New methodologies for tolls and charges It is due to the users connected at their own tariff voltage level and to the For the power term, the historical power balance of the last available year is used, at the hour of maximum demand for each period, according to the table in Figure 2. Similarly, for the energy term, the historical balance of annual energy for each period is used. users connected at lower voltage levels. Second, the forecast is used, for the year of application of the tolls, of the contracted powers and of the energies demanded, by voltage level and by period. Figure 2. Peak demand time of each of the time periods Finally, the prices (A / B) are obtained, dividing the assigned cost matrix (A) by the forecast matrix (B) for 2021. The result can be seen in Figure 3. Case of domestic consumers So far it is the general scheme. The CNMC makes a modification for consumers with equal contracted power Source: CNMC Figure 3. Toll prices for 2021 (according to 5 voltage levels and 6 hourly periods) Source: CNMC Energy Notebooks 65 Translated from Spanish to English - www.onlinedoctranslator.com New methodologies for tolls and charges Figure 4. Definitive tariff groups for tolls Source: CNMC or less than 15 kW, simplifying the 6 periods. Establish a toll category, which rest of tolls 6.1 TD, 6.2 TD, 6.3 TD and 6.4 TD (who already had 6 periods). • At the end of peak period power the joint price of periods 1 to 5 is assigned, leaving the price of period 6 for the valley period 14 . This low price of the valley period facilitates the contracting of higher powers in this period, in the case of equipment to recharge the electric vehicle fifteen or energy accumulators. It is identified as 2.0 TD, which corresponds to the NT0 voltage level with contracted power equal to less than or less than 15 kW. In Figure 4 you can see the general table that identifies the 6 categories of final tolls. The next toll category, the 3.0 TD differs from the 2.0 TD only in The toll corresponding to the rate level 2.0 TD is reduced from six periods to two: peak that has a higher contracted power to 15 kW. For this toll, the discrimination of 6 periods is maintained (expanding its previous three), the same as for the and valley for the power term and three: tip, flat and valley, for the energy term, applying the following criteria: • A conversion is applied to the billing of the energy term according to the table in Figure 5. Figure 5. Conversion coefficients from six to three periods Source: CNMC 14 The contracted power in all periods is considered constant, which is quite reasonable, at least initially. 15 It should be noted that this regulation refers to the private recharging of electric vehicles. Public access supply points they have a specific treatment that is outside the scope of this article. 66 Energy Notebooks New methodologies for tolls and charges So the valley period maintains the The CNMC methodology finally adjusts the prices to achieve a 75% / 25% distribution between the fixed term and the variable term in the 2.0 TD rate level and re- It also touches some prices to smooth out irregularities, so that the general table that identifies the 6 definitive tolls remains price of period 6, while the prices of the flat and peak periods show a mixture of the rest. as can be seen in Figure 6. Figure 6. Toll prices for 2021 (according to 6 tariff groups) Fixed term Variable term Source: CNMC Energy Notebooks 67 New methodologies for tolls and charges Internal structure of toll prices The prices of periods 5 and 6 are the same and they grow as we approach the peak period, for which the prices This strong price discrimination should have the result of stimulating the transfer of consumption from the tip to other periods, discouraging the use of networks in It is interesting to analyze the internal structure prices are several times higher than the of the price matrices, to see something valley, although the concrete value depends periods of greater demand for the electricity system where the probability of grid saturation is higher. more than a set of numbers. 16 of the rate group. If prices are taken as a reference Thus, for example, for the 2.0 TD this ratio is 24 for the fixed term and 38 for the variable term. of the valley period, the result is that of Figure 7. 17 In the long run, if this dynamic occurred towards a more balanced consumption per person, Figure 7. Toll price ratios for 2021 (relative to the valley price) Source: Own elaboration with data from the CNMC 16 To facilitate comparison in the 2.0TD tariff level, the two power periods have been placed at P1 and P6 and the three periods for the energy in P1, P2 and P6. 17 A similar exercise, taking a rate level as a reference, does not provide a further clarification of the structure except to verify that prices decrease as the level of tension increases, although with much tighter ratios. 68 Energy Notebooks New methodologies for tolls and charges river and better use of the te, which can be seen in Figure 8: RECORE (special remuneration for renewables, cogeneration and waste), annuity He also chooses a dual cost allocation model, with a fixed term and a variable term. networks, the methodology would lead to lower toll prices and smoother discrimination. of the deficit and compensation of systems not Allocation criteria peninsular. 