Wednesday, August 17 2022 Sign In   |    Register

News Quick Search



Front Page
Power News
Today's News
Yesterday's News
Week of Aug 15
Week of Aug 08
Week of Aug 01
Week of Jul 25
Week of Jul 18
By Topic
By News Partner
Gas News
News Customization


Pro Plus(+)

Add on products to your professional subscription.
  • Energy Archive News

    Home > News > Power News > News Article

    Share by Email E-mail Printer Friendly Print

    Government delays fuel surcharge to lower electricity prices and COâ?? cuts to electricity companies

    June 24, 2022 - CE Noticias Financieras


      Last minute halt in the approval of two key regulations in the energy sector. The Executive of Pedro Sánchez has opted this Friday to postpone the approval of the National Fund for the Sustainability of the Electricity System (FNSEE) and the cut in income to non-emitting and older power plants for the cost of carbon dioxide (CO?), which was called to reduce the profits of energy companies. Both texts were to be submitted to Congress for consideration next Tuesday.

      The reason for this delay, as explained to this newspaper by the president of the Commission of Ecological Transition and Demographic Challenge, Juan López de Uralde, has to do with the fact that both measures are in contradiction with some measures that the Government plans to approve in the extraordinary Council of Ministers this Saturday. The deputy of Unidas Podemos denies, therefore, that the postponement -advanced by El Confidencial- is due to lack of parliamentary support.

      The Fund was designed to group the economic contributions of all those who sell energy in the Spanish market, electricity, gas and oil, and thus contribute to the financing of key energy costs for the whole system. And it left two large groups of victims: the oil and gas companies -the initial recipients of the surcharge-, and the most intensive consumers of both fossil fuels -to whom the increase will end up being passed on-. When it was launched, the Executive's promise was that it would reduce the electricity bill by 13%.

      Criticism from the energy sector

      Both the FNSEE and the reduction in the profits of the electricity companies due to the CO? had raised an important stir in the affected sectors: in the fossil companies, the first one; and in the electricity companies, the second one. The sectoral employers' association Sedigas has been one of the most critical voices with the Fund, a measure which, they say, would be especially hard on consumers "in cold and inland Spain and in more depopulated areas [which consume more fossil fuels and less electricity]" and on industry, which "will face a severe reduction in its international competitiveness due to the impact of this measure on its energy costs". Despite the fact that one of the Fund's priority objectives is to increase the electrification of the economy, making electricity cheaper than gas and fuels, the employers' association considered "at risk" the "contribution of the gas sector to the achievement of the decarbonization objectives".


    Other Articles - International


       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.