Gas Natural SDG : About half of all Gas Natural Fenosa customers will see no electricity price increase, despite the current situation

About half of all Gas Natural Fenosa electricity customers (4.5 million in total) will see no electricity price increase beyond that which might stem from any increase in consumption due to the winter weather (mostly heating costs), despite the current high prices in the wholesale market. This is because the company has specific rates contracted with the group's marketing companies in the deregulated market. Of its other customers, which are supplied by a benchmark marketing company, about 450,000 are receiving the subsidised rate and another 2,000 will see no electricity price increase because they are on a fixed rate.

In recent days, Gas Natural Fenosa has sent out approximately two million communications (SMS, emails and private notifications via its virtual office) to those customers who will not be affected by the electricity price increase because they are on a fixed rate with one of its marketing companies.

The company reminds people that the high prices in the wholesale market are being caused by a series of external factors linked to current weather conditions. This has caused the price setting process to be affected by the fact that demand has increased at a time when there is neither wind nor water to generate power and the system is being required to use the backup power source provided by combined cycles (based on gas) and coal power stations. These generation systems depend on the price of their raw materials on the international markets. However, thanks to these systems, no power supply problems have arisen in the country in spite of the strong demand for electricity.

It should also be remembered that only about one-third of the total bill is affected by the electricity pool price in the wholesale market.

Barcelona, 20 January 2017