The CEO of Endesa, José Bogas, has asked this Wednesday that the new structure of the electricity rate scheduled for next April 1 “be implemented well” and has predicted that its start-up will be postponed again. “I think we will be closer to summer than April.”
Iberdrola and Endesa earn more than 5,000 million despite the coronavirus and increase their profits by 36%
In a telematic press conference to present the results of 2020, Bogas has defended the benefits of this new rate, but has warned that putting it into operation “will take a while” because “many things need to change” from a technical point of view .
In June, the National Commission of Markets and Competition (CNMC) already postponed until April 1 the period available to distributors and marketers to adapt their equipment, IT systems and contracts to the new toll structure, whose most change Relevant for the user will be to implement three daily billing periods (peak, flat and valley) that will notably reduce the cost of hiring additional power in off-peak hours to electrify demand, “rationalizing”, in the words of Bogas, the allocation of the so-called charges and costs of the electrical system.
Endesa’s chief executive has ruled out an IPO of Endesa’s green business because in the long term it will be “completely” renewable. And he has lashed out at “some, few” operators who have fed a “bubble” in that sector and who, he said, are “people who try to extract value and not create it.” “All those of us who have a long way in the energy sector and have a vocation of permanence in the future of course want to extract value, but creating value”, with “gradual extractions of value over time”.
Bogas has acknowledged that he has been “surprised” by the average price that the January renewable power auction in Spain has thrown, 25 euros per megawatt / hour, which will offer “very tight” returns to developers. That price is “great news” for the electricity consumer, “the main beneficiary”, but it exceeds the numbers that Endesa had made, which was awarded 50 megawatts (MW) after submitting 1,200 MW to the bid.
The executive has once again charged against the, in his opinion, excessive fiscal burden of nuclear power plants, which he has asked to review in order to comply with the gradual closure schedule between 2027-2035 agreed by the electricity companies with the Government. Bogas, who has come to describe the new Catalan nuclear rate as “allegal”, has denied that it is a “threat” of closure because “things are settled by talking and negotiating” and “this Government has shown an excellent capacity for dialogue ”. According to their accounts, the plants need a minimum price in the electricity wholesale market of 45 euros per MWh, far from the less than 34 euros that it marked on average in 2020 due to the coronavirus crisis. This year, the average price of the pool at the moment slightly exceeds 45 euros.
Bogas has apologized for the overlapping of calls from companies in the electricity sector (Endesa, Iberdrola and Red Eléctrica have presented results on the same day), which has led to a formal complaint from the Association of Economic Information Journalists (APIE). And he has trusted that the advance of 27,000 million in investments for European projects included in the General State Budgets, “a very courageous bet of the Spanish Government”, can allow the projects to begin to be executed earlier. Endesa has proposed 110 initiatives with a total investment of 23,000 million.