Endesa to quit Portuguese energy market, says losing ‘millions per day’ – report

3 October 2007 – Endesa SA plans to leave the Portuguese liberalised energy market as it is losing ‘millions of euros per day’ by not being able to bring electricity from Spain for its clients, Jornal de Negocios reported, citing Endesa Portugal CEO Nuno Ribeiro da Silva.

According to the newspaper, Ribeiro da Silva said that the lack of electricity interconnections with Spain, EDP Energias de Portugal’s monopoly on production and the price distortions form ‘the killer triangle’, is forcing the company to leave Portugal, even though it had around 54 per cent of the liberalised market in July.

Ribeiro da Silva blamed the Portuguese government of ‘going against the market’ by altering the tariffs for 2007 and extending EDP’s dam concessions, and as a result ‘wasting an opportunity to have production competition,’ the paper added.