Power outage costs Iberian economy $1.7 billion, sparks criticism
The president of the Spanish employers' organization CEOE, Antonio Garamendi, estimated that the power outage, which affected the Iberian Peninsula on Monday, will cost the economy about 1.6 billion euros (approximately $1.7 billion), or 0.1 percent of the gross domestic product.
Garamendi emphasized the scale of the problems caused by the outage. He noted that refineries will need weeks to restore full functionality and that blast furnaces may have suffered significant damage. "It's a huge impact on the economy," said the head of the employers' organization during a conversation with journalists.
Regarding possible compensations, the leader of Spanish entrepreneurs suggested that the responsibility for payouts might lie with the insurance policies managed by the Consorcio de Compensación de Seguros. However, he noted that the details are still being analyzed.
Criticism of government actions after the outage
The CEOE president did not hold back criticism towards the Spanish government for its communication approach during the crisis. In his opinion, authorities should have reacted faster and ensured a continuous flow of information for citizens and businesses. "The government should have acted more efficiently and informed the public continuously," Garamendi said.
He expressed particular dissatisfaction with the statement from the Ministry of Labor, which declared that employers must bear the costs of employee absences caused by the outage. The head of the employers' organization added that they don't need such instructions because they know perfectly well what to do out of sheer social responsibility, which they constantly demonstrate.
The massive power outage, which occurred at about 6:30 AM Eastern Time on Tuesday, caused serious disruptions in transportation and the daily functioning of residents and businesses on the Iberian Peninsula. The problem affected both the mainland of Spain and Portugal.
According to the latest data, by 2:00 AM Eastern Time the following day, nearly complete power was restored—99.95 percent of electricity demand was recovered in the Iberian Peninsula area. Specialists are still working to determine the exact causes of this unprecedented outage that paralyzed two countries.
