The electricity sector is boosted on the stock market after Government ‘respite’ in the decree of light. The Minister for Ecological Transition and third vice president, Tersa Ribera, has confirmed that it will reverse the ‘hack’ to the large electricity companies, after sliding in its intervention that will leave out of the regulatory cut forward contracts (known as PPAs in the jargon of the sector) among the big operators and big industry. After the decision is confirmed, Iberdrola and Endesa achieved a rebound of up to 3%, although at the close of the session it moderated.
The price of Iberdrola shares closed with an advance of 1.16%, close to 9.6 euros per title. Meanwhile, Endesa positioned itself as the fourth most bullish value when adding 2.5%. The increases are added to the rise in recent days, when the possibility had already been published that the decree against the ‘profits fallen from the sky’ that reduces the benefits of hydroelectric and nuclear production included some modifications.
The powerhouse that presides Ignacio Sánchez Galán it achieves an advance of more than 10.5% so far in October after losing 17% of its value in September. Iberdrola thus regains second place on the Ibex 35 -with a value close to 62,000 million euros- that lost the last week when being surpassed by Santander. The trend is similar to the upside is similar in the company you run Jose Bogas. It dropped almost 14.5% in September and in October it already recovers 8.5%.
On the Ibex 35, Acciona and Solaria they also advance 1.15%; Electric Network, 0.35%, and Enagas, 0.33%. Naturgy, which the day before registered a rise of 4% while waiting to know the result of acceptance of the takeover bid launched by the Australian fund IFM, today is down more than 0.2%. Siemens Gamesa it is also trading negative, leaving 0.4%.
The Ribera meetings with the industry seem to have had an effect. The Minister for the Ecological Transition explained this Thursday that the Government is open to not applying the decree in cases of contracts with stable prices similar to the ones there were before the light went off in the wholesale market. New measures on bilateral contracts and reasonable prices for industrial consumers will be approved in the coming weeks, he added.
The royal decree-law, approved in September and already in force, which will cut electricity companies for six months the benefits they obtain in the market due to high gas prices, will be validated today in Congress. And this, despite the votes against PP, Ciudadanos and Vox, and the abstentions of the PNV and Junts per Cat, as announced by the groups in the debate.