Law 54/1997 of 27 November of the electricity sector established a general mechanism for the remuneration of electricity generation based on market prices and, in its sixth transitional provision, a supplementary and transition to competition (CTCs), with the aim of facilitating the transition from a planned regulatory environment to a competitive one in which the recovery of investments would depend only on the profitability of the " However, the CTCs ' mechanism has become inefficient, first of all, because they generate distortions in market prices by being integrated as determinants in the supply strategies; secondly, because they have become obsolete. assumptions on which the calculations of the CTCs were based on the enactment of the Act; finally, the available reports reveal a high degree of depreciation of the facilities concerned. In short, this is an unnecessary and distortive mechanism which requires urgent abolition, which is carried out by the repeal of the aforementioned transitional provision sixth. However, it is necessary to preserve the regimes contained in it as an incentive for the consumption of indigenous coal and support for the singular facilities that develop specific plans of special technological relevance. This need is reflected in the content of the art. 1 fifteen of the present Royal Decree-law. In addition, Law 54/1997 lays down the basis for the regulation concerning the special scheme and, in particular, lays down the need for electric self-consumption of plants using cogeneration; it is only the electricity surplus of the plants. installations of less than 10 MW, and establishes a pay band, between 80% and 90%, of the average rate for installations under the special scheme. The development of the policy for the promotion of energy efficiency, in line with the principles and criteria of Directive 2004 /8/EC, on the promotion of cogeneration on the basis of the useful heat demand in the internal market energy, and the full effectiveness of the actions in support of electricity generation with renewable energy sources make it necessary to give adequate compensation to all electricity co-generated regardless of the size of the plant and which is The Commission has been in the process of being a Member of the European Parliament. electrical energy of the special scheme. The urgent establishment of a clear and incentive legal regime in this area will support the necessary pending regulatory developments that will enable the ambitious objectives of the Government's environmental energy policy to be addressed. Moreover, the regulation in force since 2003 of the methodology for the approval or modification of the average or reference electricity tariff, sets an annual ceiling for the increase of that tariff and certain costs to be included in its calculation. The experience of its implementation, especially since 2005, when the Community regime for the trading of greenhouse gas emission rights is incorporated into the Spanish legal system, makes it necessary to enable the Government to modify the costs to be considered, as well as to relax the tariff variation limits and the different tariff groups. And this is with the urgency determined by the tariff review scheduled for 1 July 2006, as the deadline. The time-limit for the purchase of electricity by means of market mechanisms, in the terms laid down in the Additional Provision of Law 54/1997, cannot be fully developed by the existing restriction on the period of the life of the primary energy emissions. The impetus for the process of liberalisation of electricity supply for certain groups of consumers and the need to maintain competitive prices for electricity for companies carrying out their activities in competitive environments require action at the maximum speed, extending the term of primary energy emissions for periods longer than the calendar year. Inaction in this area will contribute to the maintenance of the negative effects of an oversupported electricity procurement system on the daily market. The current legal regime on gaseous hydrocarbons sets only the chronological criterion for allocating the capacity of natural gas underground storage. As a result of the new rules of technical management and the Spanish gas system presents an offer that exceeds the available capacity of the underground storage, the current allocation system has become inefficient and has the need for other allocation criteria to be established in order to optimise the management of available capacity and to ensure security of supply. In particular, and in relation to the natural gas injection and extraction programmes for the immediate months, it is urgent to establish a capacity-sharing system that takes into account the total sales quotas of the agents in the year. and the necessary reserve of capacity for the domestic-commercial market. In this way, the available capacity will be allocated in an orderly manner, the hoarding will be avoided and the supply will be ensured in the next winter period. The adoption of the set of measures described above, which require provisions with a range of law, bring together the characteristics of extraordinary and urgent need required by Article 86 of the Constitution. Extraordinary, because they affect the basic aspects of the regulation of a fundamental sector of our economy, as is the energy; and urgent, since the modification of the regulation must be effective immediately, since otherwise, it is To say, if it were to be done through the processing of a bill, a period of uncertainty would be generated for the necessary immediate decision-making by the agents of the sector. In its virtue, on the proposal of the Minister for Industry, Tourism and Trade and after deliberation by the Council of Ministers at its meeting on 23 June 2006.

