A little over a year ago, the figure of Endesa’s CEO, José Bogas, grabbed the uncomfortable spotlight. The change in the management of Enel, the Italian power company owned 70.1% by the Spanish power company, placed him in the crossfire of power, despite the fact that his position had been confirmed until 2026. There was speculation with the possible change, but now, a year later, he has managed to reassert himself in the position.
In 2022, Giorgia Meloni was placed at the head of the Government of Italy and the remodeling in the domes of the country’s large public companies did not take long. In the case of the electricity company Enel, the bet was made by a man close to Matteo Salvini, his government partner. He chose 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, shoring up the energy supply”, point out sources familiar with the Italian business world.
Europe was facing the biggest energy crisis in its modern history and knowing how to handle it was key. José Bogas had done it successfully. Endesa’s profits in 2020 had risen by 36%, up to 2,132 million. In 2021, another 12%, up to 1,902 million, and a historic 77% in 2022, up 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 decarbonisation strategy. The new leadership of Enel, aligned with the Meloni Government, bet on gas in that geopolitical context. This position apparently left Bogas weak in Enel’s new approach. A weakness that jumped “interestingly” in the Spanish press, according to sources in the sector, and speculation about Bogas’ departure spread quickly. Enel did not take long to deny it. “The Italians are strategists. For them, Enel is part of the State, and states, especially the Italian one, attach great importance to international relations. In that context, Bogas was, and is, an asset that it was not interesting to do without. It meant assuming 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, as 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 the control of the business that Bogas has and in such a delicate moment for the energy sector as it was a year ago was not an easy task”, comment those who knew the Italian position at the time.
Endesa’s profits mean juicy income that Enel receives in the form of dividends. “Endesa is the jewel in the Italian crown. Risks, the fair ones”, they assure the sector. On average, it contributes 25% of Enel’s results, although in 2023 the winds have changed and the drop in gas prices, the limit on income and a court award against it will also pull down Endesa’s profits, until to 742 million, 71% less.
But, even beyond his knowledge of the sector and its management, what underpinned Bogas was good political relations. Cattaneo took possession of 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. The good relations with members of the Government that was formed after that electoral appointment played in his favor. “Bogas has a very affable character in general. He is an excellent PR. He gets along very well with Minister Teresa Ribera and President Sánchez, therefore, changing him made no sense”, confirm the sources consulted. The official support arrived at Enel’s shareholders’ meeting on November 22, 2023. “We do not want to change the leadership or the participation,” assured Cattaneo.
The possible departure of Pedro Sánchez is not a concern either. 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 Feijóo. It is not for nothing that his first job was linked to the As Pontes thermal power station and already at Endesa he has negotiated with the Galician Government for years its dismantling.
