By Aida Pelaez-Fernandez and Christina Thykjaer
MADRID – Spanish energy and fuel firm Naturgy has angered a few of its industrial clients by renegotiating long-term fuel contracts to match latest value hikes, regardless of paying the penalties for doing so.
Naturgy has unilaterally ended fuel provide contracts with corporations manufacturing brick and roof tiles in latest months, providing them new contracts with heftier costs, an trade group mentioned on Tuesday, leaving them little time to search out various suppliers.
“The compensation that the utility pays for the termination of its contracts could be very low in contrast with the value. Within the present market, corporations need to pay to purchase the fuel,” the affiliation, generally known as Hispalyt, mentioned in a press release.
With hovering fuel costs, turbo-charged by the robust post-pandemic restoration and the Russia-West stand-off in Ukraine, terminating contracts is extra interesting for utilities than maintaining supplying fuel at under market charges, however the sudden value will increase could be crippling for trade.
A Naturgy spokesperson confirmed that the corporate was renegotiating with industrial clients, not solely brick and roof tile makers, to “adapt contracts to the brand new market circumstances”.
She added the corporate would search to make the value will increase momentary. She declined to reveal how a lot Naturgy has paid in penalties to clients.
In sure wholesale markets in Europe, pure fuel costs have jumped four-fold over the previous yr, prompting a number of heavy trade associations reminiscent of metal producers, cement and fertilizer makers to induce European authorities to behave to restrict hovering power costs.
The worth of fuel has repercussions for the entire financial system via electrical energy era, which turns into dearer and which in flip makes all financial exercise and all retail costs dearer.
Inflation in Spain is working near its quickest tempo in three many years, whereas industrial value will increase are working at their quickest ever.
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