Updated on Tuesday, 21 September 2021 – 17:47
Employers Aelec argues that its plants do not benefit from high market prices as they have a large part of their supply sold at a lower fixed price.
The president of Aelec, Marina Serrano, Mauricio Skrycky
The large electricity companies in the country raise their tone against the Government and the vice president of Ecological Transition, Teresa Ribera, for the cut in their income approved last week by the Council of Ministers. After urgently analyzing some of the measures that have caught the sector by surprise, the employers’ association Aelec issued a statement on Tuesday in which it calls “absurd” the scenario in which many of its centrals will remain after the Executive has decided reduce the income of its hydroelectric and nuclear power plants. According to their numbers, the adjustment leads to losses at “numerous generation facilities.”
Their argument is that 100% of the generation of its nuclear power plants and renewable facilities is already sold forwards at a price that is well below that set by the wholesale market these weeks. In other words, these facilities, depending on their version, would not be benefiting from the current episode of record prices. “If the reduction were applied, the paradox would arise that this would be even higher than the price they are receiving from their clients, reaching the absurdity of having negative net income”, points out Aelec.
The electricity companies also claim that the increase in income that their generation companies are obtaining due to the strong increase in the wholesale market is neutral, since they then have to buy that energy with their traders to supply their customers. It is precisely on this transfer of energy on which the Government focuses in its cut, since in its explanatory note of the royal decree law it leaves out of the hatchet the term supply contracts with fixed prices except for the so-called “intergroup”.
“The application of this measure approved by the Government last Wednesday through Royal Decree-Law 17/2021, is not justified since it is different from the reality of what happens in the electricity market,” he concludes Aelec. The Government estimates that it will raise 2,600 million euros with the entry into force of this measure between the months of September and next March.
The president of the employer’s association, Marina Serrano, has denounced in an interview in Cope that no country has intervened in the electricity market as the Spanish Government has done in a situation whose origin is abroad: on the one hand, in the increase in the price international gas and on the other in the increase in the cost of CO2 emission rights.
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