The lights are back on for Spanish power companies. In other words, they are making money again. After three years of falling revenues and taking an 800-million euro hit to ebitda because of regulatory and tax changes, power companies expect to reap a profit in 2015 thanks to solid foreign electricity sales and moderate improvements at home in Spain.
In his 2014 strategy, Iberdrola CEO Ignacio Sánchez Galán calls for an inflexion point somewhere in 2015. It is welcome. The power sector needs to form an agreement between the national government and its companies in order to ensure that it can function properly. Their relationship will not only improve corporate profits, but national well-being.