Acciona studying legal action against energy reforms in Spain

“We believe (the measures) are a major breach of investor confidence with a massive impact on our profit and loss,” an Acciona executive said on a conference call on Friday.

Energy reforms represent 5,600 million euros less for renewable energy while polluting energy revenues have grown by 2,500 million euros.Legal security in Spain is lower than in Argentina. Acciona, Endesa, and many other companies study sue the Spanish government: fails all commitments of the European Union to promote renewable energy and legal uncertainty is worthy of a banana republic.

Acciona estimated that only reform passed this year has an impact of 2,000 million euros for the entire renewable energy sector in Spain.

Acciona halved the amount of the investment plan on renewable energy such as wind energy and concentrated solar power compared to initially expected.

Government measures such as a power generation tax and subsidy cuts designed to mend a deficit in the utility sector have a significant impact on renewable energy firms like Acciona, which said it was studying legal action.

Spanish building and energy firm Acciona is cutting investment and dividends because of energy sector reforms it estimates will wipe about 165 million euros ($216 million) from annual pretax