The Spanish government has revealed that it has provided over $32bn in order to assist Spanish companies working within the power generation industry.
Iberdrola (BMAD: IBE), who are set to exhibit at POWER-GEN Asia this week, and Gas Natural SDG are two of the companies whose debt repayments are being covered.
Companies working within the sector booked more revenue than they received from their clients for most of the past decade — the difference between government-set prices for buyers and sellers — with the shortfall booked as receivables on their balance sheets, according to Bloomberg.
Industry Minister Jose Manuel Soria said in September that the government will cover repayments of power system debt this year alongside a package of tax increases on power companies to break the debt spiral.
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