ACIE urges the Government to prohibit intra-group PPAs of dominant companies below 67 euros/MWh


The Association of Independent Energy Marketers (ACIE) has urged the Government to “not allow” the signing of intra-group long-term power purchase agreements (PPAs) in the dominant companies below 67 megawatt euros hour (MWh) “by establishing marketing game rules” to which independent marketers “cannot access”.

In this sense, they recall that the Brussels proposal involves establishing a remuneration limit for renewables of 180 euros/MWh, so if some of the initiatives included in the royal decrees approved by the Executive are extended to alleviate the rise in In energy prices, intra-group agreements for generation and commercialization of the dominant operators will continue to be promoted at prices “well below” the spot market and the futures market.

“The solution lies in not allowing intra-group long-term contracts or forcing the dominant groups in the sector to auction part of their generated energy in a way that is accessible to all marketers,” considers ACIE.

The organization recalls that last year it was established that any generation plant with more than 10 megawatts (MW) of power that did not use gas to produce electricity had to return the extraordinary profits obtained from the increase in the market price with the aim of reducing costs. electricity system charges and that the bill would decrease for all consumers.

However, ACIE points out that part of the energy from these plants was already sold at prices below market prices, so “these plants were not making any extraordinary profit.”

“To amend this, the Government later regulated some additional conditions, necessary for these plants to be exempt from this payment: they had to sign a purchase agreement -PPA- for more than 12 months, whether it was signed before or after this regulations, and the sale price of this electrical energy had to be less than 67 euros/MWh”.

In ACIE’s opinion, this regulation has meant that the large dominant groups, instead of integrating their generation benefits into the treasury’s coffers, “have earmarked them for the competitiveness of their marketing areas, being able to offer prices to that independent marketers can’t reach.

This situation is due to the fact that, according to the organization, independent generation is being “reluctant” to commit its energy in the long term with independent marketers.

“The CNMC (National Markets and Competition Commission) already has real data on a massive return of customers both to the reference marketers and to the unregulated marketing units of the large dominant groups,” says ACIE.

For this reason, it asks the Executive that the current regulation not be extended beyond December 31, 2022.

In addition, ACIE has also recalled that “it has been months” requesting the Ministry for the Ecological Transition to call inframarginal auctions where the large dominant groups must put part of their generation at the service of system agents to “allow real competition” in the activity electrical marketing.

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