The new socialist government in Spain plans to make changes to the energy sector in the country. Industry Minister Jose Montilla has undertaken to increase competition and lower costs – a move which, if it is carried out, could affect the dominant positions of the two major utilities, Iberdrola and Endesa. At present they control some 80% of the market, but Montilla believes that dominant positions normally result in increased prices to consumers, and is suggesting moves to reduce their dominance.

Tighter regulation is also on the agenda, with possible changes to the role of the National Energy Commission to make it more independent.