Here’s what the law says about the possible 200,000 people who could be affected by the closure of an electricity company in Spain

Hello Luz, the Catalan clean energy marketer, is in a rather difficult financial situation, so much so that it could lead to the closure of the company. The company has lost 63,750 customers over the past year and faces sanctions from the National Markets and Competition Commission (CNMC) for failing to comply with tariff system obligations. In addition, he accumulates a debt of almost 60 million.

Closing Hello Luz, Among other things, this will not only result in the loss of one of the competitors in the free electricity market in Spain, but may also lead to higher prices for some customers, especially those with contracts for power greater than 10 kW. . However, the overall impact should be limited because His client portfolio represents only 1% of the total.

To avoid permanent closure Hello Luzthe company officially formalized the financing operation amount 4 million (already paid) and is negotiating with the Catalan Institute of Finance (ICF), dependent on the Generalitat, on two possible loan alternatives:

What will happen to clients? Hello Luz?

If Hello Luz closure, customers can be assured of electricity supply. According to Royal Decree 216/2014, approved on March 28 this year, which establishes the methodology for calculating voluntary prices for small consumers of electrical energy and its legal regime for concluding contracts, the company must guarantee this.

Their customers would enter into a Voluntary Consumer Price Contract (PVPC), a rate regulated by the government. However, those contracting for more than 10kW will have to pay a 20% penalty on their bill to encourage switching to another electricity company.

Yeah Hello Luz, On the other hand, it sells its client portfolio to another marketing company, the latter must retain the terms of the original contract. To make any changes to these terms, you must give customers 30 days’ notice.

The Organization of Consumers and Users (OCU) believes that customers Hello Luz They don’t need to worry at the moment. However, the organization recommends comparing offers and switching companies if they find a better option.

Explanations Hello Luz, June 28

The Holaluz Board of Directors unanimously decided to convene the next general meeting on June 28, which, in addition, must approve the appointments Elena Gomez del Pozuelo And Eddie Soler as independent directors of an energy transition company whose market goal is to decarbonize the economy.

The board will also provide shareholders with unqualified audit results and “encouraging” financial data. Over the past 12 months, the company’s accounting gross operating profit (Ebitda) reached “break-even” (balance sheet), an increase of €23 million compared to the result recorded for the full year 2023. In terms of normalized Ebitda, the company grew from 4.3 million in 2023 to 24 million euros in the last 12 months.