The blackout on April 28 did not come free, and we consumers are going to pay for it. Iberdrola has confirmed that the extra cost caused by the “reinforced mode” that was activated after the massive blackout. And everything indicates that the rest of the electric companies will follow in their footsteps.
what has happened. They tell it in The World. Until now, the impact of the blackout on the bill had been limited because the CNMC intervened so that the electricity companies could not modify the price for customers who have contracted fixed rates. FACUA also issued a statement warning that rates could not be raised if it did not appear in the contract. The blackout was more than six months ago, more than enough time for many free market contracts to have been renewed. This has given Iberdrola the opportunity to introduce clauses that allow them to pass the cost on to customers.
Reinforced mode After the blackout, the so-called “reinforced mode” was activated. This adjustment involves intervening in the market to incorporate more conventional energy (gas, hydroelectric and nuclear) and limiting the entry of renewables with the aim of avoiding voltage failures. And of course, these energies are more expensive, in addition to requiring more auxiliary services to stabilize the network. The problem is that this It started as a patch after the blackout, but it has become the new normal which remains half a year later.
The cost. It covers from the blackout until September and amounts to 210 million euros distributed between Spain and Portugal. Of this sum, Spain assumes the majority, with 180 million euros. Iberdrola regrets that the change in the system by Red Eléctrica is entailing an extra cost that “affects our results” and they hope to transfer 70% of this amount to their clients before the end of the year.
Not just Iberdrola. Nothing prevents the rest of the electricity marketers from following in Iberdrola’s footsteps. According to El Mundo, the total cost of the reinforced mode in these six months amounts to 731 million euros and it looks like it will remain active for longer, so this amount will increase. The CNMC warns that any change in contract prices must be communicated transparently.
From one pocket to another. In the Iberian Peninsula there are five nuclear power plants, 1,300 hydroelectric plants and some 200 gas plants. These conventional (non-renewable) energy plants are providing more energy as long as the boosted mode remains active and they are receiving more income for it. What is striking is that they mostly belong to private companies such as Iberdrola, Naturgy either Endesawho are the ones who will end up increasing the price of the invoice.
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