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Electricity on Tuesday in Portugal and Spain rose by 35% – Energy

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Electricity on Tuesday in Portugal and Spain rose by 35% - Energy

Electricity in Portugal and Spain will rise 35% on Tuesday, to an average price of 365.33 euros per MWh, the highest since March 10, days after the Russian invasion of Ukraine, and the sixth highest ever, according to data. official data.

This increase already takes into account the Iberian mechanism, which came into force on June 15 after the agreement of Portugal and Spain with the European Commission and sets the maximum price for gas used by energy companies for electricity generation (from 40 euros per MWh, despite the fact that in European markets it costs more than 280 euros per MWh for futures contracts).

This “brake” provides that electricity producers are compensated for the difference between the price of gas in the wholesale market and the price determined by the mechanism (adjustment cost), and the cost of this compensation is distributed among all consumers with contracts indexed to in the spot market or with contracts extended after 26 April.

In Spain, the range of consumers who have to pay for this adjustment cost of the mechanism is much larger than in Portugal. This is due to the fact that 40% of families still use the regulated tariff, which is also valid in the wholesale market with monthly updates. In Portugal, the government said that in July only 29% of consumers would pay to adjust the Iberian mechanism.

The average daily price that will be valid this Tuesday in the Iberian market (MIBEL) is 182.93 euros per MWh, to which is added the cost of the adjustment, which is 182.40 euros. The final cost is therefore €365.33, with setup costs accounting for almost half of that amount.

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Despite a 35 percent increase in electricity prices in the Iberian Peninsula on Tuesday, according to the Iberian electricity and gas market operators (OMIE and Mibgas), consumers can pay even more, around 110 euros per MWh (476.77 euros). MWh) if it were not for the Iberian mechanism in place since 15 June.

In addition to rising gas prices, exacerbated by the impact of the war in Ukraine, which began on February 24 with a Russian military invasion, more gas is being used for electricity this year due to a drought that has reduced water supply capacity. stored in dams and can be used for energy production.

According to the latest data from the Spanish government, the storage of water in Spanish reservoirs is 37.9% of the total capacity, the lowest level since 1995.

Between January 1 and August 15, Spanish hydroelectric production was the lowest since 1992 and was half the annual average for those months of the year.

Last year, for example, Spanish hydroelectric power plants generated twice as much energy as this year (22.6 thousand gigawatts per hour compared to 11.4 thousand this year), according to official figures published today by the newspaper El Pais.

Despite an increase in installed capacity to use renewable energy sources to generate electricity (such as solar power), the decline in hydroelectric power has been largely offset by the use of gas in combined cycle power plants.

However, in the past two weeks, Spain’s electricity consumption has been declining both compared to the same period in 2021 and in relation to previous weeks, which coincided with the entry into force of the “urgent” savings measures approved by the Spanish government. Government. .

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In the first week of this “climate shock plan for energy saving and energy efficiency” that ended on August 15, electricity consumption decreased by 3.7% compared to the previous week and by 1.8% compared to the same days in 2021.

According to data released today by the Spanish government, consumption fell 9.5% in the second week compared to the previous seven days and 8.6% compared to last year.

Measures taken in Spain to save energy include a commitment that air conditioning for cooling public, cultural or commercial spaces cannot be below 27 degrees. In addition, shop window lighting must be turned off at 22:00 and the same goes for the lighting of public buildings that are not in use at this time.

These measures were approved as part of an agreement between the countries of the European Union to achieve global energy savings of 15% between August 1 and March 31, 2023, compared to the average over the past five years over the same period, taking into account due to the threat of supply cuts. gas to Europe from Russia.

In the case of Spain, which, like Portugal, is less dependent on Russian gas than other EU countries, the savings are 7%.

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Economy

Economic situation ‘will get worse before it gets better’: IMF director warns

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Economic situation 'will get worse before it gets better': IMF director warns

Kristalina Georgieva admits that the war in Ukraine violated the forecasts of the International Monetary Fund

The Director General of the International Monetary Fund (IMF) said on Thursday that the global economic situation, aggravated rising inflation “it will still get worse before it gets better”, acknowledging that the invasion of Ukraine undermined the organization’s predictions.

Speaking at Georgetown University in Washington DC, Kristalina Georgieva said he thought the situation would “get worse before it gets better”.

“Uncertainty is very high,” he said, highlighting the effects of the war, noting that the pandemic “hasn’t gone away yet” and adding that “the risks associated with financial stability are growing.”

The IMF’s director-general said the organization had again lowered its forecasts for the global economy in 2023, projecting four billion euros of lower economic growth through 2026.

Georgieva also revealed that the institution had already cut its global growth forecast three times and now expects 3.2% this year and 2.9% in 2023.

The IMF Director General said that the situation could be resolved by three priorities for the economies, calling, firstly, for measures to reduce inflation, preventing it from “fixing” at current levels. However, these efforts must be balanced, he said, because otherwise they could plunge “many countries into a protracted recession.”

