Transfer of rights regarding the tariff deficit of the electrical system of 2013 and subsequent negative time gaps

Royal Decree 1054/2014 regulates the procedure for the transfer of the collection rights regarding the tariff deficit of the electrical system of 2013 and developing the calculation methodology of the interest rate which accrues collection rights of that deficit and, when applicable, of the subsequent temporary negative misadjustments. Furthermore this Royal Decree partially amends the Royal Decree 413/2014 and other regulation on the electricity sector. Royal Decree 1054/2014, of December 12, was published in BOE on 13 December, 2014.

The major objectives of Royal Decree 1054/2014 consists of:

• Regulating the procedure for granting Iberdrola, S.A.; Hidroeléctrica del Cantábrico, S.A.; Endesa, S.A.; EON España, S.L. y GAS Natural, S.D.G., S.A, the transfer of 2013 tariff deficit collection rights to a third party and to ensure that the successive holders can exercise legal rights over those deficit collection rights.
• Establishing the methodology in order to determine the interest rate in equivalent market conditions to the holders of 2013 tariff deficit collection rights; and for those that starting year 2014 had been paid the mismatch of the liquidation of the closing year, in accordance with Law 24/2013, of 26 December, of the Electricity Sector (LES).

It should be recalled that in accordance with article 19 of LES, every eventual income misadjustments starting 2014 will be financed by all participants proportionally to their remuneration. These misadjustments will be recovered within five years applying the interest rate as complying with legal specifications.

In addition to that, this law partially amends the Royal Decree 413/2014, of 6 June, regulating the electricity production activity using renewable energies, cogeneration and waste. In particular it establishes major simplifications in the procedure of temporary renounce of the compensation scheme; there are new operational improvements to ease the processes of the entity in charge of the settlement system; the article which requires that the representation modality must be the same for the purposes of the settlement of the market operator and of the specific compensation scheme is suppressed.

The first transitory disposition imposes the obligation to communicate before 14 January 2015 which group the facilities belong (article 14 of Royal Decree 413/2014).

Furthermore, Royal Decree 1110/2007, of 24 August, on the approval of the Regulations on Measurement Points of the Electricity System is modified in order to specify the key concepts to ensure the proper compliance with the electricity standards.

Finally, the Royal Decree implements other standards modifications (Royal Decree 1047/2013, of December 27, establishing the methodology for calculating the remuneration of electricity transmission activities; Royal Decree 1048/2013, of December 27, establishing the methodology for calculating the remuneration of electricity distribution activities; Royal Decree 1164/2001, of 26 October, which fixes the tariff rules for access to the networks of transmission and distribution of electricity).