The Minister for Ecological Transition, Teresa Ribera, at the Ministry’s headquarters in Madrid. /
He affirms that the electric companies asked for the gas cap so that the State would pay for the measure that will detract from their “extraordinary” income
Relations between the Government and the electricity companies are going through complex moments after Spain has obtained the endorsement of the European Commission to limit the price of gas to 50 euros/Mwh for the next 12 months and, with this, cushion the rise in electricity . The Minister for the Ecological Transition, Teresa Ribera, asks the companies for “responsibility” with their clients and the entire country after much of the sector has lashed out at the “interventionism” of this measure which, according to Ribera, guarantees stable prices to a year seen in a context marked by Ukraine.
-Russia has cut gas to Poland and Bulgaria. Is there a real shortage threat?
–Basically, it is a warning message to the entire EU. We are working around the clock on supplier diversification to be able to replace the highest amount of supplies from Russia as quickly as possible, while at the same time maximizing efficiency with renewables. Spain has activated the storage program through the decree approved yesterday.
There are countries with a very high dependence on Russian gas. But fortunately for the Spanish this reality is very foreign. Our supply is guaranteed although we are not safe from price turbulence.
Algeria
“They have given constant signs that they are going to comply and they have not reduced an ounce of gas.”
-Now we look more at the US methane tankers, but Algeria continues to make threats, like the one this week about supplies to Morocco.
-Algeria has given constant signs that it is going to comply with its contracts and to such an extent it is so that it has not reduced even one gram of gas for the Mezgas. We do not have any element that allows us to generate any signal that allows us to generate the slightest shadow of doubt regarding the fulfillment of the commitments.
–In line with gas prices, the Spanish-Portuguese proposal to limit it to 30 euros/MWh has finally gone to 50 euros/MWh. They have not achieved their initial goal and it has been almost double what was planned. Why?
–With a low price, the margin of extraordinary profits on the part of the companies is cut. The Commission was afraid of having prices very far from those of the market, of gas. That is why it has been raised to 50 euros/Mwh. It is also important that the EU has understood that we should include winter, that is, that we would leave 12 months after the start of the debate on the application of this mechanism. It would not make sense to end this mechanism in June or in the middle of winter. But wait another year.
–In other words, we will have electricity at very high prices for a full year.
– We do not know how the situation in Ukraine may evolve. Turbulence or tension in prices and that they remain high cannot be ruled out. And that is why we consider the agreement that we have reached enormously beneficial, because we are protected in that format with respect to contagion in the price of electricity.
It would be a lack of responsibility not to intervene to reduce the impact of this situation, because we need to protect private consumers and industries from companies that say they should suck for not having covered themselves before with long-term contracts.
energy benefits
“It is not that they earn less, but less than what they could earn in a scenario like this”
– Have they managed to calm the fear that existed among other European partners, such as Germany?
-Our interconnection with Europe is minimal and that also generates a problem of competition. A German industrialist can reach an electricity purchase agreement with a solar developer in Marseille, but an Andalusian industrialist cannot do so with a Danish wind marketer. This creates tensions, because our main companies in the sector are more protected and explains why it is more difficult to have more competitive rates.
– Why parked the reform of the regulated rate, to make it more stable?
–We do not have a market in which we can link the PVPC to prices that are not distorted, as is the case now. In the coming months we have room to propose a reform that makes sense with references other than price.
–Who is going to pay in the end for this ‘Iberian exceptionality’?
– There were several options. The electrics loved the mechanism at first. They had no ‘intervention’ problem. None… if whoever paid the difference was in the Budgets. They also had no problem if it was charged and they would already fund it and pay for it when it went to consumers.
We believe that it is better to transfer it daily because there is room to finance that difference. Now, the companies do resent the system, as there is a very important reduction in the benefits of extraordinary income from those of marginal technologies.
Therefore, as the free market contracts are reviewed, their participation in the adjustment of this mechanism is incorporated, in such a way that everyone wins, including those whose price when their price is revised will not be as high as Until now it will no longer exist on the market.
–Results like the latest from Iberdrola reveal a significant drop in the Spanish market due to the current regulation.
–They had the opportunity to review the rates and bring them up to the wholesale market, with supervening prices. And they have not done so due to the reduction established by law. Therefore, it is not that he has not won, it is that he has earned less than he calculated that he could earn in a scenario like this of such high prices. Now the same thing will happen. They won’t lose. They will earn above their average costs.
It is normal that Mr. Ignacio Galán wants the maximum benefit among his shareholders. But it is also important to know at what time you are working, with which people and with which consumers and, therefore, a relative reduction in benefits to be able to accompany the society for which you work is important. If he doesn’t, we go to regular.
-The PP insists on further lowering the taxes on the bill. What will happen after July?
-We do not know how the next few months may evolve. We are open to being very attentive to have the response that is required at all times.