Banco Sabadell | According to press reports, yesterday the Council of State opened the public hearing period (until next Monday) for submitting comments on the National Commission on Markets and Competition’s (CNMC) proposals on the methodology for calculating distribution remuneration and the financial remuneration rate for distribution and transmission networks. On the other hand, the Ministry for Ecological Transition has backed the CNMC’s proposal to raise the financial remuneration rate (TRF) for electricity distribution to 6.58% from the current 5.58%, but calls for upward adjustments to reflect the higher risk of new investments. It considers that it should not be equated with that of transport, which does not assume risks, and suggests increasing the Beta parameter to attract capital.
Assessment: News with little impact, as the Ministry’s indications on the proposed circular were already known. On the other hand, we would like to point out that, despite the delays seen, the circulars must be published in the Official State Gazette before the end of the year in order to come into force on 1 January and avoid extensions of the current regulations. An improvement in the TRF would be positive for everyone, but would mainly affect Redeia and Endesa. Any change would have to be decided by the CNMC.