18 Methodology for charges However, and here is the great difference with the CNMC methodology, the criteria Altogether, the charges amount to € 6,500 million The MITERD methodology for charges for the year 2021, a figure very similar to the € 6,859 million from tolls. Rios of allocation to consumers are not based on quantifiable realities, but are established based on two types of estimates: follows a very similar calculation process, although, as we will see, the allocation philosophy is completely different. MITERD has maintained the same structure of rate levels and the same Identification of network costs periods defined by the CNMC for tolls. This simplifies its understanding, the consumer would hardly understand a double classification. • contribution to energy policy objectives. The process begins by identifying the costs to be covered and these are, fundamentally, • the price elasticity of consumers (Ramsey prices). Figure 8. Toll prices for 2021 (relative to the price of the 3.0 TD tariff level) Source: Own elaboration with data from MITERD 18 The gross costs of the charges actually amount to € 9,600 million, however, the difference with the net € 6,500 million is financed by income external: Law 15/2012 and CO rights auctions 2 19 Report on the analysis of the regulatory impact of the royal decree establishing the methodology for calculating the charges of the system electric. Energy Notebooks 69 New methodologies for tolls and charges Figure 9. Impact of various alternatives on the different energy policy priorities Source: MITERD In Figure 9 you can see the table, prepared by the Ministry, with the impact of you and accumulate more positives. They correspond to a dual assignment, with 40% Allocation criteria various alternatives on priorities in power and 60% in energy (which is The quantitative process is taken up in a completely similar way to that followed by the CNMC, although with some nuances: energy policy 19 transforms into 25% and 75% for the rate level 2.0 TD). The table evaluates, by means of faces of different color, the relationship of the criteria of The division also wants to approximate a Ramsey price sharing of costs. According to this methodology, the allocation of sunk costs between different consumers that distorts the global electricity demand the least, is one that allows • the final structure is used directly cost allocation (horizontally) on of toll levels and periods of the CNMC. That is, with the 2.0 TD level (two periods in power and three in energy) differentiated from the 3.0 TD level (six periods) certain energy policy objectives (vertically). Red side would mean negative impact, green side positive impact, other colors intermediate impacts. allocate those costs proportionally less to those consumers more sensitive (more elastic) to a price increase. • the forecast data for power and energy demanded by toll level and period do not coincide with those used by the CNMC twenty After analyzing various criteria, the Ministry opted for a mixture of the last three, as they are the ones that avoid negative impacts 20 For consistency, the data used by the CNMC and MITERD should coincide. 70 Energy Notebooks New methodologies for tolls and charges Figure 10. Charge prices Source: MITERD The final result, adjusting by trial and error the matrix of sensitivities that best suits The prices of the periods are growing nificant price discrimination with with the same ratio as we approach target analog, stimulate transfer you to the desired objective, are the prices that the peak period, which corresponds to a lower elasticity of consumers. from peak consumption to other periods. can be seen in Figure 10. Internal structure of charge prices The 2.0 TD rate group presents slight di- This effect intensifies at the end of differences, reaching a peak / valley ratio energy of the tariff group 2.0 TD, incentivized of 15.55 in the term of power and of varying consumption in the flat and valley periods. Regarding the power term, the stimulus is maintained, already seen in the In a similar way to the analysis carried out for tolls, Figure 11 presents the ratios 20 in the energy one. of the charges taking as reference the prices of the valley period twenty-one Similar to the tolls methodology, the charges methodology establishes a tolls, to the hiring of higher powers in the valley. 21 Taking the prices of a tariff level as a reference, the ratios reveal a greater elasticity as the level of tension increases. Energy Notebooks 71 New methodologies for tolls and charges Figure 11. Charge price ratios for 2021 (relative to the valley price) Source: Own elaboration with data from MITERD Set tolls and charges Figure 13 presents the charge ratios taking as reference the prices of the valley period. • The power term, with a peak / valley ratio of 66, reflects the joint stimulus of tolls and charges for hiring higher powers in the valley. Once both methodologies have been seen, all that remains is to add the prices obtained for the tolls and for the charges to obtain the resulting joint prices. See Figure 12. The prices of the periods are growing with more or less similar