Citizens and predominantly the Electric Power Company (EPCG) have so far paid a total of 333 million euros to privileged producers for the purchase of their production, while the company, after delivering the same energy to citizens, only generates around 140 million euros in revenue, EPCG announced.
The company said that the contractual arrangement, established by the Democratic Party of Socialists, for the Možura wind farm (WP), remains in force until the end of 2031, which means that EPCG and citizens will continue to purchase electricity at prices approximately twice as high as those at which the same energy is delivered to end consumers.
In response to the DPS statement regarding the system for encouraging renewable energy sources, EPCG said that it is necessary to present complete and accurate facts to the public, and not selectively extracted data that lead to wrong conclusions.
Citing key data on the Možura wind farm, they stated that the total production is 753.503 megawatt hours (MWh), and that the total payment to the Možura wind farm was 72.336.258 euros.
"The average purchase price is around 96 EUR/MWh, and the value of the same energy according to the price for citizens: 33.779.822,11 euros," the statement says.
It is stated that the average value for citizens is around 44,83 to 45 euros per MWh.
"Difference consumers - Možura wind farm: -38.556.435,85 euros. The value of the same energy according to HUPX is 93.933.951,52 euros. Difference HUPX - Možura wind farm: +21.597.693,56 euros. Difference HUPX - Možura wind farm without 2022: around -1.407.067,53 euros," the statement added.
EPCG said that when talking about the Možura wind farm, it is crucial to point out that, according to available data, a total of 72.336.258 euros were paid for 753.503 MWh of electricity, which means an average price of approximately 96 euros per MWh.
"At the same time, the value of the same amount of energy at the price at which it was delivered to citizens is 33.779.822,11 euros, or approximately 44,83 to 45 euros per MWh. On that basis alone, the difference exceeds 38,5 million euros to the detriment of the public system," EPCG said.
The response emphasizes that it is therefore incorrect and manipulative to ask why citizens pay subsidies "if the market provides sufficient value", while simultaneously ignoring the fact that EPCG did not purchase this energy for stock exchange trading, but for the sake of stable and secure supply to domestic consumers.
"For the electricity system, the difference between the purchase price and the price at which energy is delivered to citizens is crucial, not selectively allocated stock market maximums," EPCG emphasized.
As they stated, referring to HUPX represents a particularly selective approach.
"Although the total difference between HUPX and VE Možura amounts to EUR 21.597.693,56, almost the entire positive effect comes from the extreme year 2022, when a result of around EUR 23 million was recorded. When that year is excluded, the total difference amounts to approximately -1,4 million euros," the response added.
It is stated that this is not a stable market model, but a one-time market disruption that is being attempted to be presented as the rule.
"In addition, it is important to emphasize that privileged producers, including the Možura wind farm, have always had the option to opt for the market model and direct sales of electricity. They did not choose such an option, because guaranteed purchase and guaranteed price represented a safer and more profitable model than assuming full market risk," the response says.
It is emphasized that it is therefore unacceptable and unfounded to refer to market prices today during periods of their growth, while in periods of lower prices all risk was transferred to the electricity system and citizens.
"You cannot discount market risk and then only call on the market when it suits you," the response reads.
EPCG stated that the essence of the problem is clear - the model established by DPS protected privileged producers for years, while EPCG and citizens bore the financial burden of such a system.
"In the case of the Možura wind farm, electricity was paid for at a price more than twice the value at which it was delivered to citizens. This is not a market principle, but a systemic transfer of costs to the public sector and end consumers," EPCG said.
They said that they remain open to all legal, sustainable and responsible solutions that will contribute to relieving citizens and reducing the costs of the electricity system.
EPCG emphasized that they will not accept attempts to selectively interpret data to conceal responsibility for a model that has produced long-term financial consequences.
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