Endesa fears competition from small power companies more than from oil companies


Javier González NavarroJavier González Navarro

Madrid

Updated:

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Endesa’s CEO, José Bogas, said today that he feels “calmer with oil companies that have entered the electricity business than with small electricity companies because they have no intention of remaining in the sector. However, the oil companies, when they consolidate their position, will take care of the market ”; they do not seek speculation, “which is what hurts the business.”

Bogas, in a meeting with the press, affirmed that the big oil companies have stormed in an “aggressive way to gain a foothold” in the electricity sector, but has applauded their entry into this business, since they “have a vocation to stay.” He added that “I would do the same if I wanted to come in and make a hole for myself. Repsol has stolen or captured customers from us; surely because they have been smarter and have offered them more money. But of course, they had nothing ”, he explained.

Despite this, the manager stressed that the electricity market has a “very high” level of competition, also with other incumbents that enter the “price war”, for which he valued Endesa’s merit of continuing to be the leader to “stay and maintain their margins, offering a better product to customers.”

In this sense, he said that “we do not want to enter into a price war, but rather to build customer loyalty. We want to stabilize our customer base, not get into battle. ” Bogas has acknowledged that Endesa «has lost customers every year, almost a million in total; We should not worry, but we should occupy ». To do this, this company has recently launched a new rate on a multi-service platform.

At the aforementioned meeting, Bogas confirmed that Endesa will attend the next renewable auctions to be launched by the Government, foreseeably before the end of this year, since it considers that they have an adequate design to “prevent speculation and market distortion.”

However, he stated that “we don’t need auctions. Basically we have a very stable customer base that allows us to go to build renewables and cover them with our customers and that’s it ». He added that, in any case, it is a process that makes sense for the Government to create competition, facilitate the entry of other actors and control the rate of integration of renewables.

Regarding nuclear power plants, he considers that, rather than proposing the closure of the nuclear park, “we have to fight” with the Government to lower some of the taxes levied on these plants, so that their profitability is “reasonable”.

“Although some colleagues say we must close” the nuclear park, for which a timetable was agreed last year for its orderly closure between 2027 and 2035, “it makes no sense to close the nuclear plants now.”

Thus, the Endesa executive advocated working more on those “extra costs” that are charged to nuclear power plants, since, with current prices, there is no profitability for the company.

He also reiterated the need to “lower” the price of electricity, since “it does not make sense” that 50% of the cost of the electricity bill “is absolutely dispensable, since they are energy policies or taxes.”

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