The creation of a market where renewables sell only at PVPC’s domestic rates and at industry could end the entire sector.
A new front opens up to the Government. The Association of Independent Energy Marketers (ACIE) has sent a communication highlighting the need to avoid crossing red lines that could adversely alter free competition and liberalization of the electricity market.
It is his response to the recent information that indicates that MITECO would be considering approving a Royal Decree where will exclude renewable generators that receive the specific remuneration (RECORE), to create a market that offers a rate to domestic customers at an intervened price.-
Javier Bescós, President of ACIE points out that “in recent weeks we have been made aware by the BOE or by press headlines of measures already worked on during the previous weeks that have a full impact on the commercialization business and on which we have not been able to comment or establish what implications they have” .
Taking into account that these measures fully impact marketers without the Association having been summoned by the Ministry or the Secretary of State for Energy, despite their repeated requests since September.
According to recently published information, The Ministry for the Ecological Transition would be considering excluding generators of renewable, cogeneration and waste that receive the specific remuneration established in the (RECORE) regime, giving giving rise to the configuration of a market parallel to the current daily energy market with the aim of providing a rate to domestic customers at an intervened price.
From the marketers’ point of view, if this measure were applied without nuances, it would imply a immediate brake to the liberalization of the retail market and a potential massive transfer of customers to the domestic tariff to be implemented, by constituting an artificially reduced tariff with which free marketers could not compete.
In addition, they consider that it would have the potential to break the complete financing scheme through the activity of representing independent generations, which provides them with a source of financial working capital that makes their activity viable. Which can, therefore, endanger their continuity.
Complaint to the EU
At this juncture, ACIE has sent an urgent communication to the Ministry requesting that certain red lines not be crossed. If not, free competition and liberalization of the electricity market can be adversely altered. But also the current configuration of the electricity market, the participation of renewables in competition with other agents within the same market, and the current configuration of the representation services of independent agents with the current limitations to the incumbent agents.
If the current structure of the representation service is altered marketers would lose a source of funding of approximately € 1 billion and they would have to deposit a huge amount of guarantees with OMIE (Operator of the Iberian Energy Market) with their own funds. In addition to supplying the generation of possible conflicts between marketers and the affected producers in relation to the hedging contracts that they may have signed.
“As marketers, we have been costing our clients’ Covid payment delays, non-supply cuts due to non-payments, VAT reduction, and if these measures are complied with, the viability of independent marketers will be altered,” he adds. Javier Bescós.
Remember in this regard that ACIE has already requested an ICO financing line from the Ministry of the Economy to facilitate bilateral agreements between ICO and companies without the intervention of financial entities, which are not providing credits for the activity.
ACIE anticipates a complaint to European authorities if the announced measures are maintained, which are contrary to the price setting limitations (within the framework of the principles of liberalization of the electricity sector that govern the European Directives and Regulations on this matter), intervention in the market and its configuration for the purposes of market coupling in the European internal market.