Spanish energy supplier Holaluz Clidom SA (BME:HLZ) said on Monday it would no longer retail gas, citing exorbitant prices for its customers and the need to focus on green power.
The company expects to lose around EUR 3.9 million (USD 3.8m) of its EBITDA for 2022, but will seek to offset the loss by selling gas it has in inventory. It said that, given future prices of gas, it may not start selling off inventory until 2023.
For 2023, Holaluz anticipates a negative impact of EUR 6 million compared to financial targets set in April 2022. At the same time, a significant increase in gas prices would have likely led to a higher rate of non-payments than originally projected, the company said.
The decision will affect around 70,000 gas customers. Holaluz, as a retailer in the liberalised market, will refer the customers to regulated providers so they can benefit from much lower tariffs set by the Spanish government.
Holaluz highlights that gas supply has never been a strategic activity for the company. It said that gas bills this winter will likely strain household finances, while its Rooftop Revolution business -- green power production on unused rooftops -- can deliver electricity for a fraction of the current price over the next decades.
(EUR 1.0 = USD 0.977)
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