Business · Energy & Commodities · 1 day ago
Power companies ask Spain’s regulator to examine post-blackout costs
Since a nationwide blackout on April 28, Spain’s grid operator, Red Eléctrica, has used more power from generators such as gas plants, hydroelectric plants and nuclear plants to help keep electricity supply secure.
Electricity companies say these measures create extra costs that appear in their financial settlements.
At least one major retailer has sent a detailed account of its concerns to the National Commission on Markets and Competition, or CNMC.
Retailers say they cannot pass the costs on to customers accurately.
Executives from Endesa and Iberdrola Spain have also criticized the costs and called for clearer rules and more transparency.
The CNMC is led by new president Juan José Ganuza and has powers to oversee competition and transparency in the electricity market.
The companies are asking the regulator to examine the issue, but no decision or next step is stated.
At least one major electricity retailer has sent Spain’s competition regulator a report about extra costs linked to measures introduced after the 28 April blackout.
The companies say the costs of strengthening supply security are reducing their margins and cannot be passed on accurately to customers.
Since the blackout, grid operator Red Eléctrica has increased the use of synchronous technologies, especially combined-cycle gas plants, to support the system.
Executives at the electricity companies’ annual meeting also called for action and raised concerns about the cost and transparency of these measures.
The regulator is led by Juan José Ganuza, who met senior electricity executives on 1 October.
- Who
- At least one major electricity retailer and other electricity companies have raised concerns with Spain’s competition regulator, the CNMC.
- What
- The companies are challenging extra costs tied to measures to secure electricity supply after a blackout.
- When
- The blackout occurred on 28 April. CNMC President Juan José Ganuza met electricity executives on 1 October.
- Where
- Spain.
- Why
- The companies say the costs reduce their margins and cannot be passed on accurately to customers; they also question the criteria and transparency.
This story does not have two clearly opposing sides.
shock plan
the cost of this additional effort is passed on to the consumer
the issue is that it is not known what criteria are applied and there is no transparency
A blackout occurred, after which Red Eléctrica intensified the use of synchronous technologies to support the system.
CNMC President Juan José Ganuza met senior electricity company executives at their annual assembly.
- Regulator
- Spain’s National Commission on Markets and Competition (CNMC)
- CNMC president
- Juan José Ganuza
- Blackout date
- 28 April
- Grid operator
- Red Eléctrica (REE)
- Reported extra-cost measures
- Increased use of synchronous technologies, especially combined-cycle gas plants
Sources
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