Before 1 July 2008 she set up a bidding mechanism whereby traders of last resort will be obliged to acquire, from 1 January 2009, the amount of natural gas for supply of last resort to be determined
- Industry has passed another Order on revising the tolls and charges for access to natural gas facilities, while salaries are updated for 2008 of the activities regulated gas sector
- On 1 January next year also comes into force the new maximum price of retail gas cylinder of 12.5 kg, which becomes of 12.94 euros
The Ministerial Decree reviewing natural gas rates will be published in the Gazette in the coming days and will enter into force on 1 January 2008. The price of natural gas for domestic consumers will increase an average of 4.73%, following the recent upward trend of prices.
The percentages of increase are the result of the application review procedure automatic quarterly (January, April, July and October) rates by applying a formula whose main variables are the prices of petroleum products and crude oil during the six months prior to the application of prices and changes in the euro-dollar last quarter.
The moves to increase all rates for domestic consumers and small businesses (all fare group 3). Thus, the details of the percentage changes for different consumer types is as follows:
- 4.93% for domestic consumers with rate 3.1. (consumption less or equal to 5,000 kWh / year).
- 4.83% for domestic consumers with rate 3.2. (consumption of 5,000 kWh / year and 50,000 KWh / year). This installment is being hosted the majority of subscribers.
- 4.4% for SMEs and small industries Rate 3.3. (consumption between 50,000 kWh / year and 100,000 kWh / year).
- 4.17% for SMEs and small industries Rate 3.4. (consumption over 100,000 kWh / year).
It should be recalled that last July 1, 2007 rates disappeared in Group 2 (industrial and service sector connected to medium pressure), so that it persists only in the domestic rates and SMEs.
Rate of last resort
Law 12/2007, approved last June, transposes into Spanish law Directive 2003/55 of the European Parliament and Council of the natural gas market. These regulations establish the disappearance of the tariff system. With the demise of the market rate, only there the open market, which will be part of all customers without exception.
In this new model, in which natural gas becomes exclusively supplied by the marketers, there are nevertheless some consumers who, for lack of sufficient bargaining power in the market, must be protected. For this reason, the Directive includes the figure of the supplier of last resort, which will be required to supply this type of consumer. Also, please do so at a maximum price ( “tariff of last resort”) to be set by the Ministry of Industry, Tourism and Trade.
Law 12/2007 states that the rate of last resort has to be calculated according to an additive process, to reflect the cost of raw material, the corresponding access tolls, marketing costs and the costs of security supply.
Thus, in accordance with the provisions of the Act, as of January 1, 2008 comes into force the rate of last resort, the only eligible consumers connected to gas whose pressure is less than or equal to 4 bar. However, the supply system to charge by the distribution companies in force before the entry into force of Law 12/2007 of 2 July, will remain until the 1st of July 2008 in all respects. Therefore, taking into account the above and in order to avoid distortions to the market rate that survives until 1 July 2008, the regulated rate equals the rate of last resort.
Auctions
In order to get price signals that help fixing the maximum prices of last resort, before 1 July 2008 she set up a bidding mechanism whereby traders of last resort will be obliged to acquire, from January 1, 2009, the amount of natural gas for supply of last resort to be determined. The amount and conditions of the auction will be adopted by resolution of the General Secretariat of Energy.
The auction will be organized by an independent and supervised by the National Energy Commission. We must remember that the Royal Decree 1068/2007 of 27 July, regulating the implementation of the provision of last resort in the natural gas sector, and trading companies established which will assume the obligation of providing last resort natural gas.
Consumer information
Effective July 1, 2008 shall cease to apply the tariff of last resort for consumers with annual consumption of over 3 GWh / year, as indicated by the implementation schedule of rates of last resort provisions of Law 12 / 2007 and will culminate in July 2010, when the only consumers of last resort service will be those who claim less than 1 GWh. In this sense, marketers of last resort and, where appropriate, (for those consumers who do not have a temporary supply contract with a marketer force), distributors must inform their customers, at least five months in advance the due date, when they will apply the provisions of the said schedule.
Compensation of activities regulated gas sector
Along with the ministerial order setting the new price of gas, industry has passed another Order on revising the tolls and charges for access to natural gas facilities. Thus, it includes an increase to all tolls in force by 6%, with the aim of ensuring revenue adequacy of the system (tolls and tariffs have to cover the salaries for the transmission and distribution facilities, cost of Technical System of the National Energy Commission …).
Apart from the above, and by not running this year’s Order of ordinary remuneration, this Order toll also includes certain aspects of the economic system of regulated activities in the gas sector, including the upgrade of their salaries for 2008.
New prices for the gas cylinder
Furthermore, from next January 1 the maximum price for retail gas cylinder of 12.5 kg becomes of 12.94 euros. This new price represents an increase of 65 cents. / bottle, for the one in force since October 1, 2007 (12.29 euros / bottle). The new price of the gas cylinder due to the changes in international markets for the three main factors that make the automatic formula which is calculated quarterly maximum prices for this product. That is, it takes into account the cost of raw materials, that this time increases by 15.66% (going from 586.47 to 678.33 $ / ton), the freight, which increase $ 5.6 / t (10.43%), from 53.7 to 59.3 $ / ton, and increased exchange rate dollar / euro of 5.03% (appreciation of the euro).
It is recalled that the price of gas cylinder in our country is much lower than those of surrounding countries. For example, in the case of Portugal the current average price of a bottle of 13 kg, including the cast house, is 21.50 euros a bottle. In the case of France, the current average price of a bottle of 13 kg is of 26.50 euros a bottle.
Tags: domestic consumers, natural gas, small industries, tariffs