The auctions of energy from Special Regime Generation (PRE) have reduced the extra cost of this energy for consumers by more than €100 million between 2012 and 2019.
The auctions of energy from Special Regime Generation (PRE) have reduced the extra cost of this energy for consumers by more than €100 million between 2012 and 2019, the regulator announced on Wednesday.
According to the report on the results of the 2012/2019 PRE auctions, published today by the Energy Services Regulatory Authority (ERSE), the auctions, which started in 2012, “made it possible to reduce the extra cost of this energy, paid for by all consumers in tariffs, by an average annual reduction of around €11.2 million.”
Between 2012 and 2019, 32 auctions of PRE energy were held, corresponding to a total auction volume of around 43.4 Terawatt-hours (TWh), which, according to the regulator, represents more than 85% of annual consumption in mainland Portugal.
In that period, the average daily market price was €47.61 per Megawatt-hour (EUR/MWh), while the average price of energy delivered for the products put up for auction was 49.93 euros/MWh, with a positive margin for the supplier, and consequently for the whole electrical system, of 2.32 euros/MWh.
“This margin translated into an accumulated value of €100.77 million, a net benefit for the National Electric System, as it corresponded to a reduction of the extra cost with PRE and, consequently, of the charges borne by consumers in the tariffs,” ERSE explains.
The extra cost of PRE is the difference between the price paid to generators that have a guaranteed tariff and the revenue generated from the sale of that energy in the market and is paid by consumers through fees included in the electricity bills.
The energy regulator introduced a system of auctions in the electricity sector in 2011 for the forward placement of energy from special generation schemes, such as energy from renewable sources, with the aim of reducing the volatility of the sale price and thus stabilising the extra cost of PRE.