxia of the nuclear park and lead it to close its activity.”


The Government rules out the tax cut for nuclear power companies and Vox

The Government rules out the tax cut for nuclear power companies and Vox

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In a note, Foro Nuclear assures, contrary to what was stated on Tuesday by the fourth vice president and minister for the Ecological Transition, Teresa Ribera, that “nuclear power plants are not amortized” and their annual investments are close to 300 million. “Nuclear generation is currently at a loss as a result of disproportionate, discriminatory and confiscatory taxation.” On Tuesday, asked about the possibility of a nuclear shutdown, Ribera justified the cut because they are plants that have already been amortized with a “very high” profitability even after discounting the price of CO2.

“Foro Nuclear expresses its perplexity at the statements that the nuclear power plants are amortized and that they enjoy“ benefits that have fallen from the sky ”, as shown by the audited balance sheets and income statements of the companies that own the power plants, known to the Ministry for the Ecological Transition and the Demographic Challenge, the fixed assets pending amortization exceeds € 5,500 million, with more than € 3,000 million invested in the last 10 years alone ”.

The Forum emphasizes that in the exceptional year 2020, in which the wholesale electricity market fell to an all-time low of 34 euros, on average, “nuclear power plants had a negative cash flow of about € 500 million, according to the PwC report for Foro Nuclear, and losses of over € 1,000 million ”.

However, this year prices have recovered (they are around 80 euros, a level more typical of January than June) and the pool is already around 55 euros on average, after the spectacular increases in recent weeks, caused by the increase in prices. of CO2 emission rights, which nuclear plants do not support.

“Since 2005, taken as a reference in the draft Law, and until 2021, the taxes that support nuclear generation facilities have increased by about € 20 / MWh,” recalls the nuclear lobby. The centrals have been repeatedly requesting a review of the “extremely high” taxation they support. The Government has just rejected that possibility in response to a request from Vox.

Nuclear power plants “demand an adjusted but reasonable remuneration that makes viable a technology that is essential for the decarbonization of electricity generation, contemplated in the National Integrated Energy and Climate Plan 2021-2030 (PNIEC). The draft bill goes in the opposite direction and leads the nuclear park to closure ”, he insists.

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