Electrical suppliers Endesa and EDP have reacted angrily to the government’s decision to suspend money it pays out annually to “guarantee supply”. The executive’s reasoning is that there are no risks to the security of Portugal’s supply and to reduce subsidies of almost €20 million will see consumer bills fall by an average of €4. Endesa and EDP see the situation differently, saying the cutback represents a disincentive to investment.
EDP maintains the subsidy is “essential to guarantee supply”, while Endesa accuses the government of “having its belly full” due to recent good news about supplies generated by wind- and water power (click here).
But no matter how much the power providers belly-ache, the decision looks likely to stick.
Says tabloid Correio da Manhã, the government will only reintroduce the subsidy “in extreme conditions which affect the production of energy, for example extreme drought”.
Endesa’s president Nuno Ribeiro da Silva told Lusa it was only last year that the country was facing “conditions of extreme drought” – thus the decision, in his opinion, is precipitous and short-sighted.
“If there hadn’t been electrical power plants last year, we would all have had to resort to candlelight when there wasn’t water or wind”, he said, warning that “if there is no value given to the security of service given by power plants, no one will invest in new energy sources”.
natasha.donn@algarveresident.com
