EDP’s boss António Mexia says "It's not fair" that the ‘social tariff’ costs the electricity and gas supplier €40 million a year.
Complaining that the poorest in Portuguese society who are unable to afford EDP’s rates - among the highest in Europe - are costing his shareholders good money, Meixa made his complaint at a meeting in London.
The socialist government’s plan is to increase the number of people covered by the social tariff to one million which will cost €80 million a year, double the current rate.
As for the social tariff scheme itself, "Portugal is the only country that has adopted it. It's not fair," said the more than adequately remunerated Chief Executive at an investors meeting, omitting to mention that it is EDP's 'full fare' customers that in fact are supporting the poor, not the company.
António Mexia earned €2.1 million last year made up of performance related pay going back to 2014 and a deferred salary payment from 2012, boosted by an extraordinary bonus of €360,000 for "leadership qualities and strategic vision," but zero for 'empathy' as when it comes to EDP’s social role within Portuguese society, his whining will not be appreciated by indigent EDP customers or the left of centre government.
EDP have gone all European over the tariff as Brussels wants governments or ‘fellow consumers’ to pay the electricity suppliers for low cost electricity for the poorest in society, an idea wholeheartedly endorsed by Meixa and by fellow EDP director Miguel Stilwell de Andrade.
Both say the social tariff is a good idea, as long as EDP does not have to pay for it. The company is set to announce a €900 million profit for 2015 on a turnover of €3.6 billion, just to put things in persepctive.
"We like the idea of the social tariff, but liked the proposal from the European Commission,” and are "working for Portugal to adopt European philosophy and not the national philosophy," as this sould suit their shareholders far better.
There is a new social tariff regime, proposed by the Left Bloc and accepted by António Costa’s government, which take effect this July and provides for the automatic assignment of social tariffs to economically disadvantaged consumers.
The selection and definition of 'poor' until now has been left to EDP which has not exactly rushed at the job with enthusiasm, picking up a €7.5 million fine from the regulator for deliberate delays that have left many customers unable to afford a supply andthus disconnected.
The scheme currently provides discounted electricity and gas to just 140,000 poorly off consumers in Portugal, when many more qualify.
This figure is far from the target of 500,000 consumers that the government wanted to see supported and nowhere near the new proposed figure of 1 million of the nation's poorest.
