September 26, 2021

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Major electricity companies suffer in the stock market after the cut in their profits approved by the government |  Economie

Major electricity companies suffer in the stock market after the cut in their profits approved by the government | Economie

The Spanish Stock Exchange lost 0.41% and the level of 8800 points this Tuesday.Vega Alonso del Val / EFE

Stock market values โ€‹โ€‹of Endesa, Iberdrola and Nature’s stock market collapsed this Tuesday, after the Cabinet approved a package of measures to reduce the consequences of higher electricity prices, which This Wednesday, it will rise to 172.78 euros per megawatt-hour, setting a new all-time high. Within Ibex 35, which closed the session at 8,780 integers and fell 0.41%, Endesa was the most penalized company, suffering a 5.18% drop. For their part, Iberdrola shares, which started down 2%, finally returned 1.71% and Naturgy 0.64%.

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in between procedures This has led to the imposition of this penalty on a formula that puts a cap on the income companies can receive to produce nuclear or hydropower and which, according to government forecasts, could subtract about 2,600 million euros in the next two quarters. The reduction in profits for electricity companies will continue until March 2022, when the government expects the rise in gas prices to end. The executive body maintains that it is a temporary measure to mitigate an exceptional situation. All these measures are added to the current Reduce value added tax In effect since June, it increased from 21% to 10%. According to the third Deputy Prime Minister and Minister of Environmental Transformation, Teresa Ribera, at the press conference after the Cabinet, the forecasts for the coming months paint an unprecedented spiral that generates an inflated effect in the price of electricity and this has a systemic impact on the well-being of households and the entire Spanish economy.โ€

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Added to all this is the bill currently being processed in the House of Representatives to also limit the benefits to technologies that do not emit carbon dioxide thanks to the high price of emissions rights. In this case, the impact calculated by the government is about 625 million per year.

Conversely, the highest gainers in the Spanish stock market were PharmaMar (+5.81%), Inditex (+2.31%), Grifols (+ 1.34%), Almirall (+ 1.29%), Colonial (+14%) and Merlin ( + 0.75%). Other European indices present a changing scenario: if London and Paris decline respectively by 0.49% and 0.36%, Frankfurt and Milan advance 0.14% and 0.39%. Wall Street, just before 7 pm on Tuesday, Spanish peninsula time, was trading in the red. The S&P 500 is down 0.35%, the Dow Jones is down 0.62% and the Nasdaq is down 0.08%. Finally, the euro against the US currency settled at $1.1822, while the Spanish risk premium settled at 66 basis points, with the required interest on the decimal bond at 0.303%.