ratios depending on • The energy term, with a ratio we are approaching the peak period, which corresponds to a lower elasticity of consumers. punta / llano / valle of 7/22/1 also reflects the common objective of stimulating the transfer of consumption from the tip to the plain and to the valley, decongesting the networks at times of greatest demand. Internal structure of the prices of tolls and charges In a similar way to the analyzes carried out The 2.0 TD rate group presents slight differences. separately for tolls and for charges, the 72 Energy Notebooks New methodologies for tolls and charges Figure 12. Tolls and charges prices Source: CNMC and MITERD But it should be noted that the influence of both terms on the electricity bill is uneven. throughout the year for each hourly period, the second varies hourly as it is obtained price of tolls and charges, that of energy and the resulting sum of the two. has the electricity market and adjustment services. The result is that the effect of high toll price discrimination Also the ratio of those prices taking the valley price as a reference. The fixed term of the invoice constitutes it, practically in its entirety 22 , the fixed term of tolls and charges. and charges are moderated considerably by the lower discrimination of the cost of energy. The strong price discrimination per period in tolls and charges (22.2 times in peak and 7 times in flat with respect to the price in the valley) is greatly reduced by the almost null discrimination in the prices of However, the variable term of the factor This is the case, for example, in June 2021, the first after the application ture is made up of tolls and charges for one side and the cost of energy on the other and while the first remains constant tion of the new tolls and charges. Figure 14 shows, by period, the energy (1.1 times at the top and 1.1 times on the flat with respect to the price in the valley). 22 In regulated contracting PVPC represents 91%, the rest is the fixed margin of commercialization, also regulated. Energy Notebooks 73 New methodologies for tolls and charges Figure 13. Toll and charge price ratios for 2021 (relative to the valley price) Source: Own elaboration with data from the CNMC and MITERD For the price of energy, the periods do not necessarily imply a certain ratio structure and the same happens for the price of the variable term of the invoice, which in the June example can be seen to present a softer price discrimination (2, 3 times pointed and 1.4 times in the flat compared to the price in the valley), sufficient in any case to encourage the consumer to transfer, as far as possible, consumption from the peak period to the flat or valley periods. Figure 14. Prices of the variable term Source: self made 2. 3 23 Taken from the article Have you received the new electricity bill ?, José Luis Sancha.ANALES. June 2021. https://www.icai.es/articulo-revista/ Your-new-electricity-bill-has-arrived / 74 Energy Notebooks New methodologies for tolls and charges Conclusions Finally, there are methodologies for For domestic consumers, tariff The impact on the bill of tolls and allocation of tolls (CNMC) and charges 2.0 TD, the periods are simplified to three charges is very different. The fixed term of the invoice is practically all tolls and charges, but the term (MITERD). It can be more or less in energy and two in power. agree with them, but having them is undoubtedly a great advance that will allow improvements in the future. The toll assignment methodologies and variable of the invoice is composed of of charges opt for a dual model through a fixed term (power) and a variable term (energy). Dif- one part, of tolls and charges and, on the other, of the cost of energy, this being higher and with less discrimination. The application of these methodologies does not modifies the costs to be financed by the nevertheless, in the weight they assign to nation than tolls and charges. The effect tolls and charges, but only represents a new distribution model between both terms, as a consequence of the difference in the distribution criteria chosen. set is one less discrimination charged than that of tolls and charges and very dependent on the result of the electricity market in each hour. n consumers, more in tune with the energy transition period of the The joint prices of tolls and charges present a strong price discrimination per period, increasing from the valley period to the peak period. Thus, for example current era. This article follows the discursive thread of an informal talk held with the technical team of the Club Español de la The entire allocation structure is tempts in a time discrimination of 6 periods and 5 levels of tension, which finally ends up being structured in 6 groups For example, in the 2.0 TD rate group the ratio of Peak / valley price is 66 in the power term and 22 in the energy term. In the rest of the tariff groups, discrimination Energía, to which I thank for his interest in unraveling the new regulation of tolls and charges, his valuable co- tariff rates as the level of low voltage depending on the contracted power is greater or less than 15 kW. Price per period is less pronounced, although it is still important. comments and your invitation to