Spain: Government strips CNMC of powers over electric sector

On 13 October, the Spanish government’s Council of Ministers approved a Royal Decree that will strip the country’s markets and competition regulator, the CNMC, from various of its powers over the energy sector, particularly over Electricity pricing.

The Secretary of State for Energy will assume the following functions included in the Law of the National Commission on Mercantile and Competition of June 4, 2013, which until now were carried out by the Commission: inspections and liquidations of the electricity sector (including renewable sources); supervision of the liquid hydrocarbon sector; biofuel certification systems; and merger control.

This action goes against the European Union Directive which states that this type of regulation must be carried out by an independent regulator. Indeed, the European Commission has opened infringement proceedings against Spain due to the government’s participation in the fixing of tariffs for access to the electricity system.

Full Content: Material Electrico

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