Red Eléctrica de España will submit proposals in coming days for the draft Royal Decree setting the remuneration for electricity transmission starting in 2015. The text was forwarded on Monday to the National Energy Commission, and a period during which sector stakeholders will be able to submit comments was initiated. The aim of REE's proposals is to present alternatives for improving the text that regulates electricity transmission in Spain, within a framework of an open, broad-based process of dialogue and discussion.
On 15 July, as it is required to do, the Ministry of Industry forwarded to the National Energy Commission, among other documents, its proposed tariffs for the second period of 2013 as well as its proposal for the Royal Decree setting remuneration for transmission starting in 2015, and the Commission conducted a hearing for the sector stakeholders.
As is set forth in the proposed Ministerial tariff order, the tariff for the second period of 2013 envisions a €75 million reduction in REE's transmission revenue. In addition, the document will make the tariffs for 2008 to 2011 definitive and set the standard amounts for capex, opex and maintenance for facilities belonging to non-mainland systems. This translates into adjustments to the balances for several items during this period which were indicated in the Company's financial statements during the aforementioned years.
Although the definitive clarification of some parameters in accordance with Royal Decree-Law 9/2013 is still pending, the Company's estimate of the transmission tariff is about €1.6 billion in 2014.
Consequently, in both cases, the information received ratifies the estimates contained in the communiqué released by the Company early Monday. The new remuneration for 2013 and 2014 will be definitive for both years, notwithstanding the possible approval of the amounts corresponding to the availability bonus and the remuneration for capex, opex and maintenance associated with the one-off investments at a later date.
As noted, the draft Royal Decree establishing a methodology for the future remuneration of electricity transmission, to be reviewed every six years, has also been received. The highlights of this draft are:
An initial reading of the draft Royal Decree and of the statements made in recent days by the Minister of Energy leads to the conclusion that:
The entire dialogue and allegation process is intended to ensure the development of electricity transmission in order to guarantee supply security and defend the interests of our shareholders at all times.