Cepsa, the new player who hopes to grab 10% of Spain’s electricity market tart

CepsaCepsa

The oil company Cepsa is on the lookout for new markets. In fact the company has recently broken into the renewables market and will start operations at its first wind farm in Cadiz. Now it wants to open up a gap for itself in the sector for the commercialisation of residential electricity and gas, with the aim of grabbing a 1o% share over the coming  years. It will thus become one of the four main operators along with Endesa, Iberdrola or Gas Natural Fenosa.

The commercialisation activity will be called “Cepsa Hogar” and will start operating in a business which in terms of electricity reaches a total of 18 million homes and 7,5 million in gas. Cepsa Hogar will offer a package combining natural gas, electricity and fuel.

According to Filipe Henriques, director of Cepsa’s Liquified Gas and Residential Natural Gas, if the company wants to grow in this new business it needs to be “the most competitive”. For this reason, he pointed out that the prices which it will offer will be “very competive” and below regulated prices – the TUR in the case of gas and the PVPC in the case of electricity.

In principle, Cepsa will commercialise electricity and gas in the residential market in the Iberian Peninsula, given that it is waiting to obtain the relevant permits to operate in Ceuta, Melilla, the Balearic and Canary Islands as well. Its objective will be to capture 1,5 million clients in the next few years, becoming a main player in the retail gas and electricity markets.

Cepsa already generates electricity via its eight co-generation plants and a combined cycle plant with which it supply its production centres. Since 20o2, it also commercialises electricity from third party renewable installations for consumption by its own installations and those of other end consumers.