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Thursday, May 26, 2022
HomeLatest NewsAll bets on Iberian exclusion and gas cap | Fernando Pastor's...

All bets on Iberian exclusion and gas cap | Fernando Pastor’s opinion

There is a key issue in the proposal of the Spanish government to the EU on raise the price of gas what is difficult for the rest of the European partners, who have perhaps the broadest views on this issue, to understand: the rationale given by Sánchez for achieving an Iberian exclusion and taking this measure at the last summit was practically risk of social catharsis in Spain if people continued to pay double or triple electricity bills, but a month later Spain sends a decree in which taxpayers on the edge of the precipice, both households and companies, will bear millionaire cost that affected companies should receive compensation. With a gas price capped at 30 euros and electricity less than 70, one would understand that this effort could be sustained without problems, given that the increase generated in the time slots in which the most expensive are paid is small compared to you get a reduction in general. But with the price of gas capped at 50 and electricity capped at over 120, the increase that could occur could result in the discount being very short.

In any case, it is already very burdensome for taxpayers to see how the account has been growing in Spain for almost a year, so far no one has been able to do anything but lower taxes as much as possible. It is clear that the decision to decouple the price of gas from the pool in Spain is the fastest way to reduce the cost of the margin model, but given the complexity of the measure, the annoyance it entails for the EU, the opposition of almost all partners (including the Commission) and the constant steps, taken at the European level to mitigate dependence on Russian gas, it is time to think about how the cure that never comes is worse than the disease.

The boldness of the proposed measure Teresa Rivera no doubt. One can even see the reasons for fairness, given that it doesn’t seem logical right now that the most expensive technology is setting the price of a pool that has generated huge sums of money across Europe to support renewables – the supposed salvation of all – but what about the scenario of a war in Ukraine and that The pressure that Putin has on the price of gas for a year may not be the most convenient. No one likes the “goods from the sky” of the electric companies at a time when everyone’s electricity bill is not growing, but it must be admitted that when gas was 18 euros (at the beginning of last year) and electricity was less than 40 per megawatt hour, no one was worried about this.

The real benefit of restricting Ribera and Sanchez’s gas is that it can slow down inflation escalation, a fact that in Spain depends too much on energy prices and makes us all poorer every day. The executive branch knows that if it does not quickly stop this trend, strangulation of the Spanish economy will be filed as the ECB starts raising interest rates steadily from next July. Debt financing will absorb some public resources that will not go to investments or services, and only European funds, while they are available and coming, can alleviate the feeling that the entire Spanish economic structure is gradually collapsing.

Strangely enough, the future of almost the entire economy in the medium term now depends on this operation to reduce the price of gas in Spain, which makes electricity cheaper. Unsurprisingly, Sánchez, in an unusual manner, given his Europeanism above all else, reminded the President of the European Commission this Friday that Spain’s “strategic autonomy” must be respected in this case. Spain plays too much in this duel with Europe how to take the wrong step. The EU approval will be a relief and the start of an economic phase where a commitment to renewable energy, green hydrogen and green transition can make our country a key energy partner on the continent; a failure that destroys the practical implementation of the Iberian exception may be the beginning of the end of the legislature.


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