He reminds Galán that his warning of interventionist terrorism on the Iberian mechanism is now appreciated by other countries to apply it
Barely 15 days after its launch, the Minister for Ecological Transition, Teresa Ribera, has defended the advantages of the Iberian exceptionalism by stating that in these two weeks the application of the cap on gas has managed to reduce the ‘benefits’ by 250 million euros fell from the sky’ from the electricity companies.
Ribera exposed these calculations in a session before Congress in which he sued some of the companies for despising the system at the time; and against the PP, which influenced the price increases in the first days and the side effects of the cap, such as exports to France or the increase of the cycles.
After defending that it is an “effective” measure to protect consumers, Ribera has indicated that the exception agreed with Portugal and approved by Brussels has “proved effective” in lowering market prices and reducing profits that companies make by taking advantage of high gas prices, even though production costs in many of its factories are much lower than those prices. In addition, he took the opportunity to voice veiled criticism of Iberdrola’s president, Ignacio Galán, who objected by describing it as “interventionist terrorism.” “In the presence of those who described it” in this way, Ribera recalled, “it is now seen by other countries” as a model to start it up.
The head of Ecological Transition points out that the measure has reduced the price of electricity for regulated tariff customers connected to the wholesale market by 14% compared to the records that the ‘pool’ (as the wholesale electricity market is called) would have had if it had mechanism was not applied. The minister believes that the ceiling on gas, together with the reduction in VAT and levies, makes the bill 30% cheaper than if these initiatives had not been implemented.
He also underlined that the estimate discussed by the ministry puts the price of electricity for Spain in the fourth quarter of this year at 149 euros per megawatt hour (MWh), compared to 343 euros/MWh in Germany and 743 euros/MWh in France. , in the latter case because of “the dire situation of its nuclear park,” Ribera claimed.
Facing the tension that could arise in the coming months and which could potentially go even further, Ribera insists that Spain must be “prepared” by committing to promoting the diversification of gas suppliers, promoting renewable energies and biogas , intensifying the savings and efficiency policy and also electrification. Measure them all that he has considered that “they could be decisive for the coming fall or winter.”
On the other hand, it announced that in the second half of the year the proposal will be drawn up to change the current regulated tariff (PVPC), which covers ten million users. A formula is enabled that provides price stability with periodic assessments as across the EU. According to the minister, it will come into effect on January 1, 2023.
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.
