201406 the energy sector in spain from the consumers' point of view asgeco for iea
DESCRIPTION
Short description of the main problems that consumers find in the spanish energy sector, especially in the power sector. Presentation for International Energy Agengy on behalf of consumer's association ASGECO.TRANSCRIPT
THE ENERGY SECTOR IN SPAIN FROM THE CONSUMER'S POINT
OF VIEWJorge Morales de Labra
Asociación General de Consumidores, ASGECO CONFEDERACIÓN n Plaza de Navafría, 3 Bajos - Local 1 y 2 – ES-28027 Madrid
Teléfono: (+34) 914 035 078 – Fax: (+34) 914 053 997 n www.asgeco.org - [email protected] n @ASGECO
Revisión (IDR) de la Agencia Internacional de la EnergíaMadrid, 26 de junio de 2014
>> OUR EXPERIENCE
> Oil & Nat. gascompetition has not brought lower prices to consumers
> may be because there is a local oligopoly…
> …inside a global oligopoly where spain has to import almost all the fuel
> in adition, we have their impact on enviroment
> our hope: massive electrification based on distributed renewables
THAT’S WHY WE FOCUS ON THE POWER SECTOR
Revisión (IDR) de la Agencia Internacional de la EnergíaMadrid, 26 de junio de 2014
>> THE MAIN PROBLEM WITH POWER SECTOR
> is not the price itself; but the lack of transparency:
Our bill is artificially divided on two components: the “market” component and the “regulated” component
> We don’t know the rule to asign each cost item to one group or another
> Some of the items of the regulated component are very well known (especially renewables subsidies), but it’s very difficult to find detailed information about some others (i.e. capacity payments)
> We are very worried about power pool, because 16 million customers’ bills are indexed to it from april
Revisión (IDR) de la Agencia Internacional de la EnergíaMadrid, 26 de junio de 2014
>> TOTAL ELECTRICITY COSTS (2012, MILL. €)
Item"Market"
component%M
"Regulated" component
%R Total %T
Production costs 16,832 100% 11,065 54% 27,897 74%Pool 11,893 71% 11,893 32%Ancilliary services 1,122 7% 1,122 3%Losses 1,243 7% 1,243 3%Capacity payments (investment) 613 4% 613 2%Capacity payments (avalaibility) 187 1% 187 0%Domestic coal 494 3% 494 1%Trading margin 1,280 8% 1,280 3%Industrial cconsumers cut-off incentive 484 2% 484 1%Special generation premiums (renewables, cogeneration, waste) 8,445 41% 8,445 23%Non-peninsular generation 1,622 8% 1,622 4%Non-peninsular generation (previous years) 514 2% 514 1%Nuclear fuel 2nd cycle 0 0% 0 0%
Net costs 6,481 31% 6,481 17%Transmission 1,477 7% 1,477 4%Distribution 5,003 24% 5,003 13%
Other costs 34 0% 3,047 15% 3,081 8%Tariff deficit repayment 2,952 14% 2,952 8%Nuclear moratorium 52 0% 52 0%Regulatory Authority 23 0% 23 0%System operator 20 0% 20 0% 40 0%Market operator 15 0% 15 0%
Total costs 16,867 100% 20,592 100% 37,459 100%45% 55% 100%
COLOR LEGENDOFFICIAL BULLETINOFFICIAL BULLETINMARKET (OLIGOPOLY)
Revisión (IDR) de la Agencia Internacional de la EnergíaMadrid, 26 de junio de 2014
>> SOME QUESTIONS
> Why renewables subsidies are included in the “regulated” component and domestic coal is included in the “market” one?
> Why net losses are included in the “market” component?
> and above all…
Revisión (IDR) de la Agencia Internacional de la EnergíaMadrid, 26 de junio de 2014
>> WHY ONLY THE RENEWABLES COSTS ARE HIGHLIGHTED…
Revisión (IDR) de la Agencia Internacional de la EnergíaMadrid, 26 de junio de 2014
>> …AND NEVER THE POOL SAVINGS?
Revisión (IDR) de la Agencia Internacional de la EnergíaMadrid, 26 de junio de 2014
>> SO CLEARLY, THE MORE RENEWABLES, THE LOWER THE POOL PRICE
> but… how much? does this “merit order effect” compensate subsidies?
> In other words, a power system without renewables would be cheaper than the actual one?
> In adition, sun and wind production depends on weather but…
Revisión (IDR) de la Agencia Internacional de la EnergíaMadrid, 26 de junio de 2014
>> WHO DECIDES THE HYDRO PRODUCTION LEVEL?
Revisión (IDR) de la Agencia Internacional de la EnergíaMadrid, 26 de junio de 2014
>> MOREOVER, THE SHARING OF COSTS IS BASELESS
> SO, WHO PAYS FOR RENEWABLES AND WHO BENEFITS FROM POOL SAVINGS?
Revisión (IDR) de la Agencia Internacional de la EnergíaMadrid, 26 de junio de 2014
>> THE CONSEQUENCE: WE PAY WHAT OTHERS DECIDE
Revisión (IDR) de la Agencia Internacional de la EnergíaMadrid, 26 de junio de 2014
>> OUR ALTERNATIVES
OUTSIDE
> Competition? 97% of our final price is the same for all the traders
> +70% market (generation and trading) under oligopoly control
SO, BETTER INSIDE
> Energy efficiency
> Self production
Revisión (IDR) de la Agencia Internacional de la EnergíaMadrid, 26 de junio de 2014
>> BUT WE FIND MANY OBSTACLES
> +92% growth of fixed part of household tariff in just one year (from €22 to €42 per kW and year)
> Out of proportion penalties for not declaring a rooftop solar panel for self consumption (up to € 60 MM)
> Back up toll (c€ 7 /kWh)Have you ever wonder what would happen if you had to pay to the supermarket for the tomatoes you grow in your vegetable garden?
> DRAFT STRATEGY: SPAIN IS PROBABLY THE ONLY COUNTRY AVOIDING SELF PRODUCTION WITHOUT EVEN REGULATING IT
Thank you.
Asociación General de Consumidores, ASGECO CONFEDERACIÓN n Plaza de Navafría, 3 Bajos - Local 1 y 2 – ES-28027 Madrid
Teléfono: (+34) 914 035 078 – Fax: (+34) 914 053 997 n www.asgeco.org - [email protected] n @ASGECO