Iberdrola and Endesa lose 4.9 billion euros of market capitalization in the space of two days after the Spanish government announces measures to control electricity prices in Spain.
The government approved a package of measures with which it hopes to lower electricity bills for consumers. This has hit both Endesa and Iberdrola hard and their shares fell by 3.3 per cent and 2.4 per cent respectively on Wednesday, September 15.
In only two days of trading Endesa and Iberdrola have lost a staggering 4.9 billion euros in market capitalisation, according to Cinco Dias.
The Council of ministers on Tuesday approved a royal decree which saw electricity prices limited due to a temporary reduction of the excess remuneration that electricity providers receive amongst other measures.
“These measures appear to go against the current energy market design, and look like a step towards partial regulation of energy bills. As seen in 2013, this could be in breach of the EU Energy Directive,” said investment bank Goldman Sachs.
In other Spanish news, Santander opens ten-million-euro line of credit for those hit by the devastating Sierra Bermeja fire. The bank aims to help farmers hit by the fire get up and running again as soon as possible.
Santander have opened a line of credit worth 10 million euros which will offer “very favourable” conditions to people affected by the Sierra Bermeja fire that hit multiple municipalities in Malaga.
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