Annual Report 2010 - Enel.com

Developments in prices in the main markets
€c/kWh
End-user market
(residential): (1)
2010 2009 2010-2009
France 9.2 9.2 -
Portugal 10.9 13.2 -17.4%
Romania 8.6 8.2 4.9%
Spain 14.2 13.4 6.0%
Slovakia 12.8 13.0 -1.5%
End-user market
(industrial): (2)
France 6.9 6.3 9.5%
Portugal 9.0 9.3 -3.2%
Romania 8.5 8.2 3.7%
Spain 11.1 10.8 2.8%
Slovakia 11.6 14.1 -17.7%
(1) Half-yearly price before tax – annual consumption of between 2,500 and
5,000 kWh.
(2) Half-yearly price before tax – annual consumption of between 500 and 2,000
MWh.
Source: Eurostat.
Regulatory and rate issues
Iberia and Latin America
Spain
Rate updates
On December 31, 2009, the government published Ministerial
Order 3519/09, which set the electricity rates starting
from January 2010.
Access rates were raised by an average of 14.5%. Specifically,
customers qualifying for the TUR (Tarifa de Ultimo
Recurso) without regard to time band will see an average
9% increase in their access rates.
The Ministerial Order also calls for, among other things:
> a significant increase in the remuneration for reactive
power, which could increase the regulated revenues for
the system by up to 3%;
> modification of the formula for calculating the electricity
component of the TUR without regard to time band,
which could lead to an increase of up to 2% in the cost
of electricity payable to the CURs (Comercializadores de
Ultimo Recurso);
> revision of the remuneration for continuity service
in 2010: €450 million (compared with €750 million
attributed to system costs for 2009);
> the extension of the right of non-TUR customers who
are not party to a free-market contract to be supplied
by the CURs until December 2010.
With its Resolution of December 29, 2009, the Ministry for
Industry updated the TUR for the 1st Half of 2010, increasing
the rate without regard to time band by 2.64% over
the same rate applicable during the 2nd Half of 2009.
On June 30, 2010, Ministerial Order 1732/2010 was published,
setting access rates for the 2nd Half of 2010. All
rates were kept at the same level as for the 1st Half of the
year, except for the variable component of the access rate,
which corresponds to the TUR without regard to time
band and was cut by 4.3% to offset the rise in the cost of
electricity resulting from the most recent CESUR auction.
On the same date, the Ministerial Resolution of June 28,
2010, setting the cost of electricity for the TUR for the
3rd Quarter of 2010, was also published. Overall, the TUR
without regard to time band was kept at the same level as
for the previous period.
Royal Decree 1202/2010, published on September 25,
2010, set the access rate revision schedule. Access rates
will be updated annually, unless the following extraordinary
events (that could require the rates to be revised
more frequently, though no more often than quarterly)
occur:
> the existence of a rate deficit;
> regulatory changes that affect the regulated costs used
in calculating access rates;
> on an exceptional basis, when special circumstances
occur that affect regulated costs or the parameters
used in calculating them.
The Ministerial Resolution of September 29, 2010 (published
on September 30) set the parameters used in calculating
the TUR for the 4th Quarter of 2010. There was
a 5% increase overall in the TUR without regard to time
band due entirely to the rise in the cost of electricity resulting
from the twelfth CESUR auction. The access rates were
left unchanged.
On December 29, 2010, Ministerial Order 3353/10 was
published, setting electricity rates applicable as from January
2011.
The access rates were left unchanged.
Among other provisions, the Ministerial Order also provided
for:
> a revision of unit prices paid by consumers to finance
capacity payments, which increased available funds by
about 71%;
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