Bogas (Endesa): Renewables in the pool have revenues well above their reasonable profitability

“For the period 2023-2025 an adjustment is planned to take into account what happened in the previous period,” said the CEO.

Bogas (Endesa): The price of electricity could fall from the second quarter of 2022

The CEO of Endesa, José Bogas, has attributed the high price of energy for customers in the retail market and industry to the rule that establishes the obligation for electricity companies to buy between 30% and 35% of energy (about 80 TWh) from the technologies of the RECORE (renewable, cogeneration and waste). For this reason, it has asked the Government to advance the adjustment of the premiums for renewables.

In this way, as explained by the manager, Those 80 TWh are guaranteed reasonable profitabilitybut they are earning a much higher income. The reason is that they are directly receiving market prices and they are only going to have to return a part (approximately half) and in a very long term.

“Generators are guaranteed a 7.4% profitability. For the period 2023-2025 an adjustment is foreseen to take into account what has happened in the previous period ”, Bogas stressed.

He has also indicated that the electricity sector has asked that this adjustment be made as soon as possible. In addition, he has stressed that what electricians cannot do is “Buy at 120 or 130 euros per MW and sell at 60”.

Therefore, in his opinion, “the solution to high energy prices may come from the contribution of renewable generation that has a guaranteed reasonable profitability, but that now he is receiving an income much higher than that guaranteed by regulation “.

Bogas, who made these statements at a meeting organized by the Seres Foundation, has lamented the high prices that clients of the regulated market and a large part of the industry have been bearing. And for that reason, it has announced that the electricity companies are not going to take advantage of the situation to sell energy above the market price.

Finally, José Bogas has announced that the intention of the electricity companies in the future is to sell energy “at market price and not at future price”.