The rise in electricity prices began in 2021 and has been consolidated in 2022. Specifically, the average price of the electricity pool for May 23 is 194.16 euros/MWh. With the price of electricity touching the barrier of 200 euros per MWh, companies are still suffocated by energy costs, which leads to an inevitable price increase for the consumer. Even energy companies have been hit by this increase, which has led to a spike in insolvencies and bankruptcies.Specifically, 68% of companies will apply a price increase in 2022 as a "contingency measure" in the face of rising energy costs, according to the latest report 'Electricity sector in Spain', prepared by Solunion, which analyzes the outlook for the electricity sector in Spain. However, only 15% of companies are considering a production shutdown. This figure contrasts with the companies' good sales expectations. According to the Solunion survey, 59% believe that their sales will be maintained throughout the year, and 24% even expect an improvement.the companies surveyed have been affected by the volatility of electricity prices in the last quarter. Specifically, 65% of Spanish companies have not signed a PPA (Power Purchase Agreement) contract with long-term fixed prices, so they are more exposed to fluctuations.Regarding the gas market, the diversification of gas origins in Spain has helped to obtain an "acceptable level of security of supply." "In 2020, 10.3% of total Spanish imports came from Russia, a low position compared to the European average," explained Solunion. Despite this low Russian dependence, the average price has climbed from 18 euros per megawatt hour in 2020 to 300 euros on average at the beginning of March, with peaks of 600 euros.In parallel, regulatory bodies, both at European and national level, have approved urgent measures to alleviate the impact of the rise in energy prices. In this regard, on March 29, the Council of Ministers approved the anti-crisis plan to alleviate the effects of the war in Ukraine, whose measures are estimated at 16 billion. In Spain and Portugal, these measures have materialized, for example, through a temporary and extraordinary mechanism to lessen the impact of the price of natural gas on the configuration of the wholesale electricity market, setting a reference price of gas at around 40 euros/MWh and an average price of 50 euros/MWh during the 12 months of its validity.The number of insolvencies declared in the energy sector increased radically in 2021, accentuated especially in the second half of the year in parallel with the rise in the price of electricity. More specifically, there was an increase of 83% with 33 cases of insolvency.Likewise, the number of companies that have entered into insolvency proceedings in the energy sector has shot up by 117% at the close of the first quarter of 2022, to reach 13 insolvency proceedings. The number of insolvencies declared in the sector has experienced a sharp increase in the last two years, albeit of a one-off nature," explained Solunion Spain risk analyst and author of the report, María Ángeles Piñero. "We hope that with the new measures the situation will be regularized," she added.