Government turns up the heat on GESA over power

While the Balearic business community is none too impressed with gas and electricity company GESA, neither is the Balearic government. Yesterday they asked GESA's parent company ENDESA to speed up its Balearic investment programme and provide a written guarantee that 75.000 million pesetas will be spent on improving the region's power supply. Balearic Energy Minister, Misericordia Ramon, warned that bringing on the four gas turbines at Son Reus will not be able to guarantee power supplies as the amount of power they will be able to generate is the same as the jinxed Es Murterar power station in Alcudia. The Balearic goverment's demand yesterday is also accompanied by a very serious threat. If ENDESA cannot provide written assurances that it will make the necessary investments, the government is prepared to put the Balearic electricity contract up for tender. Ramon said “there is a theoretical agreement that GESA will make the necessary investments, but we want that in writing -if GESA does not comply, the government will put the contract up for public tender in order to put the energy plan in operation.” Ramon added that at the start of this month GESAsaid that it cannot guarantee the necessary investments in the Balearics.