Kadri Simson, the European Commissioner for Energy, has confirmed that Community Executive is “aware of the discussions that are taking place in Spain in relation to the recent changes in wholesale electricity prices and the measures taken by the Government to reduce the overall cost of bills.”
The Commission is in contact with the Spanish authorities and is aware of their view on the design of the electricity market,” says the European Energy Commissioner in reply to MEP José Ramón Bauzá’s question about complaints made by the Spanish government against the design of the European electricity market.
Servimedia has access to the Commissioner’s response, which says that wholesale electricity prices were at historic lows during the early stages of the pandemic, so some increase could be expected.
“High” prices, he continues, result from a number of factors including recovery of economic activity and high seasonal demand, which must be added to the rise in Emissions Trading Scheme prices and the price of gas largely due to demand for liquefied natural gas from Asia.
“This may affect electricity bills.”. However, due to the increasing penetration of renewables, contracts where the price of electricity follows the wholesale price tend to be more affordable for consumers throughout the year,” notes Simson.
“EU law also provides protections for vulnerable households and those living in energy poverty,” said the European Energy Minister, who explained that the electricity bill takes into account not only the price of production, but also the costs of transport and distribution (network costs), as well as taxes and levies. “An overall efficient electricity market design is the most effective means of reducing total system costs and bills,” says the Commissioner.