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Spain: MTE reveals possible ‘overreach’ in CNMC proposal for the energy sector

 |  July 29, 2019
The Ministry for Ecological Transition under minister Teresa Ribera has prepared a report regarding the proposals made by market regulator CNMC regarding changes to methodologies for the remuneration of gas and electricity networks, which would cause strong cuts for distribution companies in this field, and whose publication has caused uproar in the sector.

While the MTE expresses itself in favor of “the spirit” of the proposals presented by the competition regulator regarding the remuneration granted to electricity and natural gas networks, the ministry considered calling the Coordination or Conflict Commission to evaluate the documents issued by the CNMC, since it considered that said announcements would be overreachng, taking over actions that correspond to the central Government, and not to an autonomous body such as the CNMC.

Specifically, the MTE sees a conflict of competences in energy planning, referring to the fact that only investments in networks that have been authorized in the energy planning that corresponds to the central government would be paid. In addition, the MTE ruled in favor of the electric distributors when commenting that modernization of the networks should be encouraged, reviewing the parameters on which the remuneration rates are calculated. He also warned the CNMC about the possible financial damages that the plan could cause.
Full Content: El País

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