Spanish industrial power demand recovers further

Spain's industrial electricity consumption continued to recover in September, when the year-on-year fall was the smallest in over two years, data from grid operator REE show.

Industrial power demand fell by 2.3pc on the year in September, recovering from year-on-year falls of 7.7pc in August, 8pc in July, 9.3pc in June, 14.1pc in May and a record 24.3pc in April, REE's IRE index shows.

September's decline is the lowest since 1.8pc in June 2018. Industrial demand has now fallen for 29 straight months since May 2018 — the longest unbroken downward trend since the index launched in 2010.

September's figures "confirm the process of economic ... reactivation, following the devastating effects of the pandemic", REE said yesterday.

But demand in the services sector — more exposed to Covid-19 restrictions, REE notes — fell by 10.1pc in September, accelerating from an 8.8pc reduction in August, but slowing from the 12.7-23.7pc declines of April-July. The tourism industry was particularly hard hit in September, with a 46.2pc drop in power demand, accelerating from falls of 36.9pc in August, 41.5pc in July and 41.7pc in June.

Consumption by medium-sized and large industrial and service sector firms was down by 4.2pc in September, the smallest decline since 3pc in February.

Weather-adjusted Spanish peninsular demand fell by 4.2pc on the year in September to 19.36TWh, compared with a 3.3pc fall in August, REE data show.

The IRE index measures demand from customers with more than 450kW of contracted power — these make up 47pc of Spanish demand. Figures are adjusted for temperature and working days and are not conclusive until 10 months after the period in question.

By Juan Weik