The Iberian mechanism that sets a ceiling on the price of natural gas in the production of electricity generated, in the first 23 days of its validity, savings of 55 million euros, reducing prices by around 18%, according to the accounts released by Duarte Cordeiro. , Minister of the Environment, who was heard in Parliament on energy prices, at the request of the PSD, which maintained its distrust of the benefits of the mechanism.
Duarte Cordeiro stressed several times at the hearing that the mechanism benefits Portugal. “Portugal is more protected by the mechanism”, he pointed out, admitting that the relevance for Spain is even greater as it is more unprotected.
“If it were not favorable to Portugal, we would not have approved it and the European Commission would not have authorized it,” he stressed.
In the first fifteen days, the estimated benefit for consumers, as the President of the Government already mentioned, was recorded at 27 million euros in Portugal. However, in Spain the benefit reached 250 million. Duarte Cordeiro explains: “Five times the market, twice the exposure.”
When asked, as the ERSE had already asked, who benefits from the mechanism and who pays for it, Duarte Cordeiro gave the same figure: the current exposure is 18% of the volume of electricity production (Spain has an exposure of 40%). . estimates to reach 62% in May 2023, with an average of 44% of energy subject to the mechanism, which entered into force on June 14 and expires on May 31, 2024.
“Portugal benefits from this mechanism, the Portuguese and the companies are paying below the price with the mechanism. Portugal benefits, it is more protected”, reinforced Duarte Cordeiro who, confronted by the PSD about the formulation of the accounts of the cost to be paid to the plants and the benefit of the mechanism, denied the idea that the Portuguese Government is making estimates according to what says Spain on twitter.
The cost, the minister stressed, is calculated daily. And he cited data released yesterday by the OMIE that between June 15 and July 10 the market price of the Mibel was 145 euros, adding 96 euros to the cost of the mechanism, totaling 241 euros.
Average price of electricity in the MIBEL on Thursday: €171.73/MWh + €148.93/MWh adjustment (provisional) = €320.66/MWh.
This is compared to €361.38/MWh, if there were no mechanism, which translates into a reduction of €40.72/MWh, a saving of more than 11%.#xxiiigovernment pic.twitter.com/HrJAUyka9c— Environment and Climate Action PT (@ambiente_pt) July 13, 2022
????These are the estimated prices for tomorrow in the European electricity markets
????????? €162.2
????????? €367.4
????????? €446.1
????????? €386.7 pic.twitter.com/t3Gyf5rfr4— Ecological Transition and Demographic Challenge (@mitecogob) July 13, 2022
Every day the two ministries publish the estimates. Duarte Cordeiro, in response to the PSD, also admitted that he has all the advantage of having transparency in disclosing the benefits/costs of the mechanism, even because they consider that there are benefits from the cap.
ERSE guarantees that the Iberian energy mechanism does not generate tariff debt nor does it go to access tariffs. June 15 spike under investigation
As it is a temporary mechanism, Duarte Cordeiro guaranteed that there is concern about advancing with structural measures and listed the streamlining of self-supply licenses -which will allow increasing solar capacity-, the auction of offshore wind turbines -“we want to seek to reach 10 GW-, and the expansion of green energy production and start exporting green energy.
Source: Observadora
