The Spanish energy sector is frantic about extra costs associated with the submarine gas storage company Castor, provoking ACS and its partner Escal. The unusual situation has caused the Spanish electric energy association, Unesa, and the gas association, Sedigas, to worry about rising costs of storage infrastructure after the Castor budget tripled from an original 500 million euros to 1.6 billion euros ultimately.
Both Unesa and Sedigas are dedicating significant resources to investigating allegations with the National Energy Commission (NEC), which is attempting to carry out a joint report of the entire sector in order to execute a budget for the Cabinet in an attempt to reform the energy sector. Companies under the aegis of Unesa and Sedigas cannot afford for gas-access tariffs (the regulated portion) to reach 8%, which could happen due to rising costs of storage infrastructure.
Sedigas explained to elEconomista that the sector wants to avoid increasing growing deficits in the gas industry that derive from rising regulatory costs. Presumably, Castor will goad the problem further. So they are asking the regulator to enact measures that can contain this problem and seek solutions.
Still, Sedigas highlights that because we are dealing with infrastructure that is necessary for the system to function, all costs should be examined. Further, costs should be justified on grounds that they will have a positive impact and investments should be justified as well.
Allegations against Unesa, which elEconomista has had access to, highlight the need to conduct an audit for facilities that cost more than industry standard. The objective of this measure is to assure that costs are assessed prudently and approved transparently.