Electricity. The government “rejects the alarmist statements” of the president of Endesa. EDP ​​does not expect further price changes before the end of the year – Observer

The Ministry of Environment and Climate Action guarantees this Sunday that the price of energy will not increase within the values ​​announced by the president of Endesa and “rejects” what it describes as “alarmist statements” by Nuno Ribeiro da Silva. The Secretary of State for Environment and Energy also ensures that “there is no 40% increase”. In the meantime, EDP Comercial has also come to guarantee that “does not plan to make further changes to the price of electricity by the end of the year”.

This is an interview with the president of Endesa, a Spanish energy company, in Antena 1 and Jornal de Negócios. Nuno Ribeiro da Silva newspaper that electricity could increase by more than 40% in August.

In particular, from the end of August, but already in the July electricity consumption bills, people will have a bad surprise. […] We are talking about something in the order of 40% or more, compared to what people have paid,” said the president of Endesa in the interview published on Saturday evening.

According to Nuno Ribeiro da Silva, some national consumers will start paying the so-called “gas brake”, an exception created for Portugal and Spain that allowed a discount on the prices of natural gas used for electricity generation, after an agreement with the European Union Commission.

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Contacted by the Observer, the Ministry of the Environment and Climate Action immediately denied this. A few hours later, the Secretary of State for Environment and Energy also said that values ​​are unconfirmed.

Contrary to what the president of Endesa said, there is no increase of 40%. If you are talking about commercial offers from the company itself, only you can say that,” said João Galamba, in statements to Agência Lusa.

For the government, these statements, regarding the Iberian mechanism, “do not correspond to the truth”, since “the prices with the mechanism will always be lower than without”. Thus, as João Galamba explains, associating a price increase with the mechanism “makes no sense, it is an impossibility”.

In the note sent to the Observer by the Ministry of the Environment and Climate Action, the supervisory authority specifies that “sees no justification for the price increase that has been reported. by the head of Endesa.

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In the response sent to the Observer, Duarte Cordeiro’s guardianship also guarantees that “the Iberian Mechanism does not generate a tariff deficit” and recalls that “it was negotiated and approved by the European Commission and with the competition sector”.

The government does not deny that there can be significant increases in the liberalized market, but adds that “the free market has other suppliers and consumers will always be able to seek better prices”. Compliance with the regulated tariff is also proposed, “which was reduced by 2.6% in the second half of this year”.

Duarte Cordeiro’s guardianship also recalls that “market prices have increased due to the war and the rise in gas prices”.

The Iberian mechanism that defines an exceptional pricing regime in the Iberian electricity market (MIBEL) entered into force on June 15, to deal with the increase in energy prices caused by the war in Ukraine. It aims to set a maximum price for natural gas used in power generation plants.

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In an interview with Antena 1 and Jornal de Negócios, the president of Endesa claims that the measure only benefits Spain. The Department for the Environment and Climate Action says prices in Portugal and Spain “have always been lower than those in countries like France or Italy”.

EDP ​​​​Comercial indicates this Sunday that “it does not plan to make any further changes to the price of electricity by the end of the year, except in exceptional circumstances in the coming months. The answer comes after the statement from the Department of Environment and Climate Action and the reaction from the Secretary of State for Environment and Energy.

In a note sent to the Observer, EDP Comercial notes that, if the price of electricity must be increased, “the tariffs will be updated by the company according to market conditions”.

EDP ​​Comercial also recalls that the business electricity price update for residential customers “already came into effect on July 1 and represented an average drop of 2.9%”.

Article updated at 6:40 p.m. with the announcement of EDP Comercial

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