The director general of FEDA, Silvia Calvohe assured yesterday during the interview with ” target=”_blank”>Let’s talk about it, from Diari TVthat the rise in energy costs resulting from the conflict withIran and the tension in the Near East will not be transferred directly to the electricity rates of Andorra. Calvón he pointed out that the company works with hedges that allow to cushion the volatility of the markets and pointed out that, facing the 2027the maximum increase that is proposed is that ofIPC “The consumer will not see the impact of this very complicated context that we have in the international arena”, he said.
The person responsible for FAITH explained that approximately half of the energy that the company buys is covered at stable prices, with a percentage that in some contracts with Spain approaches the 60%. This protection, added to the own hydroelectric production, allows a FAITH disconnect a significant part of the purchases from the daily swings. “We have the energy covered, in any case, almost more than one 50%“, he pointed out, before adding that this gives “peace of mind” in the face of a complicated autumn and winter in the European markets.
A la carte
“The consumer will not be affected in the context we have in the international arena”
Calvón he recalled that the current situation is not comparable with the crisis caused by the Ukraine warwhen FAITH came to assume negative results from ones 20 million euros before gradually passing on the increases. Now, he insisted, the company has more room. The annual purchase of energy represents approximately 50 million euros and FAITH plans to absorb a part of the possible increases without transferring them automatically to the receipt.
“(Rate increases) At most it will be from the CPI and we’ll see if we can make any adjustments”
The definitive tariff proposal will be made in December and must be approved by Government. Calvón indicated that the 2027 budget has been produced with an update equivalent to theIPCbut left the door open to adjust it. “I think that at the most it will be from theIPC and we’ll see if we can make some adjustments,” he explained. He also considered the possibility that inflation will moderate in principality before the end of this year.
Ambitious projects
Beyond the fees, the director general placed the new interconnection with Spain and the future ETR among the main strategic investments of FAITH. The set of the line, the transformer station and the annexed connections will assume between 70 and 75 million euros and has a completion horizon of 2029. Excavations at the border have already been completed, the work and transformers have been awarded and work has begun. The new infrastructure will make it possible to double or almost triple the electricity input capacity fromSpain and give more room to the growth of demand. Calvón he linked this need to the electrification of mobility, heating and new economic activities. “We must be able to ensure that Andorran society can be electrified”, he defended.
Calvón also referred to the expansion of theHospital stationa long-term project that FAITH work with EDF and that it could be available towards the 2032. The infrastructure would allow more energy to be available in the winter and at peak times, when demand and prices are higher. The director compared it to the fact of “to have a new hydroelectric plant“, with a perspective of use of up to 60 years. The cost is not yet closed. The technical preliminary project must allow to have a more adjusted estimate in the middle 2027when the definitive participation in the project will have to be decided. Calvón pointed out that Andorra would assume about one 40% of the investment. For FAITH the project would strengthen the diversification of energy sources and act as a new hedge in the long term.
Security of supply is another central pillar for the director. FAITH tries to maintain a balance between imports of France i Spain and take advantage of two different energy systems: the French, with a significant weight of nuclear, and the Spanish, more oriented towards renewables. Calvón explained that since his arrival at the directorate there have been “two or three” episodes in which one of the two countries has asked Andorra connect temporarily to the other system due to own incidents. “No one notices”, he remarked, because the changes are made with foresight and without affecting the user.
Stable contracts also have staggered maturities. with France there are up to 2029while with Spain some end the 2027the 2028 or the 2030. The will of FAITH is to renew them “progressively” and take advantage of the most favorable moments in the market to maintain competitive costs.
THE KEYS
- THE CHARGE WILL NOT BE TRANSFERRED TO THE RECEIPT. FAITH foresees that the energy tension derived from the conflict with the Near East will not have an immediate impact on consumers. The increase in fees 2027 it would be, at most, equivalent to the CPI.
- FEDA HAS COVERED A LOT OF ENERGY. The company has about half of its energy contracted at stable prices, which allows it to protect itself from market volatility. The annual purchase is close to 50 million euros.
- THE CONNECTION WITH SPAIN WILL BE STRENGTHENED. The interconnection with Spainthe new ETR and the attached lines will mobilize between 70 and 75 million euros. The project will triple the electricity input capacity.
- MORE WINTER COVERAGE TOWARDS 2023. The expansion of theHospital station it will allow more energy to be available in the months of greatest demand. It is expected to have a more precise economic estimate on 2027.
