Uncertainty of the rule of law: Spain’s “trademark”

2013 ended with a scandal that epitomised this agitated year: the CESUR auction with bidding at top prices and the government cancelling it, supposedly for “manipulation” which the CNMC has not been able to explain. The electricity companies are pulling their hair out and demanding the legal certainty be respected. And they are right; the legal certainty is what is needed if this country is to continue to be viewed as an attractive destination for energy investments, so that it can move onwards towards a sustainable energy model for the future.

The year that is over could have been the year of the great electricity reform that our country needs. The government should have conducted a structural review of the electricity system, one which faced up to the serious problem of the tariff deficit in a consensus with the entire sector, listening to the relevant regulatory bodies and respecting the rule of law as it affected investors.

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That way we could have carried on making progress towards a smart, effective and sustainable energy model, one which allows us to reduce the onerous foreign energy dependency that weighs our economy down, thirty points higher than the European average, a model that controls our impact on climate change at the same time as it supports the competitivity of our companies, something which would inevitably translate into a better offer for consumers, with better financial and environmental conditions.

Article published in: FuturENERGY January-February 2014