Now that the vast subsidies, handed by taxpayers to Portugal electricity supplier, EDP, have been given a full airing in the media, parliament today approved the creation of a committee of inquiry to look into the matter most thoroughly.Between 2009 and 2012, taxpayers paying these CMEC support payments were providing a sum equal to one third of EDP's profits.
A year after the former minister Manuel Pinho was accused of corruption in the CMEC contract process, the issue at last has become political so the government must be seen to be doing something.
The new committee of inquiry wants to hear from those who were in charge of energy policy and these support payment negotiations during the governments of Pedro Santana Lopes, José Sócrates, Pedro Passos Coelho and António Costa.
The Left Bloc has proposed that this committee should operate for 120 days and determine, among other things, "the existence of favouritism by governments regarding EDP in the case of CMECs.” This will be an easy one to answer.
The Bloquistas also want the committee to determine the, "existence of corruption of administrative officials or political office holders with influence or power in the definition of these incomes." Again, unless the committee members have been shielded from the media in recent weeks, the answer already is pretty clear.
The Left Bloc points out that the cost of electricity has risen almost 50% since 2006 and that "the impact of these CMEC payments on households' energy bills is one of the main explanations for the high level of energy poverty in Portugal.” One way to ease this burden and stop politicians shedding crocodile tears, is to reduce the VAT rate of 23% on electricity to a more reasonable figure applicable to an 'essential item.'
EDP, currently the target of a takeover by the Chinese government, also has refused to pay an accumulated €250 million energy tax bill, while happily taking taxpayers’ cash in support payments.
