RE horror at Spanish reforms

SONY DSC

Prime Minister Mariano Rajoy's government is trying to close the tariff deficit

Spain’s renewable energy industry was horrified by a new reform of the country’s energy system announced by the government on Friday, saying part of the measures are retroactive and violate the principal of judicial security.

The Spanish cabinet had announced a series of measures aimed at reducing the country’s so-called “tariff deficit” of now more than €26bn, which has been accumulated as a result of a years-long disparity between generating costs and state-set electricity prices for consumers.

Among the measures are 3.2%-electricity price increase from August on, a €900m rise in power transmission costs, and a switch in the support for renewables from feed-in tariffs to a fixed “reasonable profitability” of 7.5%, valid retroactively from 2001 onwards and through to 2026.

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