The government is tightening control over lost benefits of power companies

The government intends to strengthen control over the so-called electricity companies. As Prime Minister Pedro Sanchez said on Monday, when the main lines of the war response plan were outlined, the royal decree law approved by the Council of Ministers on Tuesday will extend the mechanism reduction until June 30. Excess profits in the electricity market due to high prices for natural gas in international markets, “with some modifications to enhance its efficiency and adapt to European guidelines.”

These changes, as explained at a press conference after the Council of Ministers by the Third Vice President and Minister for Environmental Transition, Theresa Ribera, include an extension of this rule to reduce extraordinary benefits, which could lead to gas price for electricity contracts that are now renewed or concluded. According to government sources, the maximum price that will be taken as a reference will be 67 euros per megawatt hour (MWh). This price, which was already set last fall, is based on the Iberian market price (Mibgas) since its inception: 20 euros / MWh.

The reduction has been in force since September, but so far it has been very reduced: to implement the decree it started, the government had to rectify it a month later, omitting bilateral contracts, which significantly reduced its collection. , Was initially estimated at 2600 million euros. The news is that this limit has already been set, which “only happens when contract renewals or new contracts are made,” Ribera argued.

The Vice-President recalled that the European Commission had stated in its latest Communication that this type of mechanism for suspending undue profits from electricity companies could not be used retroactively. “We believe that in case of renewal of contracts or signing of new contracts, it is important to include limits. He also noted that from the information provided by the National Markets and Competition Commission, it can be concluded that in recent months contracts have been renewed not at daily prices but at futures, which have also been marked at historically high levels in recent months. .

This is one of the measures to reduce the electricity tax that the government approved this Tuesday, while waiting for the price limit to be set for gas-fired bids that Spain must agree with Portugal after the EU-granted Iberian exception. In Spain; The limit, which Ribera demanded, was not met “lightly” after Social Rights Minister and United We Can leader Ione Bellara publicly bet on a € 30-megawatt hour on Monday.

In anticipation of this Iberian mechanism, the strengthening of so-called sudden profit control is added to other measures already announced, such as the reduction of invoice taxes, the strengthening of the social bonus, and the advancement of reduction. Reimbursement for technologies including the regime known as RECORE (Renewable Energy, Special Mode and Cogeneration): € 1,800 million, allowing for a 55% reduction in taxes (part set by the government) between this time and the end of the year. At the same time, the reduction for the average consumer will be 6 euros per month, according to ministry sources. In addition, these facilities will be able to enter into bilateral agreements with marketers or large customers.

In the case of the social bonus, the main news is that the qualifying limits for these discounts are increasing: the so-called. IPREM thresholds increase 0.3-fold for adults and 0.5-fold for children. And there is a “symbolic change” but “important: stop talking about families and talk about cohabitation with people” at home to get these discounts. In addition, the 60% and 70% discounts for socially vulnerable and severely vulnerable customers will last until June 30. And to enforce the Supreme Court ruling last January, its funding mechanism extends to the entire electricity business network (including carriers and distributors).

Another innovation to accelerate the deployment of clean energy and in the context of the accumulation of applications is the introduction of a new “super accelerated procedure” for the processing of renewable energy installations, with a minimum wind capacity of up to 75 MW and 150 MW for onshore power plants. Without special protection of the environment and do not integrate cable evacuation systems for distances longer than 15 km. It is a “more flexible” procedure, but with “all guarantees”, which “worked with the European Commission”. At least 7 GW of access capacity is also reserved for self-consumption

According to the plan approved this Tuesday, the electricity-intensive industry will see electricity bills reduced by 80% by 2022, as well as more compensation for the cost of CO2 transmitted to electricity. In addition, strategic natural gas reserves will move from 20-day consumption to 27.5 days, with more flexibility.

They will also last for two years and will be automatically handed over to the Minimum Living Income (IMV) beneficiaries to increase the number of beneficiaries from 600,000 households to 1.9 million. Finally, there is a growing number of companies that are required to fund these discounts to comply with the Supreme Court ruling last January.