Banc Sabadell : The Supreme Court has urged the MITECO (Ministry for Ecological Transition and Demographic Challenge) to pay the main distributors €320 million euros owed to them after declaring the social bonus inapplicable (Endesa €152.2 million, Naturgy €64 million, Iberdrola €103 million).
In other related matters, the European Parliament has reached an agreement for the vote on the proposal on the reform of the electricity market, among which it is considered that emergency measures in the event of a sharp rise in prices will not include a cap for infra-marginal energies. The Commission is due to present a report in June 2024 to make progress on the so-called “escape valve” and to make a legislative proposal on these exceptional measures in the event of a crisis.
Assessment: The news of the social bonus is of little impact due to the reduced amount (< 1% capitalisation) and because it was expected after the final ruling on this payment issued in January 2022 as discriminatory; thus, only the amount of the compensation that was known yesterday remained to be settled.
On the other hand, eliminating any infra-marginal cap even in the case of exceptional situations is positive (although expected) and demonstrates the European (not so much Spanish) will not to interfere in the current marginalist electricity market.