We have to fight the big lobbies in the energy sector"

The Social Democratic Party’s vice president, Salvador Malheiro, has spoken out against the lobbying of big energy companies operating in Portugal and the resulting high costs that government and councils have been saddled with.

 

"In Portugal, we have to have the courage, the boldness and the firmness to look at this matter without giving in to commercial interests. I know that everyone should have tried to do this, but we must fight the big lobbies in the energy sector," said Malheiro, referring to the intestinally complex world of energy acquisition contracts (CAEs) and 'costs to maintain the contractual equilibrium' (CMEC).
 
"I think we should no longer be paying these amounts to EDP as regards the costs of maintaining the contractual balance. We should pay less and there should be the courage and the directness to try to solve the problem," said the opposition party vice-president.

 

Salvador Malheiro stressed that the former Secretary of State of the Government, when Pedro Passos Coelho was PM, "tried to speak, to negotiate, and failed."

 

Malheiro stressed that it is important to have "strong, resilient companies", said he was "very proud" of companies such as EDP and GALP, but said that it is necessary to "put Portugal's interest first and foremost."

 

The social democrat argued that the reality that justified this type of contractual income, no longer is evident.

 

About the energy acquisition contracts (CAEs), they said they were conceived "in good times" in the late 1980s and that the costs of maintaining the contractual equilibrium (CMEC), "were also set up with the best of intentions."

 

"The big question now is whether the reality of today justifies such a high return on these contracts and to realise that we all have to make a large effort to reduce our expenses,” said Malheiro, referring to the €300 million payable for energy maintenance contracts due to be paid out in 2018 alone.

 

In September last year, the energy regulator shocked the public by announcing that, according to its calculations, EDP has been paid €500 million in the last ten years in compensation payments

 

Under hugely complex calculations to compensate EDP for losing supply contracts, when it was sold off by the government, the Energy Services Regulatory Authority calculated that EDP is due to receive a further €154 million over the next 10 years. 

 

EDP rejected this calculation and claims it is due €950 million in compensation over the next decade, under the terms of the original agreement.

 

"EDP does not see any reason for the discrepancy between the figures presented and will analyse the report produced by the regulator as soon as it is made available and will take the decisions and measures it deems appropriate," sniffed EDP’s chief.

 

Whatever the final bill, consumers again have been stiffed with funding juicy compensation payments to a private company due to a clause in the EDP privatisation contract. The government crowed about its success in selling-off the national energy company, to a group of avaricious private investors, while burdening taxpayers with subsidy obligations.

 

Salvador Malheiro is right to state that these subsidies have been influenced by energy company lobbying. This has been facilitated by many former politicians ending up as directors of these companies, in recognition for ‘services rendered’ when in power.

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