Spain’s main political parties PP, PSOE and Cuidadanos, with the exception of Podemos, have agreed to reform the electricity tariff discount rate, as well prohibit electricity cuts for those consumers considered “very vulnerable.” Analysts at ACF believe it will be important to confirm the final conditions and the net impact for the electricity companies, but a priori they don’t expect this will be significant.
The European Central Bank (ECB) will today begin its corporate debt purchasing programme (CSPP). This means it will acquire, via approximately 12 national central banks, investment grade debt issued by companies. Spain could benefit from this programme to the tune of nearly 60 billion euros.
The main European electricity companies will invest nearly €85 billion over the next four years to speed up their strategic transformation to enable them to deal with the foreseeable drop in coal and gas prices. The companies plan to turn their strategies around, focusing more on renewable energies, networks and regulated activities.
UBS | The regulator CNMC has kicked off an investigation on the competitive status of the Spanish power generation market. Endesa and Gas Natural Fenosa, the companies most exposed to it.
MADRID | The Corner | The Spanish Council of Ministers has approved the definitive figure for the 2013 tariff deficit. The figure, €3.54 billion, will be recoverable via the electricity tariff over a period of 15 years. It will be remunerated at 2.195% of interest rate. The measure will have an impact on the main utilities that operate in Spain: EDP (Ba1 p, BB+ e, BBB- e), Enel (Baa2 n, BBB e, BBB+ e), Gas Natural Fenosa (Baa2 e, BBB e, BBB+ e) and Iberdrola (Baa1 n, BBB e, BBB+ e).
LONDON| By UBS analysts | Mexico is the eleventh largest country in the world by population. Yet, when it comes to energy infrastructure and consumption per capita, it ranks poorly especially compared to developed, western regions. The energy policy recently introduced provides a major capex opportunity: about €100bn over the coming ten years. Estimates for EU utilities reach investments of €18bn, which would allow for a potential net income increase of €1.1bn. In this context, most of the companies eyeing the region are from Southern Europe, with Enel and Iberdrola remaining as the sector top picks.
LISBOA| By José Alves | Capital Madrid| How the European Union prevents Russia from accessing strategic sectors, but when it comes to China the governments just seem to look away and open the door.