write this article. Energy Notebooks 75 Debt of the electricity sector and application of the system surplus Current situation and future forecasts Ana María Antona Díaz Henar Soto Tejero National Commission of Markets and Competition (CNMC) After more than a decade of results cio will end in equilibrium. The evolution 2000 and 2013 originated a total debt negative, the electricity sector obtained of deficits and surpluses of the system such accumulated whose pending amount for 5 consecutive years surpluses electrical power for the last 20 years collection amounts to 14,294.3 million euros as of December 31, 2020. The historical perspective regarding the origin of (from 2014 to 2018). However, in the shown in Figure 1. In fiscal year 2019, a deficit returned, and an application of the existing surplus had to be carried out so that the fiscal year On the one hand, the income deficits that this debt was already introduced in the article were generated in the sector between the years “The debt of the electricity system. Situation Figure 1. Deficits and surpluses of the electricity sector generated annually in the period 2000-2019 (million euros) Source: Law 24/2013 of the Electricity Sector; Settlements of regulated activities in the electricity sector (final from 2000 to 2019); Resolutions of October 2, 2007, and December 3, 2009, of the General Directorate of Energy Policy and Mines, which determines the review of the definitive specific costs destined to the compensation of the insular and extra-peninsular systems corresponding to 2001, 2002, 2003, 2004 and 2005, and 2006, 2007 and 2008, respectively. 76 Energy Notebooks Debt of the electricity sector and application of the system surplus. Current situation and future forecasts Figure 2. Evolution of the outstanding debt of the electricity sector as of December 31 of each year, by category of collection right, from its origin to its complete satisfaction (thousands of euros). Until 2020 the data are real and, as of 2020, they are forecasts Source: INF / DE / 006/21 of the CNMC. Agreement by which a report is issued on the current state of the debt of the electricity system. current and future perspectives ", published in aggregate of the surplus generated, they have The current state of the debt of the electricity sector is set out below, in terms of total amount, distribution by categories of collection and distribution rights number 48 of Cuadernos de Energía. applied, for different concepts, a total of 1,683.6 million euros. On the other hand, in 2014 there was again a surplus in the electricity sector. From This article discusses the current state by holders of said rights, as well as then, surpluses were obtained in the years 2015, 2016, 2017 and 2018, although each year with a smaller amount. The total amount of the debt of the electricity sector and its associated financing cost. Likewise, the evolution of the regulations that its evolution with respect to the previous year. Total amount of sector debt accumulated surpluses for these years amounted to 1,687.5 million euros. regulates the fate of system surpluses, electrical and distribution by categories specifying the destinations for which these have been used. Finally, they are analyzed collection rights Figure 2 shows the evolution of the debt In 2019, as mentioned the future forecasts of the electricity sector debt, from the point of view of the expected evolution of the debt already generated. data of the electricity sector over time, and from 2021 onwards, forecasts. As can be seen, this debt reached its maximum in 2013, with 28,771 million euros, and has been progressively decreasing since that date. Previously, there was a deficit again, which was offset by the balance of the surplus generated in previous years. In the year 2020, although the final settlement has not yet been made, a deficit is occurring again. To partially offset this, the accumulated surplus balance has also been used. In total, of the amount Update of the state of the debt of the electricity sector Based on the origin of the debt and the mechanisms established for its recovery, As of December 31, 2020, there were 4 categories of collection rights associated with the Energy Notebooks 77 Debt of the electricity sector and application of the system surplus. Current situation and future forecasts Figure 3. Amounts by category of debt collection right for the electricity sector as of 12/31/2019 and 12/31/2020 and year-on-year variation percentages Figure 4. Total amount of debt in the electricity sector as of 12/31/2019 and 12/31/2020 and breakdown by types of collection rights Source: INF / DE / 006/21 of the CNMC. Agreement by which a report is issued on the current state of the debt of the electricity system. state current debt of the electricity system. debt of the electricity system: the 2005 Deficit (which was settled on February 10 of the 2nd auction of the Ex ante Deficit, the collection rights of the 2013 Deficit and the As of December 31, 2020, the debt of the electricity system amounts to 14,294.32 million euros 1 , 13.90% lower than the total amount as of December 31, 2019 (Figure 3). 2021, charged to the 2020 quota), the collection rights of the successful bidders Collection charges from the Electricity System Deficit Securitization Fund (FADE). 