naturalness launched a flat rate of 55 euros per megawatt hour for industry and for a period of three years. The plan enables companies to stabilize their energy budgets as if they had signed a medium term energy supply agreement, according to sources from the group led by Francisco Reynés.
Through the initiative named Industrial Gas Commitment, the company offers industrial gas customers a stable and competitive price in today’s energy landscape. We want to contribute to increasing the competitiveness of Spanish companies, boosting visibility, and reducing exposure to international energy price swings. We have done this before, and it demonstrates the company’s commitment to customers and society, as Reynés explained.
The price of electricity rebounded 8.4 percent this Friday, topping 200 euros
The energy company revived its strategy from early September 2021, when it launched the industry leading Light Contracting Initiative now extended to gas. The goal was to mitigate the effects of high electricity pool prices by ensuring the company’s marginal production costs were kept below a government set level of 67 Euro per MWh, a move that affected electricity supply for millions of households.
temporary scenario
In a volatile market, Naturgy reported a solid first quarter with a net profit of 354 million euros, up 9 percent, and an operating profit of 1,072 million euros, up 4 percent. The first quarter of 2022 showed uneven performance across regions, with demand evolving with macroeconomic trends, energy markets, and weather conditions.
Overall, the period reflected a rebound in international activity. Domestically, however, sales margins remained pressured by contracts that did not fully reflect the global rise in gas and electricity prices.
Naturgy had to source electricity from the pool due to limited hydropower, after selling all marginal electricity generation capacity to end customers at prices below the government floor of 67 Euro per MWh. The company faced additional challenges from external factors and regulatory changes affecting production and renewables.
Network activity grew, driven mainly by international operations, with rate updates across several geographies reflecting inflation and prior currency depreciation. In Spain, networks remained stable despite regulatory influences and softer demand in the quarter.
Naturgy increased total investments by 32 percent to 259 million euros. Net debt in finance stood at 13,062 million euros, a 1.8 percent rise from the end of 2021, supported by cash generation and a dividend payout of 0.5 euros per share in the first quarter.