Holaluz announced this week that it is ending its gas marketing business. This trend is not isolated; the energy crisis is impacting many small electricity and gas companies. Some go bankrupt, others sell assets, and some decide to stop selling a product, as seen with the Catalan power company. A noted energy expert from the Consumers and Users Organization (OCU), Javier Arranz, emphasizes that the crisis has exposed weak liberalization and low competition. His take is clear: if a crisis hits and only the big players survive, it harms everyone. This is not working, Arranz argues.
Holaluz’s move could extend if it follows the government’s decision to limit quarterly increases in the regulated tariff or TUR. Since last September, there has been talk of keeping gas bills down, a policy that makes it harder for small firms to submit competitive offers. The question remains: which price tier will small suppliers be able to compete with?
In the electricity and gas markets, Holaluz, Fenie Energia, Aldro Energia, and Factor Energia carved out a niche by attracting customers away from larger groups. They operated with vertically integrated structures, producing energy and marketing it through subsidiaries. Collectively, they surpassed a 10% share of the free electricity market and about 5% in gas. Yet the crisis in 2021 reversed this trend, prompting customers to leave smaller brands and boosting the presence of Iberdrola, Endesa, Naturgy, and EDP. In the past two years, approximately one hundred independent operators have ceased operations in Spain, according to the National Commission on Markets and Competition (CNMC) [CNMC report 2023].
The early signs appeared over the past year as liquidity tightened and investment capacity fell for the Electricity Grid operator. The CNMC responded by smoothing liquidity requirements, but the issue remained acute. The Association of Independent Marketers (ACIE) has appealed since late last year for a revised timeline of ICO approvals to ease financing. These smaller firms buy electricity but bill on a weekly cycle, often with a five-week delay, which leads to price fluctuations catching up on their balance sheets. They purchase energy at the standard rate, but bill at reduced VAT levels, due to policy changes, and face a delayed Treasury refund. Such dynamics create a mismatch between purchases and collections, complicating cash flow for these marketers [ACIE briefing 2023].
As a result, many independent marketers urge policymakers to ensure all market players can compete on a level field and to introduce measures that relieve liquidity and financial pressures. A message from ACIE’s president, Asier Gorostiza, underscores the demand for fair competition and pragmatic economic support to sustain marketers in a challenging environment [ACIE statement 2023].
Destruction of the competition
Last September, the government signaled that some of the profits from nuclear and renewable energies would be redirected to cushion high gas prices, with the aim of boosting the early-year revenue outlook by about €2.6 billion to help lower electricity bills. Shortly thereafter, the rule was adjusted to exempt contracts at fixed prices below €67 per megawatt-hour, in line with the claims from large players that they did not have extraordinary interests. The adjustment reduced potential collections and sparked debate about who benefits [Government decree 2023] .
The revised framework led to limited additional revenue. The Third Vice President and Minister for Ecological Transition, Teresa Rivera, estimated €340 million in May and suggested that many energy offers fall under the €67/MWh threshold. Independent marketers argue that the measure still helps only a portion of consumers, inevitably widening the gap between first-class and second-class customers. ACIE’s calculations indicate that 59% of users face €67/MWh, while 41% could face prices close to five times higher, depending on how contracts are structured and timing aligns with market prices [ACIE impact assessment 2023].
Javier Besco, editor of Fenie Energy, notes that larger players tend to attract customers by signaling energy stability, while smaller firms must purchase energy from the market at elevated prices, sometimes between €150 and €250 per MWh. The September 2021 rule also required larger energy companies—such as Iberdrola, Endesa, Naturgy, and EDP—to divest part of their nuclear and renewable assets, with the aim of broadening independent marketers’ access to supply for large customers and industry. However, the plan did not fully take off, and much of the anticipated energy remains concentrated among the major groups. Independent marketers remain hopeful that continued policy refinement and liquidity support will reduce inequality in access to energy markets [Industry commentary 2023].