March 8, 2021

Competition proposes to cut the remuneration for electric distribution by 7% and gas by 17.8%

The National Commission of Markets and Competition (CNMC) has proposed a cut of 7% of the compensation received by companies for the distribution of electricity and close to 18% for gas in order to define a "stable" regulatory framework and rigorous "and appropriate to the business cycle.

Thus, the initial remuneration for the distribution of electricity will be fixed at 5,455 million euros per year, which means a cut of 7%; the transportation of electricity at 1,656 million euros per year, 8.2% less; the distribution of gas at 1,420 million euros per year, 17.8% less; and the transport of gas and regasification in 1,186 million euros, 21.8% less.

In this way, the regulator assumes the powers conferred by the community law on natural gas and electricity, after the approval by the Government of the Royal Decree Law last January so that it can issue regulatory circulars, just as they do and to the CNMV and the Bank of Spain.

These are seven additional circular projects that Competition will submit to public consultation, with a period of allegations that will extend until August 9, in order to enter into force before January 1, 2020.

This new criterion will allow a reduction of the tolls paid by consumers through the electricity bill, which will mean a reduction in the same, while guaranteeing a "reasonable" return for regulated companies.

From now on, these payments to electricity and gas will be conditioned by a technical criterion based on the WACC, a mathematical formula that calculates the weighted average cost of capital, responding to the criteria that the CNMC has maintained over the past six years. that "excessive" returns were being granted, especially in the gas sector, where there has been less investment.

. (tagsToTranslate) CNMC (t) trim (t) retribution (t) distribution (t) electric

Source link