A new scandal shakes the Ministry of Industry. The report of one of the independent consultants hired by Industry to calculate the remuneration for renewable was delivered months after the cut was approved and published in the BOE. The other, the Boston Consulting Group study was not even used. So based on what measures were they calculated?
For months now, all associations, companies and producers of renewables, even the Congress were demanding Industria to share the reports from independent consultants Roland Berger and Boston Consulting Group, who allegedly had calculated parameters for the new remuneration to renewable and there was no way to get them.
Therefore, they had to resort through the courts. And until the Supreme Court has not forced Industry to make them available the mess behind it has not been uncovered. According to newspaper El País, “the report by consultancy Roland Berger is dated three months after the cut (3,000 million according to associations) was published in the Official Gazette. The other report by Boston Consulting Group has not even been used and the contract was terminated in January this year for “repeated breaches” of the company. “
Chronology of a scandal
In July 2013, Industry hired two independent consultants to calculate what the real costs of renewables, waste and cogeneration were by type of technology and how much they could be trimmed. Its aim was to reorganize the sector and agree on a reasonable and ‘fair’ return for the different technologies but it actually resulted in dramatic cuts to the incentives they received, which provoked a persistent reaction of the entire sector.
In November of that year, the Minister of Industry, José Manuel Soria, said the energy reform was ready except for these reports. “It only remains that the external consultants deliver us the final report of the standard costs on the base of which the new incentives to investment for renewable energy are to be applied,” he said.
Both the Royal Decree 413/2014, of 6 June, regulating the activity of electric energy production from renewable sources, cogeneration and waste as the Order IET / 1045/2014, of 16 June, by which the compensation parameters of the standard facilities applicable to certain electricity production facilities from renewable, cogeneration and waste sources are approved were approved in the same month.
However, now the fact that one of the reports was delivered more than three months after the approval of both regulations and the other was not even used is uncovered.
So on what basis have those cuts been approved? Might it be that the calculations being done by these independent companies were not welcome by Industry? Who stepped forward and calculated them instead?
According to measures of organization of procedure submitted to the parties by the Supreme, the documentation presented by Industry consists of 3 DVD which due to their size, have been uploaded on a server of the Ministry for online access by the concerned parties.
Among the material submitted, a note from the Institute for Diversification and Saving of Energy (IDAE) of last February 25 explains that on February 11 the contract with BCG was terminated due to “breaches” by the consultant.
Renewable Companies now have open doors to justify their claims after the Supreme Court transmitted the Ministry of Industry’s controversial reports to them.
With these new revelations, the demands of foreign companies and investors in international arbitration courts and judicial proceedings filed by Spanish producers of clean energy can see the light of success. Also, interestingly, although the contract with Roland and Boston included the obligation of both to support the State in potential lawsuits in the defense of the reports results they can now help precisely to ensure that Industry is punished in court