The Commission finalizes the final approval the vice president hopes to get “for the Andalusians” to be held on June 19
The third vice president and minister of Ecological Transition, Teresa Ribera, points out that the European Commission will give final ‘good’ to Spain and Portugal’s plan to cut gas prices for electricity generation ‘soon’. That is, before the end of next week.
Responding to questions from journalists during the celebration of the XXXII Enerclub Energy Awards, Ribera expressed hopes that Brussels’ approval will arrive “before the Andalusian elections”, which will take place on June 19. “I think it’s a good date,” he said.
The European Commission itself stated this Wednesday that “we are working tirelessly” to provide an answer “as quickly as possible”. Faced with criticism of the delay in the decision, spokesman Eric Mamer defended that there was no detailed deadline for it and that the usual procedure is being followed.
At this point, Ribera insisted that “due to the details and complexity” of the agreement, the Commission’s decision is “going slightly slower than could have been foreseen”. But he insists the green light is imminent.
The proposal that Spain and Portugal have agreed with the Community management provides for the authorization to fix, for a period of 12 months, the average price of gas at approximately EUR 50/MWh. In concrete terms, it would start at 40 euros and later increase to 48.8 euros, a figure that is considerably lower than the current reference price in the market of more than 100 euros/MWh -in the Dutch TTF market, a reference in Europe- , with a price starting at 40 euros/MWh, for six months.
“We have been saying for over a year that the marginal market design, which has been very effective so far because it has made it possible to distinguish between technologies that produce electricity more efficiently at a lower cost, is today being disrupted by changes in the gas price. And that is ultimately paid for by the consumer”, the minister insisted, Ribera recalled that, in the case of Spain, this impact is felt “much more directly”.
Regarding the possible extension of the “anti-crisis plan” to deal with the consequences of the war in Ukraine, including the bonus of 20 cents per liter of fuel, the minister defended the mechanism used “which applies to everyone at gas stations, regardless of whether we consider in the medium term whether this measure is still necessary or whether there is the possibility to focus the effort on families with more support needs.
The government must decide before the end of June which measures and in what form the current decree will be maintained as of June 30. Some measures will have to go back through Congress at a time when relations with the opposition, and even some government partners, are at their peak.
While he didn’t close the door on changes to the fuel bonus, he did say that “it’s important that at a time like this, at the gates of the holiday, those who need it aren’t in trouble.”
Faced with the cut in the petrol tax demanded by the main opposition parties such as the PP, the minister recalled the cut in the energy tax since last summer, with the intention of introducing measures such as the reduction of VAT on electricity by 21% to 10%. within the extension of the anti-crisis plan. “It is striking that the PP, which did not vote in favor of these measures, is now making additional comments about this tax,” Ribera reiterated. “If you care so much about electricity taxes, you’ve had opportunities to publicly show your support,” he said.
The third vice president explained that the guidance of sectors and households affected by the energy crisis cannot be based on fiscal measures alone. “These are emergency measures that we must give, but we must accelerate the transition of the energy market and we cannot empty the public treasury if we do not take parallel measures that allow us to change what is causing these tensions,” he said.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
