Tue. Oct 22nd, 2019

The Government avoids positioning itself in the open war between CNMC and energy

The Government does not want to position itself in the open war between the National Commission of Markets and Competition (CNMC) and the energy companies following the proposal in which the regulator asks to cut the retribution to electricity and gas.

The Acting Minister of Economy and Business, Nadia Calviño, in an interview given on Thursday to Onda Cero, recalled that the CNMC proposal is "a circular in a public hearing" and not a final regulation that will not arrive until the end of summer when "what is taken into account by all parties interested. "

he has advocated because the remuneration of electricity networks reflects an "adequate balance" that allows lower costs for the consumer but "is sufficient to maintain investments."


Balance between compensation to companies and cost to customers

In the opinion of the Minister of Economy, the objective is to work so that there is an "adequate balance" between the lowest possible costs so that the citizen has the most adequate prices for electricity and gas and that there is no "over-compensation" for companies, but that the remuneration is "sufficient" for the investments. "An adequate balance between efficiency gains and stability for operators" to undertake investments in networks of the future, has riveted.

Teresa Ribera, owner of the Ecological Transition portfolio, has shown a similar prudence. After opening a forum on the Challenges of the Electric Car, she told reporters that the Government is studying the proposal of the CNMC to see if it is compatible with the electrification forecasts contemplated by the Executive and that "Spain has a modern energy at a reasonable cost".

The president of Naturgy, Francisco Reynés

The president of Naturgy, Francisco Reynés
(Emilia Gutiérrez)

Ribera also pointed out that the statements of the president of Red Eléctrica de España (REE), Jordi Sevilla, in which he warned that cuts in compensation would jeopardize compliance with the objectives of the Integrated National Energy and Climate Plan (PNIEC) of the Government in terms of decarbonisation of the economy, do not reflect the Government's opinion. "The president of Red Eléctrica will know what he says; He speaks for his company and not on behalf of the Government. "

Regarding Naturgy's announcement of paralyze your investments in new gas infrastructures, Ribera commented that "Naturgy is a company that has a vocation to stay in the long term in the Spanish energy landscape, so we must take into account their considerations" in the face of a future report that the Government will present soon taking into account all parts.


Fitch puts companies in the sector under review

In this environment, the risk rating agency Fitch has issued a note placing the affected gas companies -Enagás and Naturgy, in negative perspective- for the "increased regulatory risk since 2021" as it understands that the draft announced by the CNMC " includes a significant methodology change that reduces revenues for the sector that Fitch had foreseen for the period 2021-2026.

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