The Sustainability Fund project, which the government is promoting to cut electricity bills at the expense of oil companies, will come to light after the summer
The large industrial companies have made their voices heard in light of an imminent final processing of the National Fund for the Sustainability of the Electricity System (FNSSE), a measure by which the cabinet wants to reduce electricity bills in exchange for an increase in payments to oil affiliates should do. That was the idea of this rule that some corporate corporations are opposing because “it could be a serious blow to an already heavily penalized gas-intensive industry and struggling to keep its business and employment afloat in the worst possible context.” said GasIndustrial.
This organization believes that the new fund “will cause cross-subsidisation of costs between the different end consumers”. “Contributions to the gas sector will increase each year to 1,200 million euros, which will total more than 3,500 million euros over five years, which will severely penalize gas-intensive industrial consumers,” said GasIndustrial.
The Spanish Gas Association (Sedigas) has also highlighted “the negative consequences” and reiterated its assessment of disagreeing with the Sustainability Fund’s proposal. Likewise, it regrets that its possible approval is “accelerated in an extraordinarily complex energy situation and with still uncertain implications.” The initiative is now mainly “inexplicable and inconvenient”, according to Sedigás. The organization is calling on political groups participating in the Ecological Transition and Demographic Challenge Commission to “reconsider the appropriateness” of its parliamentary process.
The Fund’s final approval, if it happens, would come in the worst-case scenario with record fuel costs. The measure aims to remove the costs related to premiums for historical renewables, cogeneration and waste (Recore) from the electricity bill and to gradually transfer them over a period of five years to all energy sectors. In short, to the companies that pollute the most, such as the oil companies.
At the end of 2020, the College approved this fund with which it aims to reduce the electricity bill by 13% over the next five years after removing premiums for renewable energy from the fixed costs of the bill. This financing, which amounts to 7,000 million euros, which corresponds to the investments made in the first half of the century, is now fed by contributions from energy marketers. The Ministry of Ecological Transition estimated at the time that if the fixed costs of electricity bills for household consumers were not met, they could increase by about 10%, which amounts to an average increase in the bill of about 6%. 5%. single year.
At the time, and on several occasions on a recurring basis, companies like Repsol (one of the most affected) were against it. The CEO of the company, Josu Jon Imaz, believes that this tool is intended to “pay the funds, in some cases speculative” and “electric parties”. Imaz has indicated that “in life it is important to move forward with transparency” and has made it clear that in his view this fund is not intended to finance renewable energy, but rather “to pay investment funds, in many speculative cases” , which in the past invested in Spain in renewable energy sources that were not yet competitive, as well as “the dividends of the electricity companies and their mistakes of the past”.
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.
