Banco Sabadell | Both energy companies are reportedly pressuring Minister Carlos Cuerpo to intervene with the National Commission on Markets and Competition (CNMC) and modify the proposed remuneration for electricity networks. Thus, although the CNMC’s current proposal for a financial remuneration rate of 6.46% would exceed the current legal maximum of 5.58%, the law allows this limit to be exceeded for justified reasons and with an express report from the Executive, which must now decide whether to accept the CNMC’s proposal or request an upward revision.
Assessment: Positive news, but with little impact until we see the CNMC’s new proposal after all the pressure received from the electricity companies and the government. The current proposed financial remuneration rate (6.46%), despite exceeding the legal limit, would be far from the minimum required by distributors (7/7.5%) to carry out the necessary investments.
