Bloomberg News

Spain Power Law May Cost Utilities $2.4 Billion, Expansion Says

July 13, 2012

The reform of the power industry Spain is set to approve today may cost power companies 2 billion euros ($2.4 billion), Expansion reported citing a draft of the plan.

The power companies’ lobby Unesa told the government at a meeting yesterday the reform could wipe out all the profit in their Spanish businesses, the newspaper added,

The government aims to raise taxes and lower payments to the industry by about 7 billion euros in total to eliminate the so-called tariff deficit, the newspaper added.

Iberdrola and Endesa will contribute about 700 million euros each as the government imposes new taxes on nuclear and hydro plants, Expansion said.

To contact the editor responsible for this story: Ben Sills at bsills@bloomberg.net


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