The Municipal People Totana, through a motion to raise the regular session of the month of January, urge the National Government to formulate another method of regulation of electricity rates and that does not harm consumers more serious and SMEs, taking out the non-receipt thereof (renewable raw, coal subsidies and tariff deficit) costs.
In addition, the City will request that as a new procedure most appropriate regulation is established, shall be prohibited, in cases of necessity, the power failure by operators for nonpayment in homes, establishing a moratorium or a continuance without entailing additional cost.
Also asked to clearly and immediately, by the bodies which it considers appropriate, to conduct an audit of the existing debt of the tariff deficit.
In this sense, also relies on his motion to Spanish government for its agility and readiness when the annular regime auction that raised electricity pricing.
Current Situation
The popular mayor, Felix Cayuela Paul recalled that the National Commission on Financial Markets and Competition (CNMC) decided late last year not validate 2013 power auction on presumably with the concurrence of atypical circumstances and in a context of high prices on the daily market during the previous weeks.
The Commission noted the occurrence of this on the last power auction Cesur annulled by the Spanish Government, which would have meant a rise in electricity rates of over 10% for the first quarter of this year.
This, according to the report of the CNMC, prevented the auction will develop in an environment of sufficient competitive pressure, so that the circumstances in which the power auction and the behavior of the officers involved in the same developed were investigated.
In this situation, the Ministry of Industry, Energy and Tourism invalidated the auction and gave the green light to a rise of 2.3% in electric bill this quarter of 2014, while the situation is analyzed and looking for a new system power auction.
The auction was held, called Cesur, showed an increase of energy costs of 25.6%, which would have meant an increase in the final rate of about 11%.
The Electricity Tariff of Last Resort or TUR, as it is more popularly called since this January voluntary price to small consumers, and consists of two elements, tolls and energy costs, which account for about half of each bill, and taxes are added.
Tolls are set by the government through a ministerial order.
The other part, the cost of energy, it is decided in these quarterly auctions Cesur.
Thus, the ministerial intervention was a real rise in the light of 2.3% in January approved by the Government and Industry came after annulled the previous system to avoid rate hikes of 11%, affecting 16.5 millions of small consumers.
For parties, the average increase of 2.3% for households is divided into a 0.9% increase in tolls and 1.4% of energy end of the bill.
The first increase is the result of covering the consumer under the new tariff deficit of 3,600 million euros this year, emerged after the Ministry of Finance withdrew the committed budget contribution in the last electricity reform.
Furthermore, the Government adopted the proposed increase in the least harmful energy part among the suggestions that had moved the National Commission on Financial Markets and the Competition the day before.
That is, the cabinet chose the 1.4% increase versus the option of 2.9% and justified this decision to reduce the impact on the competitiveness of the economy of having the third most expensive electricity in Europe.
This is a transitional mechanism that moves the consumer approved paper to cover the risk for power trading that may arise from the difference between the price stipulated for sale-48, 5 euros per megavatio/hora- and then record the wholesale electricity market.
These risks were covered so far by the traders (investment banks attending auctions).
Each euro / MWh deviation will have a future cost of 12 million euros.
The new mechanism will move the deviation on receipt of the next quarter, which implies a distortion of prices relative to the market itself stipulating, the system has been heavily criticized by electricity generated because apparently tariff deficit in the liberalized part of the receipt, after two years of steep cuts to contain this mismatch in the regulated part.
This procedure satisfies neither consumers and SMEs or utilities, so a tool and rectify the pricing scheme without involving the first decline after the sector was liberalized and is necessary in recent years, especially during the Socialist Government, the price of electricity will increase.