D I S P O N G O:

Article 1. Amendments to Law 54/1997 of 27 November of the electricity sector.

Law 54/1997, of 27 November, of the Electrical Sector, is amended in the following terms: One. Paragraph 1 (a) of Article 9 (1) is amended as follows:

" (a) Electrical energy producers, who are those natural or legal persons who have the function of generating electrical energy, either for their own consumption or for third parties, as well as for the construction, operation and maintenance of electricity the production plants. "

Two. Article 9 (1) (b) shall be deleted.

Three. Article 10 (3) (c) is amended as follows:

"(c) Suppression or temporary modification of the rights which are laid down in Chapter II of Title IV for producers under special arrangements."

Four. The first subparagraph of Article 13 (2) and the first subparagraph of Article 13 (3) are amended as follows:

" 2. Energy acquisitions in other Community countries may be carried out by producers, external agents, distributors, traders and consumers, subject to the authorization of the Ministry of Industry, Tourism and Trade, which may only refuse it when equivalent subjects are not recognised in the country where the energy is acquired equivalent to the same procurement capacity. 3. Energy sales to other Community countries may be made by producers, external agents, distributors, marketers and national consumers, after communication to the system operator and authorization of the Ministry of Industry, Tourism and Trade, which may refuse it, exclusively, when it involves a certain risk to the national supply. "

Five. Article 16 (7) is amended and read as follows:

" 7. The remuneration for the production of energy-central bars of producers under special arrangements shall be that which corresponds to the production of electrical energy in accordance with paragraph 1 of this Article and, where appropriate, a premium which shall be determined by the Government, after consultation with the Autonomous Communities, in accordance with Article 30.4. "

Six. The last subparagraph of Article 20 (2) is amended as follows:

"The producers under special arrangements shall keep separate accounts of the electrical activities and those which are not such as separate accounts in their internal accounts."

Seven. Article 25 (2), which is worded as follows, is amended as follows:

" 2. In accordance with Chapter II of this Title, producers of electrical energy under special arrangements may incorporate into the system their production of energy in central bars without submitting to the system of tenders. "

Eight. Article 25 (3) shall be deleted.

Nine. Article 27 (1) (a) is amended as

:

"(a) Facilities using cogeneration or other forms of electricity production associated with non-electric activities provided that they are of high energy performance."

Ten. Article 29 is amended, which is worded as follows:

"The energy defined in Article 30.2.a) shall be subject to the principles of ordination of Title II and to those of Titles III and IV of this Law that apply to them."

Once. Article 30 (2) (a) is amended as

:

" a) Incorporate its production of energy in bars from central to the system, perceiving the remuneration to be determined in accordance with the provisions of this Law. For these purposes, the production of energy in central bars shall be considered to be the total production of electrical power of the plant, minus the consumption of the power generation plant. Where the conditions of electricity supply make it necessary, the Government, after reporting by the Autonomous Communities, may limit, for a given period, the amount of energy which may be incorporated into the system by the producers of the special arrangements. '

Twelve. Paragraphs (b), (c) and (d) of Article 30 (2) become paragraphs (c), (d) and (e), respectively, and a new subparagraph (b) is inserted in Article 30 (2) with the following wording:

"b) Priority in the access to the transport and distribution networks of the generated energy, respecting the maintenance of the reliability and safety of the networks."

