Clifford Chance
Spanish government "clarifies" that the temporary reduction of the remuneration paid to power producers excludes energy covered by certain PPAS
22 September 2021
On 20 September the Ministry replied to REE, clarifying the reduction of the remuneration passed by Royal Decree-Law 17/2021("RD-L 17/2021").
Aim of the clarification
To clarify that the reduction must apply "by an amount proportional to the increased income obtained by those plants due to the internalization of the cost of natural gas in the electricity pool price". For this reason, it is necessary to exclude from the reduction mechanism totally or partially the energy from plants that do not obtain that increased income, provided that they have a PPA in force by 15 September 2021 (unless it is an intragroup PPA) that has a price totally or partially fixed (in the sense of not being indexed to pool price).
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