1 The calculation of the debt balance follows the accrual criterion. Therefore, the interest accrued up to 12/31/2020 and the annual This amount will be satisfied with a charge to the 2020 settlements (including those that have not yet been made). In the case of the 2005 Deficit, the cash criterion has been considered, since the date of 12/31/2020 is close to its complete satisfaction and this fact is more relevant. 78 Energy Notebooks Debt of the electricity sector and application of the system surplus. Current situation and future forecasts The collection right associated with FADE represents, as can be seen in Figure 4, 84.1% of the total amount pending collection at 12/31/2020, followed by the right to collect the 2013 Deficit, with 14.1%. Figure 5. Amounts pending collection, current interest rates and number of annual payments pending for each of the categories of collection rights as of 12/31/2020 Distribution of electricity sector debt by holders of collection rights Figure 5 shows a summary of the status of each of the collection rights related to the debt of the electricity sector as of December 31, 2020, in terms of their amounts pending collection, number of annual payments pending and applicable interest rates. in each case for the year 2021. By type of holders of the electricity system collection rights as of December 31, 2020, 84.1% corresponds to FADE, 10.8% is in the hands of financial entities, 3.0% corresponds to foreign securitization vehicles and the remaining 2.1% to ICO (Figure 6). Note: The interest rate for 2021 of FADE is the one available with data as of 12/31/2020. Source: INF / DE / 006/21 of the CNMC. Agreement by which a report is issued on the current state of the debt of the electricity system. Figure 6. Distribution of the electricity sector debt as of 12/31/2020 by type of collection rights holders Financing cost of the debt of the electricity sector The repayment of the debt of the electricity system implies, for each of its categories of collection rights, the payment of an annuity to the holders of said rights. The annuity of each category is calculated as an amount that allows you to recover the principal and interest, which determine the cost of the debt. Average cost of debt The interest rates applicable to the collection rights to calculate the annual interest to be paid to the corresponding holders are calculated, for the 2005 Deficit, as the average of the prices of the EU-RIBOR at three months of the month of November immediately preceding the year in which it is to be applied and, for the Ex Ante Deficit, the same reference is used but increased Source: INF / DE / 006/21 of the CNMC. Agreement by which a report is issued on the current state of the debt of the electricity system. Energy Notebooks 79 Debt of the electricity sector and application of the system surplus. Current situation and future forecasts Figure 7. Interest rates applicable to the different categories of collection rights and weighted average cost of debt in the electricity sector Source: INF / DE / 006/21 of the CNMC. Agreement by which a report is issued on the current state of the debt of the electricity system. mentioned in a spread of 65 basis points. For its part, the interest rate used to calculate the interest on ac- placed in negative values since April 2015. estimated annuity for the year 2021 with The data available as of 12/31/2020 would be 2,464.5 million euros, 9.07% lower than in 2020. The 2013 deficit update is a type of For its part, the weighted average cost of 15-year fixed interest of 2.195%, while the interest rate accrued by the rights assigned to FADE is the internal rate the debt of the electricity sector in 2021, with the data available as of 12/31/2020, is 2,466% 3 The annuity corresponding to FADE is the largest. In 2019 and 2020, it has represented 76% of the total annuity paid to the holders of the rights of weighted average yield (IRR) of all outstanding issues of the Fund as of November 30 of the previous year plus a spread of 30 basis points 2 Cost of annuities Figure 8 shows the evolution of the payment. annuities of the debt collection rights of the electricity sector over time, and from 2021 onwards, forecasts. For its part, Figure 10 shows the Taking into account the above, as shown in Figure 7, FADE constitutes breakdown between principal and interest of the annuities associated with each of the collection rights. currently the highest cost debt, with an interest rate in 2021 that amounts to As can be seen in Figure 9, during 2020, the total amount in concept to 2,562%, while the 2005 Deficit to the annuity of the collection rights In the annuity corresponding to FADE is, to date, the debt with the lowest cost, as its interest rate is applicable from - 0.521% in 2021 due to the fact that the corresponding to the debt of the electricity sector amounted to 2,710.3 million euros, 0.51% higher than the annuity For the year 2021, 14.9% corresponds to the payment of interest, although the percentage has decreased between 2019 and 2020, and also The three-month EURIBOR rate has been total satisfied in 2019. For its part, the also between 2020 and 2021. The interest rate 2 The effective interest rate is modified throughout the year with FADE refinancing issues, which may increase or decrease the weighted average cost of the Fund. 3 The cost of debt has been calculated for the years 2021 and 2020 with the data available as of 12/31/2020 and 12/31/2019, respectively, and therefore, it does not take into account the effect of FADE refinancing issues. 