The government closes a contract with Iberdrola for two years of EUR 129 million, twice the price last year
- The Basque Government has approved Iberdrola’s proposal for the supply of electricity for the next two years. This year it has paid the energy company 75.9% more than last year, while it has made the biggest profits in its history. However, the PNV has pressed a month ago for the Spanish Government to reduce taxes on large companies.
The Basque Government has reached an agreement with Iberdrola for the supply of electricity to public institutions in the Autonomous Community of the Basque Country through centralised procurement: In 2023 and 2024, the government will pay 129 million a year to the energy company, twice as much as last year. In Hordago-El Salto, Ahoztar Zelaieta announced that the Lakua Government has earmarked EUR 91.7 million more for energy expenditure, while Iberdrola has gained the greatest benefits in its history.
On the occasion of the Energy Sustainability Act of the Basque Country, the Basque Government approved in October the centralized procurement of electricity supply for public bodies in the Autonomous Community of the Basque Country. On 28 November it linked the agreement with Iberdrola for the next two years. The company's president, Ignacio Sánchez Galan, points out that it will not lower prices until 2025.
The price of energy has increased considerably in the last year and the government has assumed a cost increase of 75.9% over the previous contract, i.e. 55 million more than in 2020. In addition, it has allocated an additional EUR 36.7 million to the credit to pay the costs of 2022. During this period, Iberdrola made a profit of 3.104 million this year, 29% more than last year.
Iberdrola has achieved 73 million annually since 2020 from the Basque Government. That year, when the last contract was agreed, it raised EUR 156,8 million from the Basque public administrations. In addition to the Government's 73 million, it achieved 83.8 million of the deputies of Gipuzkoa, Bizkaia and Álava, the municipalities and many other public institutions.
Hordago, for its part, recalls that last November the Government of Spain lowered taxes on large companies because a PNV amendment called for it. “In 2019 Iberdrola contributed 1.3% of its tax benefits for its authorization; lehendakari and MPs are the main energy allies,” ELA said last year. Furthermore, last year, under pressure from the PNV, the Spanish Government rejected the measure to limit the electricity price.
EH Bildu has reported 15 cases in which PNV politicians end up in large companies, such as Iberdrola or Repsol. Juantxo López de Uralde, president of the Elkarrekin Podemos Energy Transition Commission, stated that the PNV is the largest number of revolving doors in the Spanish State for representation in Congress.
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