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What is CMEC?
CMEC is the abbreviation of maintenance cost of contractual equilibrium. It is a remuneration paid to energy producing companies, acting as a kind of insurance to offset the company's income from the sale of energy in conditions normal market. The cost – which is already 2.5 billion euros – is charged to taxpayers through the electricity bill
Why were the PPPs created?
The Minister of Industry and Energy of the time, Mira Amaral, who is heard today in the parliamentary inquiry commission on income of energy, explained it in several opinion articles. According to the former leader and former president of BIC Bank (who bought BPN), "in 1987, upon arriving at the Ministry of Industry and Energy, I found myself faced with a EDP public company in very difficult financial situation and distribution networks with poor quality of service (…) It was not advisable to simultaneously invest in production and distribution I decided to invest in distribution networks and created the Energy Acquisition Contracts (EAC) figure, attracting private capital for production PPAs were also applied to electronic data processing plants already in the Guterres government , without any rate increases since the fixed and variable costs recorded for these plants were included in the Pego factory's CAE format.These contracts helped to increase the value of the company, including the prime The first phase of privatization began in 1997, when the state put 30% of energy on the market.
How did the CMECs emerge? (CAE) negotiated by Luís Mira Amaral. After being banned by the European directive on the liberalization of energy in 2003 (demanding an "efficient, free and competitive market"), a new compensation scheme, defined in 2004 (Government of Durão Barroso) , was to be created. was closed and began to be implemented in 2007, with Manuel Pinho as Minister of Economy José Sócrates (a contractual amendment that is currently under investigation for suspicion of passive and active bribery and corruption). economic participation in business).
Does the state win with these contracts?
EPAs and CMECs gave money to the state. When the state began privatizing EDP in 1997, it privatized it with this contractual structure that valued the company. In each of the six phases of selling EDP to an individual, valuations relied on this factor for the definition of the selling price. According to the Business, the state earned, between 1997 and 2013, 3.6 billion euros with the PPPs / CMEC established with EDP – the value corresponds to a slice greater than one third of what the caisses public sale of EDP. In other words, 37% of the almost 10 billion euros that EDP sold to the state are attributable to the valuation of these contracts.
What do these contracts represent for EDP?
These contracts correspond to gains in electricity. According to a study by experts from the University of Cambridge, sponsored by the government, to renegotiate these rents – intended to offset the electricity they would receive for the sale of energy produced in the United States. They operated in a purely competitive market (it is recalled that the liberalization of the energy market took place progressively between 1995 and 2006) – the actual nominal profitability of these contracts was 14,2%, above 7.55% of the opportunity cost of capital considered in a government decision
The government wants to renegotiate them and the Left Bloc ends with them, but these contracts are in effect until 39, in 2027, the initial date for the PPAs. Since 2014, however, the validity – and consequently the rent paid for electricity – of CMECs for several plants covered by these contracts has ended. Currently, the dams of Castelo de Bode, Cabril, Alto Rabagão, Caniçada, Bouça, Salamonde, Picote, Miranda and Bemposta (representing a large part of the installed capacity of the 26 hydropower plants guaranteed by these offsets) which means that they receive only the normal income from the energy market sale they produce
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