Calls to review electricity tariffs and support bills for the poor and vulnerable groups

Agadir 24 | Agadir24

The Competition Council issued its report on the state of competition in the electricity sector and the prospects for its development, through which it called for establishing a mechanism to adjust the tariff on a periodic basis and in a way that reflects the true cost of electricity in a way that protects the purchasing power of vulnerable residents.

In this context, the Council proposed state intervention either by implementing a social tariff in the tariff structure or providing direct financial assistance to vulnerable groups, stressing that “it is not possible to evaluate the financial position of the office and improve transparency in the national electricity market without reconsidering the current tariff setting system.”

The Rahu Council considered that the current tariff system “is characterized by a fixed nature that does not reflect the real price cost, and is based on a mechanism of equalization of mutual subsidies between segments of consumption, and even between activities (subsidizing water with electricity).”

According to the same source, applying the model based on the transparency of the price-setting methodology, supported by clear procedures for reviewing it, is of great importance for achieving the goals of market reform and encouraging the rationalization of electricity use.

According to the Competition Council report, the targeted tariff model must reflect the real costs of producing a kilowatt hour of electricity, in a way that enables the initial costs to be passed on to the final consumer. It must also take into account the economic and social concerns of various consumers, in a way that will enable companies to maintain competitiveness and maintain capacity. Purchasing for fragile families.

Proposals

The Competition Council called on the state to approve the gradual implementation of the tariff model in which prices are measured at the cost price in order to compensate for the services provided, and to develop mechanisms for targeted support to compensate for the difference between the cost price and the selling tariff, directed to segments of consumption that require state intervention and support (by deleting the parity system between segments). Consumption).

The Council believes that public authorities can intervene in this last point in two different ways, either by applying a social tariff within the tariff structure, or providing direct financial assistance to vulnerable groups.

The report indicated that the population to be supported can be identified based on the unified social register, and it can also be identified based on levels of electricity consumption, meaning that “only families whose consumption is less than 15 kilowatt-hours per month, that is, those located between… The first and second parts, taking into account the collective meters.”

Positive benefits and advantages

The Competition Council believes that adopting the aforementioned proposal will provide multiple benefits, including directing aid to the targeted population instead of providing product-related subsidies, in addition to providing flexibility in reviewing the arrangement of families in the eligibility criteria network on a periodic basis, according to the monthly electricity bill.

The Council recommended, in the event that the public authorities decided to interfere in the structure of setting the tariff, by establishing a social tariff, that the National Electricity Regulatory Authority be involved in setting the tariff, which would first be done by a decision of the head of government or the governmental authority delegated by him, as is currently the case. Then, establish a mechanism to review definitions periodically and frequently.