Accumulated debt due to electricity deficit in Spain fell by 13.9% in 2020

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Accumulated debt due to electricity deficit in Spain fell by 13.9% in 2020




Electric towers on the summit of El Palo, near Pola de Allande


© Reuters/PAUL HANNA
Electric towers on the summit of El Palo, near Pola de Allande


Feb 23 (Reuters) – The imbalance between revenues and regulated costs in the Spanish electricity system fell 13.9% year-on-year in 2020, in a context of lower energy consumption during the COVID-19 pandemic, according to data published in the Tuesday by the National Commission of Markets and Competition (CNMC).

According to the agency, the accumulated debt due to the deficit of the electricity system in Spain reached 14,294 million euros in 2020.

The mismatch between the income and regulated expenses of the electricity system, which accumulated a debt of more than 25,000 million euros, caused a serious conflict with the sector and led the Government of then-President Mariano Rajoy to change the legislation in 2013 and adjust the remuneration of renewable energies, raise other costs of the system and raise rates also for small consumers.

The CNMC highlighted that from 2000 until 2013, the income of the Spanish electricity system was insufficient to cover its costs. In this way, a debt was generated that, at the end of 2020, reached 14,294.32 million euros, 13.9% less than in 2019.

In 2014, the system registered for the first time a surplus of 550.3 million. This situation was repeated during 2015, 2016, 2017 and 2018, “although each year to a lesser extent,” according to the CNMC.

The aggregate surplus that was generated from 2014 to 2018 reached 1,687.5 million euros.

According to forecasts, the amount pending collection of the debt of the system will be paid in 2028.

(Information by Tomás Cobos; edited by Darío Fernández)

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