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Policy & Regulation

Spanish utilities face revenue cuts

Spain’s competition regulator has proposed cuts to the fixed revenues for electricity and gas distributors. Major utilities fear these cuts could scare away investors Spain’s competition regulator has proposed cuts to the fixed revenues for electricity and gas distributors. Major utilities fear these cuts could scare away investors.
By Anna Gumbau 11 July 2019 Europe & Russia / Policy & Regulation 0 34385
Gas pipeline construction in Spain. (Gas Natural Fenosa)

The key issue: Spanish competition regulator the CNMC last week proposed severe cuts to the fixed revenues on fees earned by Spain’s gas and power distributors, saying the government has been “too generous” with its allowances in the past.

Interfax analysis: Cuts to fixed revenues earned by Spanish energy utilities represent a major blow for the companies. Under the proposal, announced by competition regulator the CNMC, fixed returns on transmission and distribution tariffs will be reduced by 21.8% and 27.8% respectively from...