Dry spell may cost euro 400 million

Several months of drought that has caused a lack of hydroelectric capacity has caused companies, including Union Fenosa, Iberdrola and Endesa, to have used already up to 14% of the CO2 emissions rights assigned to them for 2005 under the national greenhouse gases emissions plan (NEP), part of Spain’s contribution to the Kyoto Protocol. According to reports from the country if the situation continues this may be expected to cost electricity companies euro 400 million for the purchase of additional carbon emissions rights above its allocation of 75 million tonnes.