The document discusses issues with the energy sector in Spain from the consumer's perspective. It notes that competition has not lowered prices due to an oligopoly in oil, gas, and power production. Electricity bills are not transparent, with costs divided between "market" and "regulated" components arbitrarily. Renewable subsidies are highlighted but savings from lower pool prices due to renewables are not. The organization argues for more transparency, efficiency incentives, and allowing self-production without penalties.

1. THE ENERGY SECTOR IN SPAIN FROM
THE CONSUMER'S POINT OF VIEW
Jorge 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 - info@asgeco.org n @ASGECO

2. Revisión (IDR) de la Agencia Internacional de la Energía
Madrid, 26 de junio de 2014
>> OUR EXPERIENCE
> Oil & Nat. gas
competition 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

3. Revisión (IDR) de la Agencia Internacional de la Energía
Madrid, 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

4. Revisión (IDR) de la Agencia Internacional de la Energía
Madrid, 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 LEGEND
OFFICIAL BULLETIN
OFFICIAL BULLETIN
MARKET (OLIGOPOLY)

5. Revisión (IDR) de la Agencia Internacional de la Energía
Madrid, 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…

6. Revisión (IDR) de la Agencia Internacional de la Energía
Madrid, 26 de junio de 2014
>> WHY ONLY THE RENEWABLES COSTS ARE
HIGHLIGHTED…

7. Revisión (IDR) de la Agencia Internacional de la Energía
Madrid, 26 de junio de 2014
>> …AND NEVER THE POOL SAVINGS?

8. Revisión (IDR) de la Agencia Internacional de la Energía
Madrid, 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…

9. Revisión (IDR) de la Agencia Internacional de la Energía
Madrid, 26 de junio de 2014
>> WHO DECIDES THE HYDRO PRODUCTION LEVEL?

10. Revisión (IDR) de la Agencia Internacional de la Energía
Madrid, 26 de junio de 2014
>> MOREOVER, THE SHARING OF COSTS IS BASELESS
> SO, WHO PAYS FOR RENEWABLES AND WHO BENEFITS FROM POOL SAVINGS?

11. Revisión (IDR) de la Agencia Internacional de la Energía
Madrid, 26 de junio de 2014
>> THE CONSEQUENCE: WE PAY WHAT OTHERS DECIDE

12. Revisión (IDR) de la Agencia Internacional de la Energía
Madrid, 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

13. Revisión (IDR) de la Agencia Internacional de la Energía
Madrid, 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

14. Thank you.
comunicacion@asgeco.org
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 - info@asgeco.org n @ASGECO