Citing losses resulting from the company's inability to supply electricity from Spain to its clients in Portugal, the CEO of Endesa Portugal, Nuno Ribeiro da Silva, has said that Endesa intends to leave the Portuguese liberalized energy market, Thomson Financial has quoted Jornal de Negocios as saying.
Although the Spanish company had a 54% share of the liberalized market in July, Mr Ribeiro da Silva is reported to have said that ‘the killer triangle’ was compelling the company to quit Portugal. The problem includes a combination of the lack of electricity interconnections with Spain, Energias de Portugal’s monopoly on production and the price distortions.
According to Thompson Financial, the newspaper also cited Mr Ribeiro da Silva as saying that the Portuguese government is preventing the creation of a competitive market by altering the tariffs for 2007 and extending Energias de Portugal’s dam concessions.