The five major Spanish electricity and gas companies – Engas, Red Eléctrica, Naturgy, Endesa and Iberdrola – accumulate a loss of more than 6,510 million euros of capitalization on the stock exchange following the announcement of the National Commission of Markets and Competition (CNMC) to cut the compensation they receive for the transportation and distribution of gas and electricity.
Since Thursday of last week certain information appeared in the press speculating on this possible cut unleash a fall in the price of the shares of all of them that has been extended until the close of market on Friday, the market capitalization of these five large companies it has been reduced by more than 6.510 million euros.
Although, in general, the collapse of the price of its shares has softened in the last week, since in just two days – on Thursday and Friday of last week – they lost 4,400 million euros, compared to 2,110 million lost in the last five days, all of them have continued to record rebates on the price of their titles since Monday.
Enagás drops 20% on the stock market
In percentage terms, the company most affected by the proposal of the CNMC has been Enagás, which already accumulates Collapse of 20% in the last seven trading days. Specifically, if the Competition circular materializes before January 1, 2021, the initial remuneration of investments in gas transportation and regasification, a measure that mainly affects Enagás, will be cut by 21.8%.
Given this situation, Enagás, which has a total capitalization of 4,574 million euros, has left more than 1,000 million euros in the market since last Thursday. This Friday, their titles fell another 0.60%.
Naturgy yields about 2,200 million
The second company that has been most affected by the publication of these circulars has been Naturgy, which on Wednesday announced a temporary stoppage of the investments of its gas distribution subsidiary Nedgia while analyzing the impact that the measure will have.
Although this Friday its titles bounced 0.53%, Naturgy accumulates a fall of 9.3% since last Thursday, which translates into a loss of more than 2,183 million euros on its total capitalization of 22,655 million euros. Competition raises a 17.8% reduction in gas distribution.
For REE, the proposal is "discriminatory"
For its part, the reduction proposed to the remuneration of 8.2% electricity transport has caused REE shares have sunk by 7.2% in the last seven days, after this Friday has regressed another 0.17% on the stock market.
This translates into a loss of 725 million euros. This week, its president, Jordi Sevilla, has conveyed that the proposal of the CNMC neither cheapens the service nor contributes greater efficiency to the system, at the same time that a report of the company considers that it contributes uncertainty and is discriminatory.
A lower cut for Endesa and Iberdrola
For its part, the lower proposed 7% cut in electricity distribution, which mainly affects Endesa and Iberdrola, has affected to a lesser extent these two companies, which this Friday closed with decreases of 0.88% and 0.49%, respectively.
Over the last seven days of the market, Endesa almost 1,000 million euros have been left in the market, 3.9% of what was capitalized at the close of the market on Wednesday, July 3 (24,840 million), while Iberdrola lost 1,542 million, or 2.8%, although it is the company that capitalizes the most (53,350 million) .
The gasistas pose the judicial route
Faced with this situation, the gas companies affected by this possible regulatory change plan to take the CNMC before the Spanish courts if the cut materializes, because they believe that "the investments necessary to advance the energy transition and decarbonization would be put at risk. "
For its part, the CNMC believes that this new criterion will allow a reduction in tolls paid by consumers through the energy bill, which will mean a reduction in the same, at the same time guaranteeing a "reasonable" return for companies. regulated.
In addition, for the regulator this change does not come as a surprise, since it has insisted that a response is given to a criterion that it had been maintaining for the last six years that "excessive" profitability was being granted, especially in the gas, where there has been less investment.
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