80 Energy Notebooks Debt of the electricity sector and application of the system surplus. Current situation and future forecasts Figure 8. Evolution of the annual payments of the collection rights of the electricity sector, by category of collection right, from their origin to their complete satisfaction (thousands of euros). Until 2020 the data are real and, as of 2020, they are forecasts Source: INF / DE / 006/21 of the CNMC. Agreement by which a report is issued on the current state of the debt of the electricity system. Deficit 2005, which was negative for 2016 for the first time in the history of this Estimated for the year 2021 amount to 352.6 million euros, of which the Application of surpluses of the electrical system collection right, has been in negative values since then, while 87% (308.0 million euros) correspond to the interests associated with the annuity The income surpluses that have resulted from the closing settlements of the years 2014 to 2018, were deposited in a specific account opened by the CNMC, The interests associated with the Ex Ante Deficit represent 0.3% of the total annuity of 2021. On the other hand, the interests by FADE. The generalized fall in interest rates is expected to translate into the payment of of the 2013 Deficit represent 15.9% of the in accordance with the provisions of the total annuity in 2021. interest associated with the debt of the electricity sector in 2021 12.4% lower than in 2020 (402.6 million euros) and 21.1% lower than in 2019 (446.9 Fifth transitory provision of Order IET / 2735/2015, of December 17. Throughout those years, the accumulated surplus reached 1,687.5 million euros. In aggregate terms, interest represents 14.3% of the total debt annuity of the electricity sector in 2021. million euros), amounts that due to the effect of the adjustment in FADE's interests derived from the refinancing operations carried out in 2019 and Next, the evolution of the regulations associated with the application of the surplus is reviewed, as well as the effective amounts In absolute terms, as shown In Figure 11, the interest on the debt 2020, respectively. applied minds and their concepts. Energy Notebooks 81 Debt of the electricity sector and application of the system surplus. Current situation and future forecasts Figure 9. Total amounts of the annuities paid in 2019 and 2020, and estimated for 2021, by category of right of collection of the electricity sector debt and year-on-year variation percentages Note: The annuities corresponding to FADE include the adjustments in the interests derived from the amortizations and refinancing that have taken place throughout the years 2019 and 2020. For the Ex Ante Deficit, the annuity is considered in the terms established in article 10 point 2 chap. V of Order ITC / 694/2008. The annuity corresponding to the year 2021, for all the categories of collection rights except for the 2005 Deficit, corresponds to the estimate made with the data available as of 12/31/2020. For the 2005 Deficit, the amounts that have been paid in 2021 have been considered to fully pay the right of collection on February 10, 2021, which come from the 2020 specific destination quota. Source: INF / DE / 006/21 of the CNMC. Agreement by which a report is issued on the current state of the debt of the electricity system. Figure 10. Breakdown between principal and interest of the annuities corresponding to the years 2019, 2020 and 2021 of each of the categories of debt collection rights of the electricity sector (%) Note: The annuity corresponding to the year 2021 corresponds to the estimate made with the data available as of 12/31/2020. Source: INF / DE / 006/21 of the CNMC. Agreement by which a report is issued on the current state of the debt of the electricity system. 82 Energy Notebooks Debt of the electricity sector and application of the system surplus. Current situation and future forecasts Figure 11. Breakdown between principal and interest of the annuities corresponding to the years 2019, 2020 and 2021 of each of the categories of debt collection rights of the electricity sector (absolute values in millions of euros) Note: The annuity corresponding to the year 2021 corresponds to the estimate made with the data available as of 12/31/2020. The FADE annuity for 2019 and 2020 and, specifically, the amount of interest, incorporates the adjustments derived from refinancing operations. Source: INF / DE / 006/21 of the CNMC. Agreement by which a report is issued on the current state of the debt of the electricity system. Evolution of the regulations governing the use of surpluses in the system for 2017 and 2018, together with what was allocated in 2017, of 500 million On the other hand, Law 3/2017, of June 27, of General State Budgets for euros. 