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HomeLatest NewsIndustry modifies the Statute of electro-intensive to facilitate aid

Industry modifies the Statute of electro-intensive to facilitate aid

Date: April 12, 2024 Time: 18:00:49

The Council of Ministers will approve this Tuesday a modification of Royal Decree 1106/2020, of December 15, which regulates the Statute of electro-intensive consumers. Specifically, it will relax the obligations in the field of consumption and will expand the number of economic sectors that will be able to access the aid and compensation provided by the Government. The aid will consist of a reduction in the charges paid on the electricity bill, with discounts of 75% for companies that are “at risk” and 85% for those that are at “significant risk”.

In addition, the obligation that 50% of electricity consumption be in off-peak hours has been confirmed to La Información by sources from the Ministry of Industry, Commerce and Tourism. The sector has been demanding that this requirement be eliminated and that the aid from the Statute be unlinked to high availability, as well as grading them according to the intensity of electricity use.

The Executive was also able to extract minerals and various materials in the electro-intensive catalogue: abrasive materials, asbestos, silicon fossil meal, natural graphite, steatite (talc), feldspar, natural asphalt, asphaltite and asphaltic rocks; natural solid bitumen and precious stones, quartz, mica, etc. Electro-intensive consumers are obliged to have a predictable consumption, for which they must provide Red Eléctrica -as system operator-, either directly or through their retailer, their monthly consumption forecast with a precision of their hourly program of demand greater than 75%. If they do not comply, they lose the status of electro-intensive consumer and, therefore, access to certain aid and compensation from the Government.

In line with the CNMC

In its report on the possible modification of Royal Decree 1106/2020, the National Commission for Markets and Competition (CNMC) has already advocated including in the Statute appreciations that would lower the obligations in the field of consumption. Competition states that “Like detours will not be taken into account for participation in the demand response service -a former interruptibility-, or caulquer Another Mechanism with Similar Characteristics, Affects of Compliance with the Precision Requirement of the Hourly Consumption Program”.

The public consultation prior to the draft royal decree received allegations from eight agents, of which two did not make any observations. Among them are the Association of Companies with Large Energy Consumption (Aege), the Business Federation of the Spanish Chemical Industry (Feique), the Spanish Federation of Industries and Food and Beverages (FIAB) and Repsol. The Ministry of Industry, Commerce and Tourism has awarded aid worth more than 42.5 million euros to 364 facilities within the charge compensation mechanism for electro-intensive consumers. The Executive also extended until June this year the 80% reduction in the import of electricity tolls. He calculates that this measure will mean about 112 million euros.

Likewise, the application of the tax rate of 0.5% of the Special Tax on Electricity and the suspension of the Tax on the value of the production of electrical energy of 7% are maintained. For its part, in November, the Government awarded 244 million euros to large industry as compensation for the costs of indirect CO2 emissions corresponding to 2021, 65 million more than initially established. Aege requested that the item be increased to 500 million in the General State Budget (PGE) for 2023, but the Government has maintained it. According to the employers’ association, which brings together companies that account for more than 10% of national electricity consumption, this only means 16% of the 3,000 million that are expected to be obtained from the emission rights auctions.

Electricity bill

THE Companies That Make Up Aege Closed 2021 With Electric Surcharges That Exceeded 1,500 Million EUROS, More Than DOUBLE THAN ITS EUROPEAN Beginners, MICE That Last Year The Bill Rose To More Than 2,000 Million, Even With Falling Demand On 25 % From the association they point out that the forecasts indicate that the price of electricity for Spanish electro-intensive plants will remain above 100 euros per megawatt hour (MWh) this year, thus being “at clear disadvantages” compared to their European counterparts.

For electro-intensive consumers, the price of electricity has gone from being the main element in production costs to having more weight than the rest of the variables of production meetings, which makes them “extremely sensitive to the cost of electricity”, according to the employers’ association . In order to lower its electricity bill, the big industry has yet to celebrate what will be the first private auction of renewable energy in Spain. Organized by Aege, it will be open to all electro-intensive consumers and its purpose is to obtain PPA contracts with renewable energy projects at competitive prices. The available technologies will be wind and solar and the bid does not need the approval of the Government as it is a private contract. Only companies that justify their status as electro-intensive can attend.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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