Updates Energy 1-2012

The new legislation is contained in Royal Decree-Law 13/2012, of March 30, 2012, transposing measures concerning domestic electricity and gas markets and electronic communications, and adopting measures to remedy diversions for gaps between the costs and revenues of the electricity and gas industries, which was published on March 31, 2012 in the Official State Gazette, and came into force on the following day, April 1, 2011.

This newsletter describes the new measures brought in to correct the revenue/cost gap in the electricity and gas systems. The Royal Decree contains other measures to transpose EU
directives on the electricity and gas industries and electronic communication industries which will be addressed in separate newsletters.

1. THE CONTEXT FOR THE APPROVAL OF ROYAL DECREE-LAW

2. ELECTRICITY INDUSTRY

2.1 Measures aimed at reducing the costs of activities and regulated costs of the
electricity system
2.1.1 Remuneration of electricity distribution activities
2.1.2 Remuneration of electricity transmission activities
2.1.3 Measures in the island and nonmainland electricity systems
2.1.4 Treatment of surplus funds at the CNE and at the IDAE as computable
2.1.5 Planning of the electricity transmission grid
2.1.6 Application of the guaranteed supply restriction mechanism
2.1.7 Reduction in payments for capacity
2.1.8 Remuneration for the interruptible service
2.1.9 How the system operator is to be financed
2.2 Measures targeted at increasing the electricity system's revenues

3. GAS INDUSTRY

3.1 Measures aimed at correcting diversions due to gaps between the costs and revenues
of the gas industry
3.1.1 Change in remuneration for basic natural gas underground storage facilities
3.1.2 The halting of procedures relating to new regasification plants on the Spanish
mainland
3.1.3 The halting of administrative permits for new transmission gas pipelines and

3.2 Measures aimed at increasing the gas system's revenues