EDP sells 51.3% of its tariff deficit for €1.1Bn

 In EDP, Energy, News

EDP has agreed to sell 51.3% of its tariff deficit for 2024 for €1.1Bn.

In recent years electricity tariff deficits have emerged in Spain, Portugal, Greece and in some other Member States. Tariff deficits are shortfalls of revenues in the electricity system, which arise when the tariffs for the regulated components of the retail electricity price are set below the corresponding costs borne by the energy companies like EDP.
The sale, done through the regulated market commercialiser, SU Electricidade – held 100% by EDP – should proceed in three individual transactions, states a notice on the market regulator’s web site.
“This tariff deficit has resulted from a deferment for five years from clawing back the difference in cost to be supported by the SU in 2024, including adjustments in the two previous years (2022 and 2023)”, states EDP in the same note. These adjustments are related to the purchase of electricity from producers that benefit from guaranteed payment regimes or other subsidised regimes.
At the start of the week, EDP closed the sale of €898 million of tariff deficit for 2024 to Tagus – Sociedade de Titularização de Créditos, according to the company in a communiqué.
According to the energy regulator in October, the value of the tariff debt increased from €1.7Bn to an amount of €1.9Bn.

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