et in natural gas, from 1 July 2009 will be entitled to the supply of last resort the consumers connected to pressures less than 4 bar, with annual consumption not exceeding 50,000 kWh/year.

Under Law 34/1998 of 7 October, Royal Decree 949/2001 of 3 August, regulating the access of third parties to gas installations and establishing an integrated economic system of the gas sector Article 25.1 states that the Minister, by order and after the Agreement of the Government Delegation for Economic Affairs, will dictate the necessary provisions for the establishment of the rates of sale of natural gas. This Article also provides that the specific values of the tariffs and prices or a system for determining and updating them shall be laid down in those orders.

In compliance with the above, the Minister of Industry Tourism and Commerce issued Order ITC/1660/2009, of 22 June, establishing the methodology for calculating the rate of last resort of natural gas (hereinafter referred to as " the The Order of Methodology). Article 10 of that order provides that the revisions of the tariff for the last resort of natural gas shall be carried out by means of a resolution of the General Directorate of Energy Policy and Mines. The fixed and variable terms of the tariffs shall be updated at the time when there is a change in the fixed and variable terms of the tolls and the system access charges or in the terms of merit in force. The variable term shall be updated on a quarterly basis, starting on 1 January, April, July and October of each year, provided that the cost of the raw material undergoes an upward or downward variation of more than 2%.

Likewise, Law 34/1998, of 7 October, of the Hydrocarbons Sector, provides for the transitional regime of gases manufactured in island territories, so that until the completion and implementation of the the supply of manufactured gases may be made by the distribution undertakings in order to supply natural gas. Order ITC/1660/2009, of 22 June, determines the rates applicable to the supply of gases manufactured in island territories until the arrival of natural gas, in accordance with the provisions of Article 25.1 of Royal Decree 949/2001, 3 of August. The single additional provision of that order provides that the tariffs to be applied by the companies distributing manufactured gases by channeling into island territories will be determined by the General Directorate of Energy Policy and Mines.

In its virtue, taking into account the tolls and charges in force, this Directorate General for Energy Policy and Mines has resolved the following:

First.

The non-tax rates of the last natural gas resource tariff that will be in effect from the zero hours of day 1 July 2017, will be as follows:

		Tarifa
	Fixed - (€/Client) /month	Variable - cent/kWh
TUR.1 Consumption less than or equal to 5,000 kWh/year	4.31	5,097607
TUR.2 Consumption greater than 5,000 kWh/year and less than or equal to 50,000 kWh/year	8.45	4,410207

Second.

Prices without taxes applicable to supplies of manufactured gas and/or air propaned in island territories, covered by the provisions of the transitional provisions of Law 34/1998, of 7 October, of the Sector of Hydrocarbons, in force from the zero hours of day 1 July 2017, shall be as follows:

		Tarifa
	Fixed - (€/Client) /month	Variable - cent/kWh
T. 1 Consumption less than or equal to 5,000 kWh/year	4.31	5,097607
T. 2 Consumption greater than 5,000 kWh/year and less than or equal to 50,000 kWh/year	8.45	4,410207
T. 3 Consumption greater than 50,000 kWh/year and less than or equal to 100,000 kWh/year	60.38	3.788829
T. 2 Upper consumption 100,000 kWh/year	181.72	3,478329

Third.

The cost of the raw material and the different elements that make it up are:

Cost Cost	Core Components - (cent/kWh)
	Reference
	Cn	RBn
1.978795	1,95529

	BR6n ($/Bbl)	Tn ($/ €)
51,8853	1.0985

Fourth.

For the calculation of the billing for the supply of natural gas per channel measured by counter, during the period including the date of entry into force of this Resolution, the total consumption of the invoiced period shall be divided on a proportional basis to the days