Electricity. “There will be no need” for more measures to mitigate price rises, says minister

The Minister of Environment and Climate Action, João Pedro Matos Fernandes, said this Friday that “there will be no need” to talk about additional measures to mitigate the rise in electricity prices “in the coming months”.

Speaking to Lusa, the government official said that the tariff update announcement made by ERSE – Regulatory Authority for Energy Services “confirmed what was the expectation for the tariff in the domestic regulated market. Regarding the reduction in the tariff for access to networks, ERSE exceeded our expectations, even managing to reduce the tariff deficit”, he indicated, concluding that “about measures to support electricity there will be no need to talk in the coming months”.

The price of electricity for consumers in the regulated market is expected to rise by 0.2% next year compared to the average for the current year, according to ERSE’s proposal.

But, considering the two interim price increases that took place this year, the proposed tariffs for 2022 represent a 3.4% decrease in January 2022 compared to December 2021.

At the same time, network access tariffs, included in tariffs for sales to end customers, will drop between 52% and 94% next year, according to ERSE’s proposal.

“What we have a deep conviction, and which we have now seen confirmed by ERSE, is that the policy measures we have taken and have been taking for years are really going in the right direction. This declared commitment to renewables is our best insurance policy today. price, in relation to what may be the increase in the price of electricity, when there are non-renewable sources such as natural gas,” said Matos Fernandes.

The minister also guaranteed that “the unregulated market is always in the habit of going after the regulated market or even having better rates” and that “that’s why people left the regulated market for the unregulated one”.

“Our great concern here was essentially the industry, which has to maintain its competitiveness”, he underlined, pointing out “the extra cushions that were created by decision of the Government, using carried over balances, namely from the environmental fund” which were intended “only for medium and high voltage, ie the voltages used by the industry”.

“We achieved a reduction in network access tariffs that represent 60% of the tariff that is paid by each consumer, whether private or industrial, and reach reduction values ​​of 94% for medium and high voltage,” he highlighted, noting that this “It is a very positive result that will dampen or even reverse what is the increase in the other portion, the cost of energy”.

The minister also said that “it is up to the industrialists to make contracts as long as possible”, saying he is confident that this “high [nos preços] will fade in the first quarter of next year.”

Matos Fernandes also refused that the Government is creating more tariff deficit, pointing to data released by ERSE, of reduction, at the end of 2022, to 1.7 billion euros.

On September 21, João Matos Fernandes, at a press conference at his ministry, in Lisbon, announced a set of measures to mitigate the rise in the price of electricity among consumers, such as the elimination of the extra cost of Production in a Special Renewable Regime (PRE ), which will become a surplus, amounting to 250 million euros, and the elimination of the extra cost with the Power Purchase Agreement (CAE) of the Pego coal-fired power plant, generating an annual saving of 100 million euros.

Additionally, the revocation of the interruptibility mechanism generates an annual saving of 100 million euros and the allocation of revenues from the sale of carbon dioxide (CO2) licenses, in an estimated value of 270 million, results in an additional revenue of 120 million, compared to the revenue initially budgeted in the Environmental Fund, of 150 million euros.

Finally, there is also the ‘cushion’ for the consignment of revenues arising from the extraordinary contribution on the energy sector, in the estimated amount of 110 million euros, bringing the total amount to 680 million, which guarantees a reduction in network access tariffs. 13%.

Source: Renascença – Noticias by rr.sapo.pt.

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