Less than one week ago we published a story about consumers footing the bill for the natural gas storage company Castor, because Former Minister of Industry Miguel Sebastián signed an agreement that the company would be compensated if it ever fell.
After fulfilling this agreement, the Supreme Court is requiring the state to pay 1.4 billion euros more in interest that it will have to pay to Escal for Castor's closing. The current Minister of Industry, José Manuel Soria, was faced with a problem: how could he follow court orders without increasing the public deficit even more and infuriating taxpayers? The answer was not clear.
Still, in a resolution that outlines the terms by which he will follow the court's decision, Soria has found a loophole to keep consumers from paying the price for Castor's closing. If Soria can prove that there was fraud or negligence during the construction and exploration processes, the company will have to return the money it received for these activities. While difficult, this could be a fruitful option.
Miguel Sebastián signed a one-sided agreement to mitigate Castor's risk and put it on consumers. His successor will have to take on this burden, but consumers will actually end up paying. Future Ministers should not repeat this kind of behavior.
