The amount and financing of the system operator’s compensation is subject to public consultation.

This is the first time that the methodology of the Circular is applied to provide the remuneration of the system operator

The motion for a resolution establishing the amount of compensation of the system operator for 2020, as well as the prices that will influence the agents for its financing, has been submitted to public consultation by the CNMC. With this, it is the first time that an application resolution of the new circulars is submitted to a public hearing.

The proposal submitted for consultation corresponds to Circular 4/2019 that was approved on November 27 and determines the remuneration methodology of the electric system operator. This is the first time that the methodology of the Circular is applied to provide the remuneration of the system operator in 2020, as well as the prices to be passed on to the agents for its financing. As of today, the allegations may be presented within 10 business days.

The system operator is a specific organic unit within Red Eléctrica de España that is responsible for guaranteeing the continuity and security of the electricity supply and the correct coordination of the production and transport system.

What do you consider the motion for a resolution?

The motion for a resolution contemplates a remuneration for the system operator of 74.69 million euros in 2020. If we disaggregate the amount, 71.59 million will be in the form of a remuneration base, while an incentive compensation term is also contemplated. which, at most, can scale up to 1.43 million. Finally, the annual amount accrued from the regulatory account for new obligations will be 1.66 million euros.

The system operator is a specific organic unit within Red Eléctrica de España that is responsible for guaranteeing the continuity and security of the electricity supply and the correct coordination of the production and transport system.

Financing of system operator compensation

In terms of financing, as established in Circular 4/2019, the remuneration of the system operator in 2020 will be sustained by a fixed fee and a variable fee.

Finally, according to the motion for a resolution, the price from which the variable quota is determined will be 0.13741 million / MWh in 2020.