Nuclear companies warn that they will not be able to continue operating if their remuneration is reduced

The nuclear sector was the first to show yesterday its “rejection” of the royal decree law approved by the Government with new measures to lower the electricity bill. Foro Nuclear, the employer of this industry, warned that the measures put in place by the Executive “delve even deeper into the penalization of electricity generation of nuclear origin”, “even though they are of temporary application”.

In this sense, he rejected action on the remuneration of CO2 not emitted from the electricity market. The association considered that if it is applied to nuclear energy in the terms proposed by the Executive, together with the “current excessive fiscal pressure”, it would lead to the cessation of the activity of the entire nuclear park.

Foro Nuclear warned that if the norm were approved in this way, the real sale price of nuclear electricity generation, once the price of CO2 has been reduced, should not be less than 57-60 euros per megawatt hour (MWh) with the current tax level. Otherwise, he indicated that the continuity of Spanish nuclear power plants would be impossible. “If this bill had been in force, the renewal of the operating authorizations of our plants would not have been requested. If it were to come into force, the law should not be applied retroactively,” he warned.

In the opinion of its president, Ignacio Araluce, the early cessation of the generation technology that produces more electricity in Spain and that more greenhouse gas emissions avoids would lead to a disorderly closure of nuclear generation, and the consequent loss of jobs and industrial fabric, to a greater dependence on energy from abroad and an increase in price volatility in the wholesale market. “It would also prevent compliance with the objectives of the Integrated National Energy and Climate Plan 2021-2030 (PNIEC), especially in the reduction of _CO2 emissions,” Araluce argued.

For its part, the Association of Electric Power Companies (Aelec) also rejected last night the new package of measures approved by the Government, considering that they are “interventionist” actions that go against the electricity companies and create legal uncertainty.

The electricity employer urged the Executive to seek “truly effective” solutions that protect consumers under the regulated tariff or PVPC from daily volatility, in addition to once again pointing to gas as the main responsible for the escalation of the price of electricity in the wholesale market.

On the latest measures presented by the Executive, Aelec denounced that they unfairly penalize a sector “absolutely committed” to the electrification and decarbonization of society, territorial development and employment, as well as the protection of vulnerable groups.

Reform of the PVPC

Regarding the measure that cuts the extraordinary profits obtained by hydroelectric and nuclear generation plants due to high gas prices, he said that it is “unfair and unwise”, since it has an enormous impact on the stability of a sector that is neither responsible for this situation nor is benefiting from it. Therefore, it calls for a reform of the regulated tariff (PVPC), as in surrounding countries, to prevent consumers from being exposed to the volatility of the electricity market.

The employer recalls that the electricity companies have sold 100% of their basic production in 2021 and 75% in 2022 for months, so they are not benefiting from the price increase.

Source: Five Days