“In Europe, the problematic winter as regards energy will be next winter, not this one”, said Francisco Reynés, president and CEO of Naturgy, at the latest Desayunos Esade held by Esade Alumni in conjunction with Criteria Caixa. This is one of the implicit ‘threats’ of the current scenario of uncertainty which, believes Reynés, “transcends the energy sector and, as usual in this sort of circumstances, involves opportunities and threats.” Amongst the former, the Naturgy CEO mentioned “prices, which are now lower than a year ago, and the acceleration of the energy shift, quite a feat in a mechanism as complex as the European Union.” As regards the threats, he highlighted “the exit of Russia, a key player, from the energy market, and the opening up of the frontiers of China, whose energy needs are still unpredictable.”  

As regards the uncertainties in the coming months, Francisco Reynés once again mentioned prices, “which used to be the only unchanging indicator of our economy, and is now one of the most elastic,” and also regulatory developments, “Naturgy is now 180 years old and we had never experienced so many regulations as in the last year.” “The energy industry has had to deal with an average of almost two new regulations a month, obliging us to constantly adapt the business models of all our companies,” he added.

The trilemma of the energy industry 

“We must strike a balance between three major challenges, which we have to address simultaneously,” said the Naturgy Chairman and CEO in relation to what he called the “energy trilemma” in which issues related to sustainability, affordability for consumers and the security of supply “must be addressed in a perfectly balanced way.” “We must find solutions that do not put the environment at risk while guaranteeing the availability of energy at a reasonable price whilst, at no time, jeopardizing the security of the supply,” he explained, emphasizing “how focusing on just one of these aims could negatively impact the other two.”

In relation to supply, Reynés said that “commitment from companies is needed”. Naturgy’s commitment, for example, takes the shape of “very long-term contracts, up to 2040, for example.” As for economic accessibility, he referred to regulations and, once again, the commitment of the private sector. Finally, on the subject of sustainability, he insisted that “Europe has done its homework well” and that in terms of the energy shift, “Spain is a good example thanks to the major regulatory and management decisions it has taken.”

The president and CEO of Naturgy was accompanied at this session of Desayunos Esade by Mario Lara, director of Esade Madrid.