The European Commission is awaiting “further clarification” from Portugal on its social energy tariff financing model, following a 2020 verification request from EDP for allegedly discriminatory nature, a community source said Monday.
A community source told the Lusa agency that “the Commission has been in contact with the national authorities to assess EDP’s complaint about the social rate”🇧🇷
“Following the contacts between the Commission and the Portuguese government, the Commission awaits further clarification from Portugal,” said the same source.
Last week, EDP told Lusa that the European Commission has confirmed the discriminatory nature of the social energy tariff financing model, in response to the company’s 2020 verification request.
“In your answer the European Commission recognizes the legitimacy of the questions asked and confirms the discriminatory nature of the social tariff financing model in Portugal, which has been in force since 2010 and which does not follow the European directives in this area”said an official EDP source at the time.
In response, according to the electricity company, the community manager also recalled “the judgment of the European Court of Justice on a subject of the same nature, involving Viesgo and other Spanish companies, the conclusions of which also apply to Portugal, given its discriminatory nature “.
EDP reiterated that it “is in favor of the existence of a social tariff, but disagrees with the current financing model”, in which it is up to companies to bear the cost of the measure.
Electric announced on October 29, 2020 that it would ask the European Commission for an analysis of the mechanism for financing the social tariff borne by the producers, as it has cost more than €460 million since 2011 until then.
“EDP has decided, after the periodic analysis of the disputes, that it will discuss with the European Commission the conformity analysis regarding the future of the financing mechanism for social tariffs, borne by producers under the ordinary regime, in view of the rules and principles of the European Union,” reads a statement with results for the third quarter of that year sent to the Securities Market Commission.
The social energy tariff guarantees a 33.8% discount on final customer sales tariffs for households in financial difficulties, extended to unemployment situations in 2020.
Source: DN