“Central banks must continue to respond,” he said, “even if the economy slows down.”

The second priority, Georgieva said, includes fiscal measures that protect “the most vulnerable families and businesses,” warning that these measures must be “very targeted” and urging countries “not to subsidize the rich.” The IMF Director General also warned of the negative effects of universal price controls.

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Finally, Georgieva stressed the importance of supporting emerging market and developing countries.

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Banco de Portugal is revisiting high inflation this year to 7.8%. The economy grows until the end of the year, but will stop in 2023

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Banco de Portugal is revisiting high inflation this year to 7.8%.  The economy grows until the end of the year, but will stop in 2023

The Bank of Portugal revised upwards by 1.9 percentage points (pp) its inflation forecast for this year to 7.8%, the highest since 1993, reflecting growing external pressure on prices.

In its October economic bulletin released today, the Bank of Portugal (BdP) predicts that the harmonized consumer price index will hit 7.8% this year. upward revision from 5.9% forecast in Junebut still below the eurozone.

The regulator explains that inflationary pressures remain high in the second half of the year despite some signs of easing, which it estimates will see the rate stay above 9% during this period, peaking in the third quarter (9.9%) . 5%) and slightly reduced by the end of the year.

On the economic front, the BdP improved its growth outlook by 0.4 percentage points this year. to 6.7%, signaling a recovery from pre-pandemic levels in the first quarter but a subsequent slowdown that will be reflected in 2023.

In the October Economic Bulletin, released today, the organization, led by Mario Centeno, presents only forecasts for this year, but points to the impact of the slowdown in economic growth for 2023 recorded from the second quarter onwards.

“The negative effects of Russian military aggression in Ukraine have intensified over the course of the year, which suggests a relative stabilization of activity from the second quarter onwards. These effects will be more pronounced in 2023, foreseeing a significant slowdown in growth compared to 2022, with a domino effect of over 3.9 p.p. [pontos percentuais] up to 0.5 p.p. ”, it can be read.

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However, for this year, the growth forecast for gross domestic product (GDP) has been revised upward by 0.4 percentage points. up 6.7% from June, with the Portuguese economy “benefiting from a recovery in tourism and private consumption”.

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Pilots offer TAP the same logic of fleet renewal to restore working conditions – Breaking News

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Pilots offer TAP the same logic of fleet renewal to restore working conditions - Breaking News

In a statement sent to members, to which Lusa had access, the Civil Aviation Pilots Union (SPAC) cites the adage “Caesar’s wife is not enough to be serious, she must look serious” to criticize the TAP option.

“Following the justification rationale from those who choose to purchase cars during this very challenging time, which is based on miraculous savings, we offer the same “spend more to save” logic to restore dignity. workers,” the union said in a statement.

This is the news, reported by TVI/CNN Portugal and Away portal, that TAP has ordered a new fleet of BMW cars for administration and managers, replacing Peugeot cars.

In the memo, SPAC emphasizes that “while some are undergoing brutal pay cuts, while layoffs are still ongoing and quality of life depends on others, at the same time, the fleet of leadership positions is being revamped.” arguing that “the existence of social justice is indispensable for the existence of social justice.”

In this context, he believes that the “new attitude” to “expenses” should affect pilots when working conditions are restored.

“If this does not happen, we will be very surprised and will be forced to believe in the hypothesis that the TAP administration either does not want to use financial surpluses to fairly replace the working conditions of workers, or there is no financial surplus and this renewal of the fleet was paid for by reducing the wages of workers,” the statement says.

TAP claims that the renewal of the fleet for the administration and managers saves 630 thousand euros annually, justifying that the decision was based on this consideration while respecting the contracts.

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“The Board wishes to clarify that TAP has a corporate fleet for administration and directors, which is in an operational ‘lease’ mode. With the option we have made, we are saving up to 630,000 euros annually if we kept the cars we have today,” TAP said in an internal statement, which Lusa had access to.

TAP justifies this by saying that 50 vehicles were at stake, for which a tender was held for the market, and six organizations were invited to participate in the Portuguese market.

“The offer with the lowest price has been selected, with a monthly income of 500 euros. For reference, other offers submitted by TAP with a more competitive cost included a monthly rent of 750 euros,” the company’s executive committee explained in a statement.

Also today, the National Union of Civil Aviation Flight Personnel (SNPVAC) said in a statement that Lusa had access to that the TAP fleet renewal causes “a lot of shame on the part of others”, given that if it is not a sign of willingness to raise crew salaries, it is “shameful » a management act.

The President of the Republic, Marcelo Rebelo de Sousa, also reacted to the news today, pointing out to the Portuguese airline a “problem of common sense”.

“I have already spoken about several public organizations in the past, about the distribution of dividends and about wages, and I understand that when you are in a difficult period, efforts must be made to set an example of containment,” Marcelo Rebelo de Sousa defended.

According to the President of the Republic, it is understandable that companies bear the costs, but he defended the need to “have common sense” when the country and the world are going through a “difficult period.”

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