Power companies are anxious about the Ministry of Industry's decision to suspend tariff deficit payments. It looks like José Manuel Soria is in conversations with the Ministry of the Economy about changing payments, which are currently too high because of high interest rates of recently-placed tariff debt.
On more than one occasion, this interest rate has passed 6% and could create a paradox: solving the problem could push the interest rate even higher. The National Energy Commission (NEC) warns that it is trying to create a second deficit issue that will need to be sold to the markets.
Industry's decision will prevent the placement of a 7 billion euros securitization, and it will also extend the term of the tariff deficit payment deferal. Industry has asked for a payment moratorium in order to find another solution for paying off tariff debts.
