July 23, 2021

The State will contribute 1 billion to stop the rise in electricity | Companies

The State will contribute 1 billion to stop the rise in electricity | Companies



The government approved on Friday what may be the most important economic package of a legislature that is augurs short. Its about Royal decree law of urgent measures for the fair energy transition and the protection of consumers, to which he has had access Five days, whose main measures were announced by the Minister of Ecological Transition, Teresa Ribera, after the Council of Ministers. A plan of shock against the escalation of the prices of light, which began to hit this summer in the face of a newly constituted Government and which, as recognized in the explanatory memorandum of the norm, is not conjunctural, but "encloses structural elements".

As Ribera had advanced in his last appearance in the Congress of Deputies, the tax of 7% on the income of any electrical production is suspended. However, such suspension (or zeroing of the lien rate) will apply only for six months, coinciding with the autumn and winter seasons. Specifically, in the last quarter of this year and the first of 2019, when there is "the highest demand and the highest prices in the wholesale market," the RDL indicates.

In return, it is exempted from the Special Tax on Hydrocarbons (the misnamed green cent) to the production of electricity and the cogeneration of electricity and heat. A measure that will mainly affect gas-fired and coal-fired power plants, which are the most expensive in the marginal market and which they mark their price to other technologies when they are married.

A drop in the price of these plants will have a "multiplier effect" and will result, therefore, in a fall in the price of the pool. This tax, established by the Hydrocarbons Law, was activated by Law 15/2012, approved by the Government of Mariano Rajoy in the framework of its energy reform.

According to Teresa Ribera calculated, both fiscal measures, which will force to revise the retributive parameters of the cogeneration, will suppose a reduction of the invoice of the small consumers of 4% and a cut of the collection for Treasury higher than the 1.000 million euros.

The Government has chosen to distribute this contribution of public funds between both taxes: to reduce to zero the 7% would have assumed about 1,100 million euros in a year. By suspending only six months, the lost revenue will be just over 500 million euros. An amount similar to the one that will remain the exemption of the green cent, according to calculate the electrical ones, that they have come claiming it in the last weeks. However, the Treasury will compensate this loss of revenue with revenues from CO2 auctions, which will triple this year, up to 1,500 million, compared to 500 million in recent years.

As expected, the RDL includes the disappearance of any type of toll and charge for self-consumption activity (either individual or shared) and administrative simplification for the implementation of this type of facility.

But the bulk of the package focuses on measures to support the general consumer and the vulnerable. For the latter, the coverage is extended to the current beneficiaries of the social bonus (including now single-parent families and dependents of grade 2 and 3) and the consumption limit that gives right to it is raised by 15%. Another measure of consumer protection is the prohibition of gas and electricity marketers contracting the supply or offering door-to-door advertising. the sanctions are reinforced.

Other novelties are the creation of the thermal bond (a direct aid financed by the State); the liberalization of the recharging activity of the electric car, with the disappearance of the figure of the recharge manager and various measures to promote renewables.

High prices for the next quarters

Factors According to the royal decree law with which the Government wants to alleviate the electricity bill, there are two factors that have triggered the current escalation of prices: the rise in the prices of raw materials and the emission of CO2 .

Raw Materials. The ton of coal has gone from 53 euros in 2016 to 76 euros so far this year; the barrel of Brent has evolved from 44 to 72 dollars in that period and CO2 rights have skyrocketed from 5 euros in 2016 the ton to over 20 euros in 2018.

CO2 All this has impacted the wholesale market, which registered an average of 71.35 euros MWh in September, close to the maximum monthly history of January 2006 (73.14 euros MWh). This is automatically transferred to the small consumer's tariff with PVPC

Structural?. The Government recognizes in the RDL that there are signs that indicate that the situation is not conjunctural, but has structural elements: in addition to futures markets, which point to high prices in the coming quarters, the commitment to decarbonization that will replace production more polluting

.



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