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Electricity Companies Open A Legal War Against Spanish Government 2021

BySam Brad

Sep 15, 2021

The main electricity companies in the country have already reacted and put in the hands of their legal teams the legal battle against the package of measures that the Government has approved to lower the price of the electricity bill and that will come into effect on Thursday, as and as several sources have been able to confirm to elEconomista . Editorial | Interventionism on electricity that damages the free market.

For the moment, the only way to appeal the Decree Law would be before the Constitutional Court , but it would have to be done by 50 senators, 50 deputies, the Ombudsman, the executive collegiate bodies of the autonomous communities or, where appropriate, the Assemblies from the same. To appeal it in another way, one would have to wait for the approval of subsequent regulations. Sources in the energy sector consider that the proposals do not tackle the problem , calling them “stark lies” and assure that if the price of gas does not fall, the price of electricity will continue to rise.

However, the electricity companies are not far behind and they have not been the only ones who have spoken once the measures to be applied are known, both to value the “courageous” measures and to qualify the ideas of the Executive as “scam” of Sánchez.

The leading opposition party has also reacted. Javier Maroto, spokesman for the popular in the Senate, has described as “scam” the proposals to lower the electricity bill made yesterday by the President of the Government, Pedro Sánchez, whom he accuses of “killing flies with cannon shots” after “lying down in the sun while the price of light was multiplied by three “.

The PP spokesman in the Senate, who will be in charge of asking the chief executive on behalf of the popular group, believes that there is no guarantee that this rate will not become a problem in the future , in addition to criticizing that there is no assurance that the “attack on the electricity companies” will not be answered in court. The blue formation will also question on this matter in the Senate the third vice president and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, and the Minister of Consumption, Alberto Garzón, whom Maroto has described as “a minister who only swarms by Moncloa in the meetings of the Council from time to time “.

From the OCU they say that the government’s shock plan is going in the right direction, but they attribute a temporality bias to it. They believe that some measures, such as the abolition of the special tax on electricity should be permanent . They also maintain that the measures must be structural in the wholesale market, in the formation of prices and more clarity in the receipt of electricity and in the offers of electricity companies.

On the other hand, the Minister of Social Rights and leader of Podemos, Ione Belarra, has underlined that they see part of their proposals collected , such as intervention in the market by withdrawing the “unfair” benefits that electricity companies receive from the sky, in the package of measures approved by the Council of Ministers to lower the price of electricity. Belarra has also indicated that “courageous” and “forceful” initiatives have been adopted , as United Podemos had been demanding for a long time.

Faced with the uproar caused, the Ministry of Ecological Transition has responded in a forceful way that ” the reduction of CO2 has a floor of 20 euros per ton of CO2, which coincides with the price that was when the electricity companies signed the closing protocol in March 2019.

It does not imply any detraction of the income they received when they signed it. Moreover, it contemplates their expectations of higher income due to the rise in CO2 by granting them 10% of the income arising when CO2 is above those 20 euros per ton”. Likewise, it has ensured that” the reduction mechanism replicates the system implemented between 2007 and 2009 by virtue of RDL 3/2006 and 11/2007, which was validated by the EU Court of Justice “and that,” also , the guarantees have been increased by incorporating the recommendations of the CNMC and the Council of State “.

Cessation of nuclear activity
Meanwhile, the Forum of the Spanish Nuclear Industry has communicated that if the CO2 bill goes ahead, there will be a very harmful cessation of the activity of the nuclear park . “The excessive tax burden on the Spanish nuclear fleet and the impact of the bill on the CO2 in its current form, together with the 3,000 million euros earmarked for investments to be made until the cessation of the operation of the nuclear fleet in 2035, he they would lead to its economic-financial unfeasibility and would lead to the anticipated cessation of the activity “, they add.

The Government has responded that “the closure of the power plants, on the other hand, has to be approved by the system operator, REE, considering the system’s security criteria.”

Sam Brad

The Great Writer and The Passionate Poet As Well, He Graduated from University Of Florida in Journalism and Brad have around 12 years of experience in news and media section.

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