FEDERACION ESPAÑOLA DE MUNICIPIOS Y PROVINCIAS

Released Order extending one year the deadline for municipalities to come to the free electricity market


The BOE issued today, dated December 29, 2010, the Order provides for the extension of one year, until December 31, 2011, for municipalities sign electricity supply contracts on the open market. The FEMP had requested this measure, given the problems in the case of the consistory, taking place in the application of Royal Decree 485/2009 which regulates the implementation of supply of last resort.




ITC/3353/2010 Order of 28 December, establishing the access fees from January 1, 2011 and the premium rates and special arrangements for facilities, contains a transitional provision which reads II following:
"Consumers connected at high voltage to December 31, 2010 are being provided by a retailer of last resort and the January 1, 2011 do not have a supply contract on the open market, provided they are not included in the exemption provided Article 3.3 of Royal Decree 485/2009 of 3 April, may continue to be supplied by the trader of last resort until December 31, 2011.
 
The price to be paid by these customers for electricity consumption per trader of last resort during this period will be according to the application of the turnover rate of last resort, TUR without application of the method of time discrimination, increased its terms to 20 per cent. "


As you may recall last July the decree took effect requiring the municipalities, among other clients with a contracted capacity above 10 kilowatts, to go to the free market and call for public tenders to renew their contracts. The FEMP had warned of the inability of many municipalities to contract power under the new conditions, in the absence of offers from marketers and, in some cases, the mandatory conditions that they require to compete for tenders.
In this situation, the FEMP requested at the time meetings with the distributors and the Ministry of Industry to reach a solution that addresses both the needs of municipalities and companies.

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