Jun 26, 2012

The Power Auction Today Will Determine the Electricity Tariff Review in July


MADRID – The nineteenth auction of electricity between traders of last resort (Cesur) will be held today and serves to hold the corresponding term in the energy of light fare, with the next quarterly review will take place on July 1.

The result of these auctions has a weight close to 50% on Last Resort Rate, while the other 50% are electric tolls, which meet the cost regulated power system.

The previous auction, held in March, closed with declines of 7%, while Last Resort Rate finally rose 7% to collect tolls increased nearly 23% with the government complied with the judgments of the Supreme Court and ensuring balance between costs and revenues. The rise was accompanied by a reduction of regulated costs of 1.700 million.

The auction will coincide with the announcement of the energy reform in which government works, which aims to tackle the tariff deficit and avoid that in 2012 the gap exceeds 1.500 million. Secretary of State for Energy, Fernando Marti, has warned that the deficit in 2012 may be 4.000 million, if no action is taken.

In tomorrow’s auction of five providing electric service regulated tariff, which are Endesa, Iberdrola, Fenosa Natural Gas, HC and E.ON will acquire 5,036 megawatts (MW) base load and peak load 575 MW for the third quarter.

Apart from the decisions of the Government related to cost reduction of the electrical system, experts warn that it will be necessary to raise the income of the system and, to that end, not only will raise rates, but also expected to taxation .

Leave a comment