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The fourth vice president and Minister of Ecological Transformation, Teresa Ribera, has been saying for months that the reform of the electricity tariff was going to lower the price of electricity. But it turned out to be a lie. Compared to May of last year, when activity was practically non-existent due to Covid, prices grew 44 percent.
Why did the minister slip in? The blame is on CO2, which more than doubled. The electricity market is marginalized due to the regulations of the European Union, which means that the most expensive energy determines the price of the pool for the rest. So gas, with 50 euros in taxes per ton of CO2, makes the others more expensive.
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During the previous legislature, the Nadal brothers also introduced mechanisms in the regulated market so that prices reflected demand, which accentuated the decreases, but also the increases.
As an alternative, consumers can opt for the liberalized rates, which are offered by electricity companies in packages with closed prices, but they tend to be more expensive than regulated rates, because they include insurance for price variations. So there is no way to escape the highs that will come in the next few months.
Ribera has created time slots for citizens to take advantage of off-peak moments, but not even with that they get a discount. They will tell me how to avoid turning on the air conditioning in the hottest periods of the day. But the bad news does not end here. The cost of CO2 will continue to rise. Analysts predict that it will double to 100 euros per ton, which will make the electricity bill even more expensive.
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Sánchez and Ribera are victims of the climate change boomerang they promote
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To make matters worse, the minister invented a Royal Decree, which she now intends to validate in Parliament as a Law, by which dirty energies, such as hydrocarbons, should pay for clean energies, such as renewables.
That means that fuels, which are at maximum due to OPEC production cuts, will rise even more, because the oil or gas companies will pass these rates on to users. The government tried on Tuesday to fix the mess, transferring part of the cost, around 1,000 million, to the electricity companies. A patch policy that only adds to the confusion .
The minister intends to reduce the impact through a populist measure, that hydroelectric and nuclear plants founded before 2005 stop receiving the so-called dividends fallen from the sky or from carbon, because they have already amortized their costs.
The decision, which hits Endesa and Iberdrola particularly hard, sparked a barrage of protests from the sector. The Nuclear Forum ensures that its facilities pay “confiscatory” taxes equivalent to half of the income received and, in addition, they must invest 3,000 million in the coming years to comply with environmental regulations. The solution ? They threaten to close them, although this is impossible to do without administrative permission.
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Europe delays the disbursement of funds to Spain because it lacks a de-escalation plan
