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ENERGY

Fresh calls for Spain-France gas pipeline to be put back ‘on the table’

French gas network operator Terega wants to revive a pipeline project between Spain and France, its CEO said Thursday, as the EU seeks to cut the bloc's reliance on Russian energy supplies.

Fresh calls for Spain-France gas pipeline to be put back 'on the table'
According to Terega, the existing gas connection between France and Spain is already often running at full capacity. (Photo by Nikolay DOYCHINOV / AFP)

“We will propose in the coming weeks that north-south projects be put back on the table,” Terega CEO Dominique Mockly told a press conference.

Terega, which manages the gas network in southwestern France, received an unfavourable opinion from French and Spanish energy regulators on a new gas line across the Pyrenees in 2019.

The proposal, called Step, was to be a precursor to a larger project called MidCat (Midi-Catalonia).

At the time, it was considered costly and unneeded, and faced criticism from environmental groups.

But European Commission President Ursula von der Leyen, who has put forward a major plan to make the continent independent of Russian energy, said last month that MidCat was “crucial” for “reducing our dependence on Russian fossil fuels”.

READ ALSO: How war in Ukraine is reviving France-Spain MidCat gas pipeline project

Spain has significant capacity to import liquefied natural gas, which could then flow more easily to northern Europe.

“In the current crisis, we cannot allow ourselves to say we are going to pass over these capacities and not look at them,” Mockly said.

According to Terega, the existing gas connection between France and Spain is already often running at full capacity — and the flow, which normally runs north to south, has switched since Russia’s invasion of Ukraine.

Mockly said the infrastructure could be “scaled up afterwards to move to hydrogen”.

But the French regulator had reservations on Wednesday.

Jean-Francois Carenco, chairman of the French Energy Regulatory Commission (CRE), said the pipeline would “come into force in 2030 at best” and noted the “development of LNG terminals in northern Europe, the smooth operation of our gas terminals, and the cost”.

READ MORE: Is Spain ready to be the EU’s main natural gas supplier?

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PROPERTY

End of home visits as gas meters go digital in Spain

Soon you may not have to worry about people coming inside your home to read your gas meter in Spain, as 5.7 million analogue versions are being replaced by smart ones. Here's everything you need to know.

End of home visits as gas meters go digital in Spain

The sound of someone ringing your bell and shouting “gas” through the intercom or coming into your apartment building and calling out through the stairwells is commonplace in Spain.

No, they’re not warning people of a gas leak, they have of course come to read your meter, el contador de gas in Spanish. The good news is that this may soon come to an end, and you’ll no longer have to let strangers into your house to look up how much you’ve used, it will simply be sent digitally.

This will mean greater privacy and security, as according to the National Markets and Competition Commission (CNMC), almost half of domestic natural gas meters are located inside people’s homes.

The replacement is expected to affect a total of 5.7 million devices across the country and the transition will be carried out progressively until 2028.

On April 4th, the Regulatory Supervision Chamber of the CNMC approved a resolution in which it outlined rental prices for future smart natural gas meters for ‘small’ customers.

It defined ‘small’ as those households or businesses connected to networks with a pressure lower than 4 bars and a consumption of less than 50,000 kWh per year.

The CNMC report stated that the cost of changing the analogue equipment for smart counters wouldn’t cost the customer anything, but that they would have to pay €1.10 per month in order to rent it. This will be equivalent to €13.22 per year.

The only time someone may have to come to your home is once every 10 years in order to replace the battery.

The replacement will be linked to the expiration date of the useful life of the devices, which is set at 20 years.

The replacement of gas meters with smart meters has been studied by the CNMC for more than 10 years, during which time the organisation has been preparing various reports on the costs and benefits.

According to El País, its first report dates back to 2011, where it highlighted a conservative strategy by concluding that it was necessary to wait for the implementation of smart gas meters in other countries and see the results.

The CNMC has been insisting for years that the replacement of meters was not profitable for the system, especially for consumers, since current regulations require that the costs be passed on, a factor that caused the transition to be paused for many years.

Finally in 2021, they changed their minds, because according to their analysis, the cost-benefit of the operation became positive, since the analogue meters that were going to end their useful life span also had to be replaced. According to the distributors, 72 percent of the meters had exceeded their useful life in 2020 or were going to exceed it before 2028.

The calculation of savings from remote reading by distributors will be about €2.40 per year.

The same thing happened in Spain with electricity meters, when they switched to digital ones, however the transition process took more than a decade due to the fact there were more than 30 million supply points throughout the country.

In the case of natural gas, it has been the distribution companies that have requested a change in equipment for smart meters.

As natural gas has fixed prices in the free and regulated markets, it does not have the same advantages in terms of the transition, as electricity does, where wholesale market prices fluctuate hourly.

In Europe, 6 out of 10 gas meters are already digital.

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