Particle.news

CNMC Sets 6.58% Return for Spain's Power Networks Through 2031

The regulator narrowed incentives in response to a Council of State opinion, leaving which projects qualify to be defined by a forthcoming royal decree.

Overview

  • The CNMC approved a 6.58% financial return for transmission, distribution and system operation for six years, raising the prior 5.58% rate and falling short of utilities’ calls for more than 7%.
  • Regulatory sources estimate the decision will add about €2.0 billion to consumer bills over six years, which they say would have been roughly €900 million higher under a 7% rate.
  • The revised methodology recognizes audited network investments up to 0.13% of GDP and limits a “sustainability” mechanism to demand‑driven projects set out in a pending royal decree on network plans.
  • Adjustments follow a Council of State finding that incentives require explicit legal backing, with the CNMC stating it incorporated the opinion into the final rules.
  • Industry groups criticized the package and some CNMC council members filed dissents, with the rules slated for publication in Spain’s official gazette in the coming days to take effect on January 1.