The Spanish Council of Ministers has presented a draft law to create a National Fund for the Sustainability of the Electric System (FNSSE), which would support the costs associated with the specific remuneration regime for renewables, cogeneration and waste (RECORE). The FNSSE is expected to avoid electricity price increases, to give clear signs of electrification of the economy, and to provide the certainty, sustainability and balance to the system to boost investments.
This fund will be managed by the Institute for Diversification and Saving of Energy (IDAE) and will be financed by a contribution paid by all energy supply companies (gas and electricity trading companies, wholesale oil product operators, wholesale LPG operators, and major and direct consumers of those products), based on their energy sales, by tax revenues and by the income from CO2 auctions. It may be complemented with resources from community funds.
It will replace gradually (over a 5-year period) the fixed charges of the electricity systems inlcuded in the access tolls of electricity bills. The cost of financing RECORE will no longer be part of the electricity bill paid directly by consumers. In 2019, the cost of renewable subsidies reached €7.2bn in 2019, accounting for around 16% of household bills. The government expects to lower electricity bills by 13% thanks to this measure, which will also include provisions to fight energy poverty.
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