A little over a year ago, the figure of the CEO of Endesa, José Bogas, monopolized some uncomfortable news spotlights. The change in the management of Enel, the Italian electricity company owned by 70.1% of the Spanish electricity company, placed him in the crossfire of power, despite the fact that his position had been confirmed until 2026. There was speculation about his possible change, but now, a year later, he has managed to reaffirm his position.
In 2022, Giorgia Meloni was placed at the head of the Government of Italy and the remodeling at the top of the country's large public companies was immediate. In the case of the electricity company Enel, the bet was a man close to Matteo Salvini, his government partner. He elected Flavio Cattaneo as CEO, accompanied by Paolo Scaroni as president. Both had been directors of Enel. “Knowledge of the sector and the company were key. Italy, like the rest of Europe, had a strategic concern, to shore up energy supply,” say sources familiar with the Italian business world.
Europe was facing the biggest energy crisis in its modern history and knowing how to manage it was key. José Bogas had done it successfully. Endesa's profits in 2020 had risen 36%, to 2,132 million. In 2021, another 12% to 1,902 million, and a historic 77% in 2022, to 2,541 million, driven by the escalation of gas prices.
But Bogas was identified as the right-hand man of Francesco Starace, the outgoing CEO, and as a defender of Endesa's decarbonization strategy. The new Enel leadership, aligned with the Meloni Government, was betting on gas in that geopolitical context. This position left Bogas apparently weak in Enel's new approach. A weakness that was “interestedly” reported to the Spanish press, according to sources in the sector, and speculation about Bogas' departure spread quickly. Enel was quick to deny it. “Italians are strategists. For them, Enel is part of the State and the states, especially the Italian one, give a lot of importance to international relations. In that context, Bogas was, and is, an asset that we were not interested in doing without. "He was taking an unnecessary risk," say sources close to the Italian business world.
Among the assets of the 69-year-old industrial engineer from Madrid is his extensive knowledge of the company, given that he had been working at Endesa for 42 years and a decade as CEO. Keeping Bogas in Spain meant ensuring the stability of a strategic subsidiary for Enel. “No one is essential. But finding a replacement with control of the business that Bogas has and at a time as delicate for the energy sector as the one a year ago, was not an easy task,” say those who knew the Italian position at that time.
Endesa's profits represent succulent income that Enel receives in the form of dividends. “Endesa is the jewel in the Italian crown. Risks, the fair ones,” they say in the sector. On average, it contributes 25% of Enel's results, although in 2023 the winds have changed and the fall in the price of gas, the cap on income and a judicial ruling against it will also bring down Endesa's profits, until 742 million, 71% less.
But even beyond his knowledge of the sector and its management, what supported Bogas were his good political relations. Cattaneo took office at Enel, at the meeting on May 10, and shortly after the call for general elections in Spain was launched. “It was not the time to touch anything,” explain the business strategists. Good relations with members of the Government that was formed after that electoral event played in his favor. “Bogas has a very affable character in general. He is an excellent public relations person. He gets along very well with Minister Teresa Ribera and President Sánchez, so changing him did not make sense,” confirm the sources consulted. Official support came at the Enel shareholders meeting on November 22, 2023. “We do not want to change the leadership or the participation,” Cattaneo assured.
The possible departure of Pedro Sánchez is also not worrying. Bogas was one of the guests at the wedding of the mayor of Madrid, the popular José Luis Almeida, and is also very close to the leader of the PP, Alberto Núñez Feijó. It is not in vain that his first job was linked to the As Pontes thermal power plant and, already at Endesa, he has negotiated with the Galician Government for years about its dismantling.
