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Policy & Regulation

Spanish energy reform puts role of gas at risk

The proposed cuts to fixed revenues from transmission and distribution tariffs may hamper investments in gas networks and renewable gases The proposed cuts to fixed revenues from transmission and distribution tariffs may hamper investments in gas networks and renewable gases.
By Anna Gumbau 10 October 2019 Europe & Russia / Policy & Regulation 0 34670
The Castelnou Energia gas-fired power plant in Spain. (GDF Suez)

Spain’s competition regulator, the CNMC, approved on 9 October the final proposal for a controversial reform of the country’s gas and power sectors by the end of 2019. Key to the changes are drastic cuts in the fixed revenues gas utilities earn on transmission and distribution tariffs, a move opposed by both the energy industry and the Spanish government.

Fixed returns on gas transmission tariffs will be reduced by 21.8% each year between 2021 and 2026, while returns on gas distribution tariffs will be...