Thirteen. Article 30 (4) (a), (b) and (c) are amended as follows:

" (a) The facilities referred to in point (a) of Article 27 (1) for a maximum period of 10 years from the start of the operation. (b) hydroelectric power plants of 10 MW or less, and the rest of the installations referred to in Article 27 (1) (b). For the purposes of this Law, no urban solid waste or hazardous waste shall be understood as biomass. (c) hydroelectric power plants between 10 and 50 MW, the facilities referred to in Article 27 (1) (c), and the facilities referred to in the second subparagraph of Article 27 (1). For the determination of the premiums, account shall be taken of the level of stress of the supply of the energy to the grid, the effective contribution to the improvement of the environment, the saving of primary energy and the energy efficiency, the production of heat economically justifiable and the investment costs incurred, to the effect of achieving reasonable rates of return with reference to the cost of money in the capital market. '

Fourteen. The first paragraph of the additional sixteenth provision is worded as follows:

" The government will be able to establish market mechanisms by regulatory means that encourage the delivery of electricity. Such mechanisms shall take the form of a primary emission of a certain amount of electrical energy, equivalent to a given power, under the conditions and during the period of time specified in the emission. '

Fifteen. The additional twenty-first and twenty-first provisions are added, with the following wording:

" Additional Disposition 20th. Feasibility plans and incentives for indigenous coal consumption.

1. The Government, after a report from the Commission Delegated for Economic Affairs, exceptionally, may approve extraordinary financing plans for those companies holding power production facilities which (a) to show special financial difficulties to the point of being able to jeopardise the normal development of the company's activities. Those plans shall be included in the production costs for the calculation of the average electricity tariff. 2. The Government shall also, in accordance with Articles 3 and 11 of Directive 2003 /54/EC of the European Parliament and of the Council on common rules for the internal market in electricity, for reasons of security of supply, may approve a premium system up to a maximum limit of EUR 10 per MWh produced, allowing for the preferential entry into operation of generating facilities using indigenous primary energy sources. These premiums shall be considered as permanent operating costs of the system for the purposes of Article 16 (5) of Law 54/1997 of 27 November of the Electrical Sector and shall be included as such for the calculation of the electricity tariff. average.

Additional twenty first disposition. Methodology for the approval or modification of the average electricity tariff from 1 July 2006.

1. The government, for the calculation of the average tariff to be approved, may set the annual ceilings for the increase of the said tariff as well as the costs to be considered. 2. The Minister of Industry, Tourism and Trade is enabled to establish the subjects to be financed and the corresponding amounts in those liquidation periods in which there is a deficit to give back the regulated activities. In those periods of liquidation in which a surplus is produced, it may be applied to reduce the deficit from previous periods or it shall be considered a liquidable income applicable to the remuneration of regulated activities in tariff periods. "

Sixteen. The sixth transitional provision is deleted.

seventeen. The eighth transitional arrangement is deleted.

Article 2. Amendment of Law 34/1998 of 7 October of Hydrocarbons.

One. A new additional provision is introduced with the following wording:

" Additional twenty-fifth disposition. Operational storage included in the regasification and transport and distribution tolls.

1. The charges for regasification and transport and distribution shall include the right to the use of the facilities necessary to transport the gas from the point of entry in the transport network to the point of supply to the consumer and the right to a minimum operational storage required to be able to operate on the system. This minimum storage is fixed at ½ day of the contracted transport and distribution capacity, for the network of transport pipelines, and in five days of liquefied natural gas of the contracted capacity daily for the tanks of the plants of regasification in general, except for the case of users of the facilities with a contracted transport and distribution capacity of less than 0,5% of the total contracted capacity, for which the right to use storage Operating in the pipeline network will correspond to one day of the capacity of transport and distribution contracted. 2. The Minister of Industry, Tourism and Trade may modify the number of operational storage days included in the regasification toll and the toll of transport and distribution. "

Two. A new additional provision is introduced, with the following wording:

" Additional twenty-sixth disposition. Allocation of the capacity of the underground storage.

1. For the allocation of the capacity of the underground storage facilities, a percentage of the capacity of the underground storage facilities may be reserved for distribution, on an annual basis, between the subjects of the gas system. In the event of any remaining underground storage capacity resulting from the annual allocation, requests for access to underground storage shall be resolved on the basis of the chronological order of receipt of the formal request, without no marketer can reserve more than 25% of this remaining capacity. If, after this allocation, the remaining storage capacity is retained for the annual period in question, pending applications and new applications shall be taken in chronological order without regard to the 25% limit per year. marketer. 2. Access contracts signed as a result of the allocation associated with this reserve shall last for an annual period, from April one year to March of the following year, without the right to be extended. 3. Capacity reserve applications shall be submitted by the subjects concerned during the months of December and January. The Technical Manager of the System shall perform the capacity allocation in accordance with the procedure described above before the 28th of February of each year. 3. The Minister of Industry, Tourism and Trade may modify the criteria for the allocation of the capacity of the underground storage. "

Three. A new transitional provision is introduced with the following wording:

" Transient disposition eighteenth. Distribution of the capacity of the underground storage.

