Coinciding with a cold wave and in the midst of a pandemic, on the 9th January, the wholesale market’s energy price in Spain reached 121.24 €/MWh, the highest in the EU and the 2nd highest daily average value since 2002. This increase affects 40% of the consumers?
The rise in prices coincides with a peak in demand associated with combined cycle gas plants” commissioning, which generates more expensive energy than renewable sources, Pricing by auction and low renewable energy sources participation in the energy mix are two key elements of this situation.
The consumer association FACUA calls on the Spanish government to end with ‘windfall profits’ and reduce indirect taxes on household energy consumption, which represent 27% of the bill.
Considering the Directive 2019/9447 and the fact that Spain is not adopting sufficient measures to prevent these price distortions:
1 Is the Commission against a tax cut on household electricity consumption?
2 Does the Commission recommend that Spain undertake reforms to end with ‘windfall profits’?
3 Is the Commission aware of the Spanish authorities laxity regarding the need to increase the
share of renewable energies?