A white paper on the Spanish energy sector commissioned by the government has been released by the Industry Ministry.
The paper outlines the need for greater competitiveness and recommends limiting the dominance of individual players inn the energy market to 22% of total annual demand. Endesa and Iberdrola, Spain’s two largest electricity supply companies, are expected to have their presence in the electricity market restricted by a variable percentage to avoid distortions to pool prices. The moves would only limit direct market sales, allowing companies to either sell assets, auction-off excess electricity, or sign long-term supply contracts at regulated prices.
Energy market regulator the CNE is to deliver its own evaluation of the study before the Ministry considers its recommendations.
The paper was produced by university professor and former regulator Jose Ignacio Perez Arriaga who says that regulations drafted in 1997 have completed their first cycle and require urgent reform.
Reform of the regulatory framework isn't expected to be complete until the end of this year or early next.
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