The percentage of the useful capacity reserved for the distribution between the subjects of the gas system is fixed for 2006 at 100% and will be performed under the following criteria: 83% of the usable gas storage capacity of the underground storage shall be allocated among the users who request it in proportion to their total sales or consumption on the market during the calendar year preceding each distribution. Traders whose market shares in total natural gas sales in the preceding calendar year are less than 0,5 per 100 may request that their share of total sales to the natural gas be considered up to a maximum of that percentage. computation effects for the distribution described in the preceding paragraph. 17% of the usable gas storage capacity will be allocated among users in proportion to the sales to consumers connected to pressure pipelines of less than or equal to 4 bars. For the period 2006-2007, the duration of contracts to be signed as a result of the allocation associated with this reserve shall end in March 2007, irrespective of the date of its signature. The Secretary-General for Energy of the Ministry of Industry, Tourism and Trade may amend the percentages referred to in this provision and the allocation procedure. The Technical Manager of the System shall make the allocation of capacities for the period 2006-2007 within 15 days of the entry into force of this provision. Existing gas underground storage contracts shall comply with the time limits and quantities allocated in the allocation. '

First transient disposition. Extraordinary financing plans and incentives for the consumption of approved indigenous coal.

Extraordinary financing plans approved for companies holding power production facilities prior to the date of entry into force of this Royal Decree-law will continue to apply until their date. extinction or modification as provided for in the additional 20th of Law 54/1997 of 27 November.

Likewise, existing indigenous coal consumption incentive systems will be applied prior to the entry into force of this Royal Decree-Law until the system of premiums referred to in the provision is developed. Additional twentieth of Law 54/1997 of 27 November.

Second transient disposition. Application of previous provisions and revision of the average tariff.

Until the provisions of paragraphs 1 to 12 of Article 1 are developed in accordance with the provisions of this Royal Decree-Law's second final provision: 1. Those installations for the production of electrical energy, with an installed power equal to or less than 50 MW, which, at the entry into force of Law 54/1997, of 27 November, were covered by the scheme provided for in Royal Decree 2366/1994 of 9 December, on the production of electrical energy by hydraulic, cogeneration and other installations supplied by renewable resources or sources of energy, as well as those referred to in the second provision of the said Royal Decree, they shall maintain such a regime.

2. The revision of the average tariff to be carried out by the Government shall not apply to the prices, premiums, incentives and tariffs which form part of the remuneration for the production of electricity in special arrangements.

Single repeal provision. Regulatory repeal.

How many provisions of equal or lower rank will be opposed to the provisions of this Royal Decree-Law.

Final disposition first. Competitive titles.

This Royal Decree-law is dictated by the provisions of Article 149.1.13. and the 25th of the Constitution, which attributes to the State exclusive competence on the basis and coordination of the general planning of the activity. economic and energy-based bases.

Final disposition second. Faculty of development.

The Government is enabled to develop the provisions of the present Royal Decree-Law. In any event, the remuneration scheme for special arrangements for the application of the provisions of Article 1 (1) shall be developed within six months of the publication of this Royal Decree-Law.

Final disposition third. Entry into force.

This Royal Decree-law shall enter into force on the day following that of its publication in the "Official Gazette of the State", with the exception of paragraphs 1 to 12 and 17 of Article 1, which shall enter into force when produce the review of the remuneration scheme for special scheme facilities in accordance with the provisions of the second Royal Decree-Law's second provision.

Given in Madrid, on June 23, 2006.

JOHN CARLOS R.

The President of the Government, JOSÉ LUIS RODRÍGUEZ ZAPATERO