State payments to Endesa will be possible only after obtaining permission from the Secretary of State for Energy, Joao Galamba.
A statement from the office of Prime Minister António Costa said that the public services and the General Services of Public Administration should conduct market consultations, as it may be necessary to hire new service providers who have adequate commercial practices.
In the order, the Prime Minister emphasizes the duty of the state to protect the interests of taxpayers in the management of public funds in the face of “threats of speculative pricing practices that ENDESA will practice.”
In response to Endesa, António Costa also emphasizes that “in order to avoid interruption of services, required public services and ESAP should proceed with caution when consulting with the market due to the possible need to hire new service providers who adhere to good commercial practices.” .
The decision comes after This Monday, Endesa pledged to maintain negotiated prices until December and honor commitments set under the Iberian Mechanism, after the company’s president said electricity would rise by 40% this month.
“Endesa is committed to maintaining negotiated prices with its residential customers in Portugal until the end of the year,” reads a clarification released by the company this Monday.
According to the electric company, it will be about paying for the “gas brake”.
Secretary of State for Energy João Galamba told Luza that it was not possible to see a 40 percent increase in the electricity bill through the Iberian mechanism, citing commercial proposals from the companies themselves.
“Contrary to what President Endesa said, there is no 40% increase. If you are talking about commercial proposals from the company itself, only the president himself can say this,” Joao Galamba said on Sunday.
Thus, as he noted, linking the price increase with the mechanism “does not make sense, it is impossible.”
Author: morning Post
Source: CM Jornal