Sunday, August 7

Casado mocks the government’s plan to create a public electricity company, ignoring the fact that most countries have it

The leader of the PP, Pablo Casado, has ironized this Friday about the Government’s proposal to create a public energy company with the aim of controlling the electricity market. In a tweet published this morning, accompanied by a photograph with the cover of the newspaper The world With the headline “Ribera proposes to nationalize the hydroelectric plant in the Podemos style”, Casado has written: “Exprópiese”.

The leader popular has resorted to that word in reference to the late Venezuelan President Hugo Chávez, who used that expression in 2010 to remove traditional jewelry stores from a central plaza in Caracas, in a video that later became popular.

Casado has thus associated the idea raised this Thursday by the third vice president and head of Energy Transition, Teresa Ribera, and confirmed today by the Minister of the Presidency, Félix Bolaños, to create a public company to manage the power plants once they expire current concessions. The opposition leader has agreed with the deputy mayor of Madrid, Begoña Villacís, from Ciudadanos, who said this morning that a “populist” idea typical of countries like “Venezuela”.

However, and despite the fact that since the privatization of Endesa the presence of the State in the energy sector has disappeared in Spain, many countries such as the United States, France, Italy or Austria have energy companies with public participation to a greater or lesser degree.

In electricity generation, private investors are a minority on a global scale. Although they concentrate three-quarters of investments in clean energy, their share has decreased in recent years, according to the International Energy Agency (IEA).

Meanwhile, companies with public participation “accounted for around 61% of the installed electricity capacity in 2016 and about 52% of the power planned or under construction” on a global scale, according to a work document of the Organization for Economic Cooperation and Development (OECD) published in April 2018. In other words, only 38% of the electrical power installed or under construction is in completely private hands.

This study highlighted the “important” role of public operators in the electricity sector in the world, “including several OECD countries” such as Canada, Norway, France or Israel, and recalled that 32 of the 50 largest companies in the electricity sector Worldwide they have public participation, in a list that includes energy companies from countries such as China or Venezuela, Mexico and Russia, but also from Canada (Hydro-Quebec, 100% owned by that State), the United States (Tennessee Valley Authority or TVA , a giant that operates in the states of Alabama, Georgia, Kentucky, Mississippi, North Carolina and Tennessee), Sweden (Vattenfall), France (EDF and Engie), Brazil (Electrobras), Japan (Tepco, which had to be rescued by the Japanese State after the Fukushima nuclear disaster) and Italy (Enel).