The Aftermath of the Power Outage: Redeia’s Leadership Under Scrutiny
Following the initial shock of the recent power outage , Redeia’s president, Beatriz Corredor, has taken proactive steps to address the crisis. According to reports from EL MUNDO , she reached out to her predecessors, urging them to publicly defend the current model of the company, which has maintained a monopoly over the operations of the electricity system and transportation network.
This list of former leaders includes notable figures from the Socialist Party , such as Jordi Sevilla, Jorge Fabra, and Luis Atienza. However, some express hesitation, considering the timing inappropriate for rallying behind a model that is already the subject of intense political scrutiny, especially as discussions continue regarding the root causes of the outage.
Corredor is seeking a written endorsement from past presidents—regardless of their political affiliation—asserting that Red Eléctrica, a subsidiary of Redeia, should retain its position as the operator of the electrical system and the sole controller of the transport network. This manifesto could be seen as politically motivated support for her leadership during a turbulent period when her authority has been compromised by recent changes within the company’s management structure, implemented by the government.
Sources close to Corredor’s outreach express that several former presidents believe this is not the right moment for such unified support, emphasizing that the current discourse should not be shifted towards defending such operational models but should remain focused on investigating the outage.
The third vice-president of the government, Sara Aagesen, appears to take a more cautious stance than Corredor. She acknowledges that discussions around altering the current operational model are valid, but insists that prioritizing the investigation into the causes of the blackout is essential, as reported by ElDiario.es.
The existing model has faced criticism from various quarters, including the governing party Sumar, which advocates for separation of functions and even nationalization . Corredor, however, views such propositions as fundamentally flawed.
During her contentious speech at the Ibero-American Business Alliance (Ceapi) congress in Seville, the former socialist minister of housing emphasized that operational responsibilities should remain under one entity. She argued that disaggregating these functions would be analogous to separating the brain from the spine , undermining efficiency and coordination, and potentially leading to higher infrastructure costs.
Yet, the National Commission of Markets and Competition (CNMC) has raised concerns regarding the current operational model, stating in a previous report that it does not negate the risk of conflicts arising from transport operations. They insist that such a model could allow the operator to overestimate infrastructure needs or prioritize investments that may not align with security concerns. Corredor defends the current model, citing its replication across 22 of the 27 EU nations as an indicator of its societal advantages.
Nevertheless, rallying support appears to be more of a strategic maneuver for Corredor, as the idea of separation would necessitate significant compensation for Redeia’s investors, of whom 80% are private.
Corredor explicitly denied any failures in her company’s operations during the crisis response in Seville, asserting that no provisions would be made for potential claims—from her standpoint, presenting herself more as a CEO defending her stakeholders rather than a neutral operator.
The ongoing investigation into the outage by Entso-E, the association of system operators, provides little clarity regarding the causes. Their latest update suggests that Spain and Portugal’s defensive strategies fell short, leading to system collapse. However, the report devotes more attention to the swift recovery of the system post-outage than to determining its causes, which diminishes its credibility in addressing the worst blackout in two decades.
The Environment Minister of Portugal, Maria Graça Carvalho, has voiced that the inquiry should not be led by Entso-E, given their vested interests, but rather by the Agency for the Cooperation of Energy Regulators (ACER), which encompasses European regulators like the CNMC. As events unfold, it is increasingly clear that an independent, transparent investigation will be essential to illuminate the circumstances surrounding the blackout.
Looking Ahead: Evolution in Government Dynamics
Meanwhile, three days before the disappointing Conference of Presidents , which witnessed a renewed clash between the government and autonomous communities, a markedly different atmosphere characterized a dinner in Seville’s Real Alcázar . During the tenth anniversary celebrations of the Ibero-American Business Alliance (Ceapi), the Minister of Industry, Jordi Hereu, and the President of the Andalusian Junta , Juanma Moreno, exchanged respectful remarks, extending heartfelt accolades towards one another despite their political rivalry. Hereu stands out in a government often marked by acrimony, while Moreno is also known for his more tempered approach within the Popular Party . This camaraderie between politicians from opposite ends of the spectrum painted a welcome image of institutional respect and collaboration.
Shifts on the International Horizon
Sunday’s protest in Madrid reflected internal discontent with the Prime Minister, Pedro Sánchez . Compounding his challenges is a notable shift in international dynamics. Within NATO, considerable pressure from the United States and other allies has arisen for Sánchez to commit to a 2% military expenditure target as a proportion of GDP, anticipating an eventual increase to 5%. Furthermore, the European Commission , once seen as an ally during Sánchez’s first mandate, has begun to scrutinize his government’s actions more closely. This development pertains particularly to the government’s intervention in BBVA’s takeover bid and its handling of public pensions amidst mounting challenges that underscore the waning influence of socialists within the EU.
Potential Future Changes in Banking Leadership
In the banking sector, whispers suggest a potential transition in leadership within CaixaBank. The current president, Isidro Fainé, is reportedly considering stepping down as president of the Spanish Confederation of Savings Banks (CECA), with potential successor Antón Arriola , the president of Kutxabank , in line to take over. Fainé has articulated that he does not feel obligated to complete the term, and insiders note that Arriola would likely receive unanimous support. The CECA anticipates addressing challenges ahead, most prominently a legal challenge against the new bank tax, yet both Fainé and Arriola seem undeterred by these complexities.