July 9, 2020

The CNMC proposes to reduce the toll charged for the transport of light by 5.6% | Economy

The plenary session of the National Commission of Markets and Competition (CNMC) has agreed to submit to the State Council the draft circular that establishes the methodology for the calculation of the tolls for transportation and distribution of electricity, which raises a reduction in consumer tolls by 5.6% on average, depending on the group. Tolls are the contribution that consumers have to pay to cover the costs incurred by electricity companies for transportation and distribution activities. The remuneration that electricity companies receive together amounts to 7,000 million annually.

This draft circular establishes the methodology to determine the annual calculation of the tolls of transportation and distribution of electricity for consumers; the self-consumers for the energy demanded from the network and for the self-consumed energy in the case of nearby installations; the generation facilities for their own consumption and the exchanges of electrical energy that are carried out in countries not members of the European Union.

Regarding the version submitted to the hearing procedure, this document incorporates as main modifications the simplification of the tolls structure applicable to domestic consumers, maintaining six periods for the rest of consumers including low voltage SMEs. In addition, it introduces a variable price structure for domestic consumers, in order to laminate the impact of the methodology on smaller consumers.

Likewise, the payment of transport and distribution tolls to pumping facilities and storage facilities connected directly to the network is exempted and an optional toll for supply points dedicated exclusively to the recharge of public access electric vehicles is introduced.

It also emphasizes that the penetration of the electric vehicle will be facilitated and efficient consumption and electrification of the economy will be encouraged, without this implying a barrier to the aggregation of consumption, the penetration of self-consumption and participation in the demand response.

The agency emphasizes that this draft circular is consistent with the requirements established in the "Clean Energy for all Europeans" package and reflects good regulatory practices in establishing the methodology for setting transport and distribution rates.

Operator Compensation

In addition, the CNMC has approved the circular establishing the remuneration methodology for the operator of the electrical system, Red Eléctrica de España, with a maximum increase of up to almost 29%. This circular establishes the methodology for the remuneration of the system operator from 2020 to 2025. Additionally, the duration of the regulatory periods for this activity and the method of financing the remuneration of the system operator are fixed, by means of the prices that affect the agents. , its collection and settlement.

As a result of this methodology, the annual remuneration for the 2020-2022 regulatory period is between 71.8 million euros (in a scenario of minimum incentive compliance) and 74.6 million euros (in the case of maximum incentive compliance). Without considering incentives, the annual remuneration is 73.2 million euros. The annual remuneration of the system operator in 2019 was 58 million euros. Therefore, the remuneration resulting for the period 2020-2022 represents a minimum increase of 13.8 million and a maximum of 16.6 million. In relative terms, the minimum increase would be 23.8% and the maximum, 28.8%.

This circular partially compensates for the reduction in the remuneration for transportation approved last week. The main novelty is to establish in a standard a model for the remuneration of the system operator, giving transparency and legal certainty to the system operator and consumers who bear the cost of their activity, says the CNMC. This methodology is essential for the system operator to plan their investments and organize their medium-term cost structure since it allows them to recover their costs and receive a return.

Regulatory periods of three years are established, half of the six-year period established in general for regulated activities. Thus, the next will include the exercises 2020 to 2022, both inclusive. Another novelty introduced by the proposed norm is the incorporation of an incentive remuneration tranche. In this first period, the actions directed to the reduction of the energy programmed by technical restrictions, the improvement of the demand forecast and the improvement of the forecast of the production of wind and photovoltaic energy are rewarded.

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