A fair and minimum social tariff electricity reform

A fair and minimum social tariff electricity reform

2023-05-31 01:51:02

Ecologists in Action has demanded from the Government a reform of the electricity market that does not entail “a scam for many families” and that guarantees, among other measures, a fair social rate and a minimum supply of energy.

The NGO has presented this Tuesday a report in which it proposes a new electricity system that comprehensively addresses the social, energy and climate crises with short, medium and long-term measures that put a stop to the “fraud of the marginalist market of fixing prices” revealed by the rise in the price of gas during 2022 and the rise in the price of electricity, which have generated “enormous benefits from heaven” for large companies and that has “shot” the price for consumers.

Thus, remember that in January 2021, with Filomena, the price of electricity reached €70.28/MWh; but from April 2021 the prices began to rise, reaching an average final price of national demand of €300/MWh in March 2022 and in August of that same year, €250/MWh. However, he considers that the “Iberian exception” has been “just a patch” that has artificially reduced the cost of electricity.

The source-differentiated pricing system

However, Ecologistas insists that the electricity market reform proposal cannot exclusively address the pricing system differentiated by sources, but that a broader reform of the entire electricity system is necessary.

In his proposal for a new electrical system, he proposes measures such as reducing the price of electricity, promoting a social tariff that guarantees access to a fair social tariff and a minimum supply of energy, while progress is made in fair pricing mechanisms.

It also calls for an audit of the real costs of electricity and the debt acquired over the years and to achieve a more efficient electricity supply that is appropriate to the limits of the planet, where demand management plays a central role.

Facilitate citizen initiatives compared to the centralized model

The NGO report considers it necessary to bring production closer to the places of consumption and facilitate citizen initiatives against the centralized model of the large electrical industries through a high penetration of self-consumption.

To achieve this, it proposes to immediately rescue the most vulnerable populations, for which 51,000 million euros would have to be allocated, 5,000 of those million for direct subsidies and the remaining 46,000 for a low-interest line of credit.

In short, it requires a comprehensive reform of the oligopolistic electrical system with more than 20 years of existence, “unfair and speculative, based on production with fossil technologies, to move to a 100 percent renewable, democratic model and where self-consumption, energy communities and the public sector have a central role”.

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