Gas industry in Spain calls for better remuneration proposals

Sedigas, the Spanish gas industry's body, called on Monday for "significant" alterations to proposed remuneration regulations for gas-related businesses through 2032. They emphasized the need to ensure "a reasonable and sufficient remuneration structure". The energy and competition watchdog CNMC in the country released two sets of proposals late Thursday: one for remuneration rules of gas-related businesses through 2032, and another?for distribution operations.

The first affects primarily grid operator Enagas which manages the country’s trunk gas network. The second is for companies that operate local distribution 'grids' such as Naturgy.

Sedigas - which represents many companies in the gas industry - has called for an examination of provisions relating to the impact of inflation on costs, as well as those pertaining to certain incentives.

Analysts describe the proposals as?better than expected for companies.

J.P. Morgan said in a note last week that the draft regulation was "surprisingly?positive." Morgan stated in a recent note.

It said: "Our very early assessment suggests that the proposed regulation is a small surprise for Naturgy, and a big surprise for Enagas," estimating an impact on revenue much greater than J.P. Morgan estimated. Reporting by Pietro Lombardi

(source: Reuters)