December 2, 2020

Competition softens the ax to energy in more than 1,500 million

Step back from the National Commission of Markets and Competition (CNMC) in its cut to the remuneration of energy. The threat of a legal battle with unforeseeable consequences, the allegations presented and the intermediation of the Ministry for Ecological Transition, which did not hide its discrepancies with the regulator – which it blamed for invading part of its powers – has made it reflect The entity headed by José María Marín Quemada, which has revised downwards its "ax" to the electricity and gas sector, to leave it at more than 1,500 million, a 34% cut with respect to the initial approach. This means leaving almost half the scissors raised in July to the remuneration received by electrical installations, gas pipelines and regasification plants, that is, that 4,450 million euros has remained at 2,940 million. The regulator has justified this decision after considering the "claims submitted by all parties involved." Thus, the electricity and gas sector will be able to face the bad results suffered by its companies in the stock market after the announcement of the CNMC last summer. According to the circular sent, Endesa and Iberdrola would see their electricity distribution reduced in global terms by 1,571 million euros for the period 2020-2025, an improvement of 754 million compared to 2,325 million in July. 4.7%, compared to 7% initially raised. As for Enagás, due to its remuneration for gas transportation and regasification of the period 2021-2026, the regulator has recalibrated its cut by 10.5%, from the initial 21.8%, or what is the same, of the more 1,400 million euros of his first communication to less than 700 million now. Finally, Red Eléctrica has also improved its remuneration rate in the case of electric power transport. Until 2026, the regulator has cut the previous scissor point by one point, reaching 7.2%, from 672 million to almost 100 million less today. Regulatory cuts have been made on the electric transport networks, which essentially affect Red Eléctrica – with 20% participation of the State through the Sepi -, and on those of gas transportation and regasification plants, which affect Enagás – in which the State has 5% -, to Reganosa – with shareholders of the Xunta de Galicia -, and BBG – where the Basque Government is present – the total "ax" that threatened all sectors with the proposal of The remuneration framework put on the table by the regulator in July exceeded 6,000 million euros, which with this correction will be greatly reduced. The CNMC has already issued ten these circulars – a step prior to its final approval before the end of the year. But it will be the State Council that defines the new regulation for the entire energy sector. The regulator has yet to address four other circulars: the one that affects the distribution of Naturgy's natural gas, that of Madrileña Red de Gas, that of Nortegás, that of Redexis or that of Gas Extremadura. The resolution taken will decide the future of many of your investments, frozen until you know what to expect.

. (tagsToTranslate) javier de antonio

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