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Electric companies fall on the Stock Exchange due to the Government's plan to cut excess remuneration and lower the electricity bill

Electric companies suffer on the stock market. Endesa and Iberdrola fall hard on the floor dragged by the Government's intention to curb the excess remuneration of electricity companies and thus lower the price of electricity. This explains the decline of more than 5% in Endesa and more than 2% in Acciona and Iberdrola. These signatures, in addition, have led the Ibex to the red, which closed the session with a drop of eight tenths. Energies of Portugal (EDP) has also suffered in the Portuguese market and leaves 1.53%.

More informationThe escalation of CO₂ rights heats up the European electricity billThe Government launches a mechanism to curb the excess payment of electricity companies and lower the price of electricityThe keys to the new electricity bill that comes into force on June 1

The punishment is based on the intention of the Executive to take a draft law to the Council of Ministers on Tuesday with which they intend to curb the so-called benefits fallen from heaven, the excess remuneration that companies get for the electricity they generate with their nuclear and hydroelectric plants whose works are already amortized. This initiative of the department of the vice president Teresa Ribera comes in full escalation of electricity prices among the highest ever.

In this sense, the second vice president of the Government, Nadia Calviño, has advanced this Monday that the Executive will approve a law so that the price of CO₂ does not make electricity more expensive. “The Government is going to do everything possible so that we can move forward in the way we have done so far, with the progressive introduction of renewable energies without this implying an increase in the cost of electricity”, she assured in an interview in the COPE. This will be included in the project that will take this Tuesday to the Council of Ministers.

Las eléctricas caen en Bolsa por el plan del Gobierno para recortar el exceso de retribución y rebajar el recibo de la luz

The increase in the price of electricity is due to a mixture of factors —such as the price of gas or the rise in the cost of a ton of carbon dioxide—. Sources from the Ministry for the Ecological Transition maintain that their initiative seeks to "accompany industry and domestic consumers by avoiding an increase in the cost of the system that does not fully correspond to an increase in the real costs of the energy they consume." And from the Government they point out that the changes that will be made could mean that the bill is reduced by around 5%.

The focus is especially on nuclear and hydroelectric power plants. And these are owned in Spain by the large companies in the sector (Iberdrola, Endesa and Naturgy), as well as EDP and Acciona Energía to a lesser extent. Of these, only Naturgy has been able to weather the storm, although it also ended in red (-0.28%).

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The regulatory change, which has been long in coming, complies with the government pact between PSOE and Podemos, which established a clause with the commitment to implement "the necessary regulatory changes in relation to the operation of the electricity market to put an end to overpayment ( known as profits from the sky, windfall profit, in English) received in the wholesale market by certain technologies that were installed in a different regulatory framework, prior to liberalization, and that have more than recovered their investment costs”. In the previous crisis due to the rise in electricity prices, in January due to the Filomena storm, United We Can forcefully demanded that its partner apply what was agreed in 2019 for the formation of the Government.