Agreement in the European Parliament to reform the electricity market “without capping income”

2023-07-06 19:36:52

The European Parliament has agreed to reform the electricity market without the proposal of the socialist rapporteur, Nicolás González Casares, who sought to cap regulated prices. The text, which is expected to be voted on on the 19th in the Industry and Energy Commission, does not include any mention of the “cap” (top) on income for infra-marginal producers, which has been one of González Casares’ workhorses. There is also no mention of the so-called solidarity contribution.

González Casares announced after noon on his Twitter account that an agreement had been reached with the European PP (Maria da Graça Carvalho), the liberals of Renew Europe (Morten Petersen) and the greens (Michael Bloss). The socialist speaker stressed that the agreement would include the prohibition of disconnection for the vulnerable, more rights for consumers (it is understood that access to PPAs, for example) and better mechanisms for activating emergency measures.

Regarding Contracts for Differences, CFDs, price support schemes for new investments, especially in electricity generation, must be approved by the Commission. The obligation is introduced, of course, that direct price support schemes for new investments in electricity generation (wind, solar, geothermal, hydraulic without reservoir and nuclear) use CFD or equivalent schemes, provided they are approved by the Commission . “The obligatory nature of these schemes is maintained as the only direct support schemes for prices”, reported González Casares.

The above-mentioned matters are not mentioned in the tweet. The answer was given on her Twitter account by the popular speaker, Maria da Graça Carvalho: “We have an agreement. There will be no income cap.

In his 186 amendments, González Casares had proposed establishing a cap on electricity revenues forever when prices exceed 180 euros per megawatt hour on the wholesale market. In Spain, the electric companies return what they earn above 67 euros per MWh.

In addition, it proposes greater market intervention when wholesale prices are twice the average of the previous five years and remain at those levels for three months. The European Commission established the crisis situation when an increase of 2.5 times occurs and in a period of six months.