The PP and PSOE pact in Brussels to reform the electricity business

He Popular Party (PP) and the Spanish Socialist Workers Party (PSOE) They can come to agreements. Although the 23J elections show otherwise. A critical issue such as the way in which it is produced, distributed and marketed the light throughout Europe has brought together the European socialists and popular, with a clear leading role of two members of Genoa and Ferraz.

Nicholas Gonzalez CasaresSocialist MEP, and Pillar of the Castle, popular MEP, celebrated last Wednesday the agreement reached in Parliament. The first, the spokesperson in Parliament for this reform who, after receiving the Commission’s proposal, proposed a series of amendments that matched the Spanish government’s roadmap and in which he had to give in to reach an agreement. “A new victory for the Group of Socialists and Democrats in the European Parliament in this green transition, but also a success for the European Parliament. We have a clear mandate to bet on inter-institutional negotiations”, highlighted González Casares at the end of the vote by the Parliament’s Industry and Energy Commission.

Del Castillo, for his part, has been key in working with the spokesperson for the popular Europeans, the Portuguese Maria da Graça Carvalho, and included a series of amendments aimed at preserving the current marginal pricing system. “The most complicated chapter of the agreement was the one referring to situations of energy crisis”explains Pilar del Castillo to Vozpopuli. “The spokesperson supported including a cap on revenue from inframarginal technologies and pricing. A proposal that has not received majority support and has not gone ahead”, Add.

PP, PSOE, Renew and The Greens

The representative of the PP comments that the agreement with the Group of Socialists and Democrats, Renew and Los Verdes leaves a reform that allows a greater integration of the energy market and does not harm the security of supply. She also celebrates that it is a pact between parties that respects legal certainty to attract investment, has a positive impact on the competitiveness of the Industry, offers a way to have affordable prices for consumersand helps vulnerable households, SMEs and energy-intensive industry in times of energy crisis.

“The objectives of the electricity market reform sought to reduce the volatility of wholesale market prices on consumer bills, make the bill more predictable, and boost investment in renewables. That is what the Commission presented and, with small improvements, that is what comes out of Parliament”, explains Del Castillo. “Now we have to wait for the Council of the European Union (EU) establish its common position which, to date, it has not reached”, recalls the PP MEP.

In the hands of the Council

The European Parliament is ready to start negotiations with the member states and the EU Commission (trilogues) for a final agreement. Parallel, the 27 EU countries have not yet finalized and agreed their negotiating mandate on the review of the EU electricity market design. The differences between France, Poland and Germany make the agreement impossible, for the moment. Positions are expected to come closer in the fall for the trialogues to begin. The reform of the design of the EU electricity market must be finalized by the end of 2023.

This proposal aims to put an end to investment uncertainty in the electricity markets and accelerate the construction of renewable, competitive and homegrown energy. The message that comes out of the agreement of the three ‘legs’ that make up the European Union will serve to generate trust between the investorsthose who bet on the sector, and for the consumers, those who assume the cost of this transition in their invoices. If there is no deal, the EU’s energy and climate targets will be out of reach.