Updated on Friday, 1 October 2021 – 15:23
The Ministry of Ecological Transition asks the opinion of companies and consumer associations. Its objective is to de-index the wholesale market rate in a staggered manner.
The vice president of Ecological Transition, Teresa Ribera..
The Ministry of Ecological Transition launches the reform of the regulated electricity tariff that has been contracted for more than 10 million households the day the cost per megawatt hour exceeds 200 euros in the wholesale market. The department that directs Teresa Ribera has asked the main agents of the sector, from companies to consumers, to convey their opinions on how the reform should be carried out in a within 21 days.
The Government’s objective is to reduce volatility in rates, which since 2016 have been fully indexed to the market price. After the sharp rise in energy markets since last August, consumers who paid to the Voluntary Price for the Small Consumer (PVPC) they have been the ones that have really suffered a notable impact on your bill.
The measure, in addition, will reduce the political cost for the Government, since the probable partial or total disindexing of the wholesale market will tend to alleviate the pressure on the daily record price flood of electricity. The Executive’s idea is that the decoupling be done in a staggered manner and the cost is linked to baskets with more stable futures prices and to the fixed-price auctions that the electricity companies will have to carry out to promote competition, as EL MUNDO already advanced.
The Government argues that the evolution of electricity observed in the last three months has motivated the opening a period of reflection about its current configuration of the PVPC, which may lead to a new regulatory development to modify its structure. “Although it is true that variations in wholesale prices in the electricity market, when sustained long enough, end up being transferred to all electricity consumers, from different areas of society (companies in the sector, consumer associations). It has been pointed out that it is paradoxical that consumers with lower consumption are those who are exposed to greater volatility in the price of their electricity consumption, although this greater volatility does not translate into higher prices in the long term “, highlights the text that collects the query.
In the same way, Transicin Ecolgica adds that the decarbonization path initiated by the country will lead to an increase in volatility in wholesale markets, since “foreseeably, there will be a greater difference between the hours in which clean technologies are able to completely displace to the most polluting, and those hours in which it is still necessary to provide technologies with higher variable costs, such as the combined gas cycle “.
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