The secretary general of the PP, Teodoro García Egea, assures that the regulated rate of electricity, the so-called Voluntary Price to the Small Consumer (PVPC), “is 12% more expensive than the rest of the market rates”, when all the experts , the National Commission of Markets and Competition (CNMC) and the Government affirm that this rate is, in the long run, the cheapest for the consumer.
García Egea makes this statement in a interview published this Monday in Expansión in which he attacks the proposal that a public energy company take over the hydroelectric dams when they expire. “We ask Sánchez to abandon those delusional ideas of his government partners to return to nationalized companies.”
“I would like to know the public company that Mrs. Ribera is supposed to create with Mr. Echenique, because they are the great ideologues of this matter, what is she supposed to focus on, to act, if it is going to be a company distribution, generation, marketing … Is this public company going to offer citizens what the regulated rate currently offers, which is 12% more expensive than the rest of the market rates? Is this going to be the efficiency of this public company when it comes to offering the price of electricity to citizens? ”.
Successive CNMC studies affirm that in the long term PVPC is cheaper than the so-called free market offers promoted by electricity companies. According to the CNMC, in 2019 (last year analyzed) it was 17% cheaper than the average of these offers.
This semi-regulated tariff, which the electricity companies have asked to change to “protect” the consumer, is more exposed to daily fluctuations in the wholesale market, which last week set five consecutive historical records, since the cost of energy is directly indexed to that of the named pool. Last week, Vice President Teresa Ribera was willing to modify the PVPC to make it more stable in exchange for a “small premium.”
According to the CNMC rate comparator, a supply with 3.3 contracted kilowatts and an annual consumption of 3,000 kWh would have paid an annual bill of 636 euros in the last year. This amount (which includes months in 2020 in which the wholesale market price was unusually low due to the pandemic) is below all the free market offers, except for one, the “2.OTD Stable price” offer from the marketer. Gana Energía, which offers its new customers an annual price of 601.42 euros for the first year and 728.6 euros for the second year.
In the interview published this Monday, García Egea affirms that “Spain already had a public energy company, it was called Endesa and it was privatized by the Socialist Party, the same party that now proposes us to return to a public company model.”
The Socialists sold the last package of shares in Endesa (slightly less than 3%) in 2007 when they went to the Enel and Acciona takeover bid, but the weight of the State at that time was already residual. The bulk of the privatization of the electricity company was carried out by the Government of José María Aznar.
The secretary general of the popular gives some details of the proposal outlined last week in a tweet by the leader of the PP, Pablo Casado, so that the consumer “pays only for the cost of the energy consumed.” According to García Egea, “in these At times, the CO2 rights are acting as a hidden tax by the Government. In 2021 2.300 million will be collected for this concept and these revenues could be perfectly applied, in fact the European Commission recommends it, to lower the electricity bill We have mechanisms to do it. ”
Casado’s right-hand man affirms that “blaming the marginalist markets for the rise in electricity is like blaming the mayor of the town because we have a heat wave.” It demands “that non-electrical costs be taken out of the electricity bill” and asks “for a reflection on what costs should be paid by the consumer. We believe that everything related to energy efficiency aid, which in the past was also charged to the tariff, or the possible tariff deficit, should be extracted from electricity costs ”. García Egea does not explain how those items would be paid for.