Power utility PPC is facing pressure by RAE, the Regulatory Authority for Energy, to replace its CO2 emission rights price clause with a wholesale electricity price clause adopted by all rival suppliers.
PPC’s decision to activate, early in May, its CO2 emission rights clause in response to rallying CO2 emission right prices has prompted regulatory issues, the authority contends.
PPC was asked, late last month, to explain its decision, as part of a series of meetings organized by the authority with all suppliers.
RAE, demanding detailed data, is examining whether irregularities exist, the legality of these clauses, and if consumers have been misled.
Independent suppliers have also needed to explain their decisions to activate wholesale price clauses included in supply agreements. Like CO2 emission right prices, wholesale electricity price levels have also risen.
The authority has received numerous complaints by consumers over costlier electricity bills.
PPC’s low-voltage power bills have risen by levels of between two and three euros since its activation of the CO2-related clause.
Though PPC, the dominant retail player, was the last to activate its clause, it was the first to be summoned by RAE.
CO2 emission right prices have persisted at elevated levels of over 52 euros per ton in recent times, peaking with a record high of 56.65 euros per ton on May 14, before easing slightly in recent days. CO2 emission right prices dropped to 50.14 euros per ton yesterday.