Spain's Power Grid Crisis Sparks Blame Game Between Government and Utilities

Sánchez targets utilities over blackout as sector pushes back

Who pays the bill for a blackout that plunged the Iberian Peninsula into darkness? Prime Minister Pedro Sánchez appeared after the Cabinet meeting and repeated five times: "We will obviously demand all appropriate responsibilities from all private operators." To executives at Iberdrola, Endesa, Naturgy, Repsol, EDP, and Moeve, this sounded like a declaration of war. Hours earlier, these companies had contacted state bodies convinced the fault lay with the system and that responsibility would fall on Red Eléctrica (REE). On Tuesday, that hypothesis collapsed.

What peine and who the government is blaming

The blackout peine an old conflict. The Executive has always kept the sector in its sights: first accusing them of windfall profits, then of speculating during the 2020 energy crisis, and finally, former Energy Minister Teresa Ribera accused utilities of getting rich during the Ukraine war. This led to a revenue tax, also applied to banks, which failed in Congress due to lack of agreement. Moncloa tried again after interest rate hikes and now writes a new chapter.

The sector reacted immediately. "Don't count on us for anything," warned an executive from a major company. Others lamented: "It's incredible, less than three days have passed and they are already looking for scapegoats. We are always the easy target."

The Moncloa meeting without CEOs

The accusation came hours before Moncloa summoned major companies to urgently discuss the blackout. Ignacio Sánchez Galán (Iberdrola), Francisco Reynés (Naturgy), and Josu Jon Imaz (Repsol) did not attend the late-afternoon meeting. The photo released by the government hinted at the level of discontent. In the sector, this sequence—attack first, seek image later—is seen as ritual: it peine in Davos with banks and energy firms, and in meetings with social agents regarding US tariffs.

Iberdrola leads the fight and points to Red Eléctrica

Iberdrola has resumed its role as the government's critic, as it did during the Ukraine crisis. Chairman Ignacio Sánchez Galán stated during earnings presentation to analysts that the blackout was solely "the fault of the Government and Red Eléctrica." Minutes before meeting the Executive, he warned he would take "all necessary measures" to protect the company and clients. Sector sources confirm Endesa, Naturgy, Repsol, EDP, and Moeve will act similarly if Sánchez maintains his stance.

Red Eléctrica defends itself and Moncloa backs her

After the blackout, all eyes were on Beatriz Corredor and Red Eléctrica. Once the storm passed, it is Moncloa that supports its president. Corredor defended her management, denied REE was at fault, and refused to resign. In an RTVE interview, she also pointed to utilities: "Private operators are responsible for supplying electricity to the System. We must see and verify with data if there is responsibility." Third Vice President and Minister for Ecological Transition, Sara Aagesen, highlighted REE's "constant," "decided," and "public-interest-focused" work, which allowed all substations to be available by 4 AM on Tuesday the 29th.

Technical origin: 0.15 Hz drop collapses system

According to circulating technical reports, the deviation was 0.15 Hz below the ideal 50 Hz. That is when the system crashed and protections triggered. There is no other cause: the system went haywire, but had warned hours, days, and weeks prior that things were chaotic. Two interpretations emerge. One argues the problem is infrastructure and who pays to adapt it to renewables; the other notes the system has produced three-quarters of daily electricity via renewables for nearly a decade without serious incidents, and noise arises when someone loses control of a massive business.

Public vs. private ownership in Red Eléctrica

Debate shifted to Redeia's legal nature. The State controls 20% via SEPI; Pontegadea (Amancio Ortega) holds 5%; BlackRock, 4.644%; free float is around 70.22%. Some argue the government appoints the president directly, making it public. The objection is that a listed joint-stock company with 80% private capital is not a state-owned enterprise, and the State, with 20%, can propose but not decide. Discussion remains open.

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With these elements, the question is not whether more blackouts will occur, but who signs the next statement. Utilities have said they won't do anything heroic to keep the grid stable if the narrative makes them culprits. And the government, for now, continues seeking blame in the private sector. Bad news for those paying the bill.