The third vice president and minister for the Ecological Transition,

Teresa Ribera

, has opened the door to reform the regulated electricity tariff or PVPC to reduce its dependence on the wholesale electricity market (pool), which is currently at record highs after beating its price record

four days in a row

.

"These days, we are seeing a significant demand from electricity companies and organizations or sectors to introduce changes in the regulated tariff, which is something we have to look for," said Ribera in an interview in La Ser collected by Efe . "However, we know that the regulated rates that we have are cheaper than those of the free market, where a premium is paid precisely to avoid volatility," he added.

As explained by the minister, the regulated tariff has allowed the 10 million users who take advantage of it to have a discount with respect to the free market tariffs (in this case, 17 million people) precisely because of that premium. The problem is that, given that the wholesale market is expected to continue to rise, he considers that a formula should be sought to make the regulated one achieve some stability, since it currently depends on the volatility of the electricity market.

Thus, Ribera has indicated different formulas that could be used to reform the rate, such as

incorporating a fixed section "a little higher"

.

He has also regretted that the European Commission refuses to reform the marginalist pricing system.

This means that all technologies (that is, both renewable and non-renewable) are paid at the same price as the last one used to cover demand, which is usually a much more expensive gas than other energies.

In this sense, the third vice-president recalled measures already taken by the Government to lower the price of the invoice, such as the reduction of VAT and has assured that it is necessary "to continue looking for other elements within the European framework and the Spanish Constitutional framework. They allow us to keep reducing things. "

The price of electricity is at record highs this summer, with an average of almost 100 euros per megawatt hour so far in August.

This week the highest price in history has been exceeded since Monday to reach 115.83 this Thursday.

According to the criteria of The Trust Project

Know more

  • Teresa Ribera

  • Yolanda Diaz

  • European Comission

  • Light bill

  • economy

EconomyAmancio Ortega launches to invest in regulated sectors but rules out getting involved in management with the Government

SpainThe control of European funds unleashed the schism in Moncloa between Iván Redondo and Félix Bolaños

PoliticsUnidas Podemos torpedoes the expansion of the El Prat airport agreed to by Pedro Sánchez

See links of interest

  • Last News

  • Holidays 2021

  • Home THE WORLD TODAY

  • Podcast Economia

  • Lloyd Harris - Rafa Nadal, live

  • Chelsea - Villareal, live