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Endesa CEO joins criticism of Spanish windfall profit curb


05 Nov 2018 19:19


05 Nov 2018 19:19

(Montel) The Spanish government’s plan to cap so-called windfall profits from nuclear and hydropower generation made “no sense”, as Endesa had not yet covered investment costs, the company’s CEO Jose Bogas late on Monday.

“There is no real basis [in maintaining] that nuclear and hydro have windfall profits,” Bogas said during a call with analysts, echoing previous criticism from Iberdrola CEO Ignacio Sanchez Galan.
His comments came in the wake of government proposals to curb windfall profits, the Socialist administration arguing nuclear and hydropower plants were built decades ago and operators had long recovered their costs.
Endesa has invested EUR 800m since 2001 in its hydropower assets, and EUR 2bn into of its nuclear reactors.
“We are having meetings with political parties to explain the reality of [hydro and nuclear generation],” he said, as the Socialist government and its left-wing ally Podemos party held a minority position in the Parliament.
Endesa holds a majority stake in three out of seven reactors currently online in Spain, where total installed nuclear capacity stands at 7.4 GW.
The company posted a 11% year-on-year jump in earnings before interest and tax (Ebit) during the first nine months of the year to more than EUR 1.6bn.
The group’s generation in mainland Spain during the period fell 5% to 45.9 TWh, mainly driven by a thinner residual load and by an outage at the Vandellos 2 (1.1 GW) reactor, which was offline from March until late July, Bogas said.

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