August 3, 2021

The price of light would be progressive and more expensive the more it is consumed

The price of light would be progressive and more expensive the more it is consumed


MadridUpdated:

The draft Budget for 2019 agreed between the PSOE and Unidos Podemos plans to modify the electricity bill so that the cost to pay for consumers for the first kilowatt hours (kWh) is lower than the following, encouraging energy efficiency. This is a mechanism already used by other companies, such as water, whose price has some sections depending on their consumption.

They will also carry out a "deep" reform of the electric social bond and the creation of a general bond, that will include the gas bonus, in order to allow "any home can make a minimum consumption of energy."

These energy social bonds will be automatic and the per capita income of the vulnerable household will be the only criterion of adjudication, with the exception that criteria of dependency, disability and other situations such as single-parent families will also be included.

In addition, it will be maintained that financing is fully covered by all companies in the sector, proportionally to its turnover volume. However, last Friday, the Minister of Ecological Transition, Teresa Ribera, said after the Council of Ministers that the new social thermal bond (heating) would be financed by the State.

On the other hand, the necessary regulatory changes will be made in relation to the operation of the electricity market for end with "over-compensation" (known as "profits fallen from the sky") that receive in the wholesale market certain technologies-hydraulic and nuclear-that were installed in a different regulatory framework, prior to liberalization, and have more than recovered their investment costs.

The document points out that "a possibility could be establish a limit to what certain technologies can charge in the electricity market. The difference between the market price and that limit will be considered an income of the electricity system and will be directly aimed at lowering the electricity bill of all consumers ».

As well Capacity payments will be reviewed, "So that they are limited to conditional measures, transitory, without distortions, of last resort and in accordance with the fulfillment of the objectives of reducing the price of electricity, excluding the possibility of incurring illegal aid and in accordance at all times with the current European regulations on the subject ».

PSOE and Unidos Podemos have agreed as a measure to promote electric self-consumption establish the regulation of the remuneration of the energy discharged to the grid by self-consumption facilities that should be, at least, equal to the value of the wholesale electricity market. In addition, simplified mechanisms for compensation of energy exported and imported from the grid by self-consumption facilities should be established.

With regard to renewables, they will approve a plan for boost to the repowering of existing plants with the aim of recovering "the attractiveness of investing" in them in order to send the appropriate signals for the reduction in costs of these technologies, the fulfillment of international objectives, security of supply and the positive impact they exert on the price.

For this, also the requirements, rules and announcements of renewable auctions will be modified, establishing as a fundamental criterion the cost of generating each technology and enabling the participation of local entities, citizens or cooperatives.

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