2017., establishes that surpluses may be used to pay compensation for litigation related to regulations of the electric sector. Law 24/2013, of December 26, on Electric sector, states in his article For its part, the first additional provision of Royal Decree-Law 15/2018, of 5 19 certain provisions on the trico, which must be paid from both the General State Budgets and the electricity system, provided that temporary mismatches between revenue and system costs. October of urgent measures for the energy transition and consumer protection , raise the range of this forecast is determined by ministerial order, Subsequently, article 8 of the Order and extends it to 2019. Specifically, prior agreement of the Delegate Commission of the ETU / 1282/2017, of December 22, by which the access tolls are established establishes that the surplus may be applied to cover temporary imbalances of Government for Economic Affairs. of electric power for 2018, establishes 2018 and 2019, corresponding to the Minister for Ecological Transition to determine the amounts, terms and terms of said application. Along the same lines, Law 6/2018, of July 3, on General State Budgets for the year 2018, enter a that may be included as payable income of the electricity system in 2017 and 2018 amounts from cation. Expressing himself later, in similar provision for the payment of litigation of the surplus account, to cover eventual imbalances between income and costs of said exercises. Setting, specifically, the limit of 200 million euros similar terms, article 7 of Order TEC / 1366/2018, of December 20, establishing the electricity access tolls for 2019. that must be carried out in 2018. Additionally, it establishes that, indefinitely, the surpluses of income from the electricity system may be allocated to Energy Notebooks 83 Debt of the electricity sector and application of the system surplus. Current situation and future forecasts the amortization of the system's debt, or alternatively, they may be integrated as accrued income in several years in the On the other hand, Order TEC / 1302/2018, of December 4, and Order TEC / 1314/2018, of December 7, establish the provisions Finally, Order TED / 952/2020, of October 5, by which the surplus of the electricity system is applied to cover the imbalances. electricity system, with effects equivalent to the amortization of the referred debt. necessary to implement a system temporary tenses and transit deviations of aid for investment in energy production facilities from renewable sources in non- peninsular territories and between income and costs for the years 2019 and 2020, enables the transfer of the amount necessary to achieve the balance On the other hand, it should be noted that both the Budget Law of 2017 such as that of determines the transfer of 60 million of income and costs for the financial years 2019 2018, they provide that they may be convened euros from the electricity surplus at and 2020, in accordance with the provisions of Royal Decree-Law 23/2020, of June 23. procedures for granting investment aid for electricity production facilities from budget of the Institute for the Diversification and Saving of Energy (IDAE) with effect of the year 2017, and another 60 million euros with effect of the year 2018. In application Therefore, 527.7 million have been applied renewable energy sources connected tions of euros from the surplus account to the electrical system, charged to the surplus. of the above, 120 million were transferred for fiscal year 2019 to end in euros from the surplus account to IDAE. Balance. Likewise, we proceeded to transfer from the specific account of the electricity surplus to the settlement account Finally, the third additional provision (“Destination of the surplus of the Electricity Sector For its part, Order TEC / 1303/2018, co") of Royal Decree-Law 23/2020, of 23 of November 27, determines the payment the amount of 506.2 million euros, June, approving measures on energy and other areas charged to the surplus of the efficiency supplement of the treatment plants to partially cover the imbalances in fiscal year 2020. for economic reactivation, "exceptionally, it establishes that the surplus of slurry. In application of this order, a total of 11.3 million euros was paid from the surplus account. The surplus applications mentioned are summarized in Figure 12. of income from the electricity system may be applied to cover temporary imbalances, on a preferential basis, and transitory deviations between income and costs for the 2019 and 2020 years ”. Figure 12. Breakdown of the different applications of the surplus made, which have represented a total of 1,683 million euros Application completed of the surpluses generated Various judicial pronouncements of the Contentious-Administrative Chamber of the Supreme Court forced the electricity system to return the amounts financed by companies or groups of companies as a social bond. For this reason, Order ETU / 1288/2017, of December 22, and Order ETU / 929/2017, of September 28, were published. In compliance with these orders, part of the surplus has been used to return the amounts financed by the companies as social bonds, as well as the corresponding interest, for the 2014 financial year (202 million euros) and for the 2015 and 2016 financial years (316 , 5 million euros). Source: CNMC 84 Energy Notebooks