CESUR auctions will disappear

The Secretary of State for Energy, Alberto Nadal, has announced that the Government is going to definitively eliminate the auctions that were used to set the unregulated part of the electricity bill each quarter.

Nadal explained in an interview with the newspaper El País that, starting this month, the variable part of the receipt, 45% of the total, will be determined directly from the average wholesale market price during the billing period.

This decision comes after the Government's decision last December to annul "for all intents and purposes" the last of these bids, in which the electricity companies agreed that the electricity rate would rise by more than 11% in January, predictably in around 11.5%.

On that occasion, the Government relied on the resolution of the National Competition Market Commission (CNMC) by which it stated that it was not appropriate to validate the electricity auction "given the concurrence of atypical circumstances in its development and in a context of high prices in the daily market during the previous weeks".

News published in www.elconfidencial.com