State payments to Endesa must now be authorized by Galamba

Payments for utilities to Endesa must now be authorized by the Secretary of State for Energy. António Costa also determines that the entities seek suppliers in the market who do not practice speculative prices.

All invoices related to the supply of energy by Endesa to state services can only be paid after being validated by the Secretary of State for Environment and Energy, João Galamba.

The decision, which made the front page of the newspaper “Público” on Tuesday, was taken by the Prime Minister, in a decree dated Monday and communicated to the press today, the day the measure came into force. This follows statements by the president of Endesa, Nuno Ribeiro da Silva, who on Sunday, in an interview with “Jornal de Negócios” and Antena 1, said that electricity prices could increase by up to 40% following the introduction of the Iberian natural gas price adjustment mechanism.

In the order signed by António Costa, the Prime Minister states that, “given the threats of speculative practices on the prices to be practiced by Endesa and the duty of the State to protect the interests of taxpayers in the management of public funds “, it is determined that “the services of the direct administration and the indirect administration of the State cannot proceed to the payment of any invoice issued by Endesa, whatever their value, without prior validation, by order of the Secretary of State for Environment and Energy”.

In addition, the Head of Government also determines that, “to avoid the discontinuity of services”, public services and the Public Administration Shared Services Entity (ESPAP) must “carry out preventive market consultations, for the ‘possible need to contract new service providers who maintain appropriate business practices’.

the right reacts

The PSD announced that it will ask the Energy Services Regulatory Authority (ERSE) for an analysis of the “true effect” for consumers of the Iberian electricity price cap mechanism and criticized the “intrusion” of the government in the market.

“To fully elucidate this whole issue and really know in a clear and transparent way what the real effect of the brake mechanism is on the prices to be paid by all consumers (…), the PSD will immediately ask the ERSE to to be made and published in a transparent, rigorous and robust way a serious analysis on this subject,” said PSD vice-president Miguel Pinto Luz, in a statement to journalists at the party’s headquarters in Lisbon.

For its part, the Liberal Initiative accused the PS of “arrogance” and “retaliation” in determining that state services cannot pay Endesa’s bills without validation, considering it the modern version of “whoever confuses the PS gets it”.

“PS also means socialist arrogance because faced with the statements of a president of a private company that the PS does not like, what does he do? Retaliation”, criticized the president and deputy of the party, João Cotrim Figueiredo, in a video sent to editors. For the leader of IL, this “reprisal” is done in two ways, on the one hand by imposing the “validation of hundreds of invoices each month” and, on the other hand, by “threatening to change supplier, assuming that ‘there will be improper business practices’.

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