Royal Decree 949/2001, of 3 August, which regulates the access of third parties to gas installations and establishes an integrated economic system of the natural gas sector, in its article 15 establishes that the activities of For the supply of natural gas they shall be paid economically in the form set out in the said Royal Decree with charge of the fees, tolls and charges. Articles 16.6, 19.2, 20.5, 22.3 and 23 of the aforementioned Royal Decree 949/2001, as amended by Royal Decree 942/2005 of 29 July 2005, refer to the fact that the Minister for Economic Affairs, after reporting by the National Energy Commission, will establish before the 1 January of each year, the respective remuneration of: the fixed costs of the regasification, storage and transport activity for each undertaking or group of undertakings for that year, as well as the specific values of the parameters for the calculation of the the variable part that corresponds to them; the costs of the sales management activity by the carriers; the costs of the distribution activity corresponding to each company or group of companies; the activity of gas supply at the rate to the distribution companies, and the activity of the Technical Manager of the System. In addition, Articles 16 and 20 provide that the Minister for Economic Affairs, following a report from the National Energy Commission, may lay down formulas for the annual update of the remuneration to the distribution companies, on the basis of the variation of the The main economic measures, a fair distribution between users and distributors of variations in the productivity of the activity, the investment effort of the company, the coefficient of expansion of the network, the variation of the demand, the efficiency and improvement of the quality of service. In addition, it may lay down specific remuneration, limited in time, for installations which allow access to new population centres in such a way as to make it possible to supply the areas with gasification. Order ECO/30 1/2002, of 15 February, in the development of Royal Decree 949/2001 of 3 August, established the remuneration of regulated activities of the gas sector for the year 2002 and a system for the calculation and updating thereof. Subsequently, the order ECO/30 /2003, dated 16 January, updated the remuneration for the year 2003 in accordance with the principles set by Royal Decree 949/2001 and the order ECO/30 1/2002. On 31 December 2002, Royal Decree 1434/2002 of 27 December 2002 regulating the activities of transport, distribution, marketing, supply and authorisation procedures for natural gas installations was published. establishing the rights to be affected. The Royal Decree 1554/2004 of 25 June 2004, for which the basic organic structure of the Ministry of Industry, Tourism and Trade is developed, in Article 1, assigns to this ministerial department the elaboration and implementation of the policy Government energy. For its part, Article 4 of Law 50/1997 of 27 November of the Government attributes to the Ministers the exercise of the regulatory authority in the matters of its Department. In accordance with the above and in the form laid down in Article 25 of Royal Decree 949/2001, it is for the Minister for Industry, Tourism and Trade to lay down the provisions necessary for the establishment of the rates of sale of natural gas, prices for the sale of natural gas for distribution companies, and the tolls and charges for basic access services by third parties. The draft of this order has been the subject of the mandatory report of the National Energy Commission. Likewise, according to the provisions of Royal Decree 1552/2004 of 25 June, for which the basic organic structure of the Ministry of Economy and Finance is developed, it has been informed by the Directorate General of Economic Policy. Finally, the content of the project has been approved by the Government's Delegate Committee for Economic Affairs at its meeting on 23 December 2005. In its virtue, prior to the Agreement of the Government of the Government for Economic Affairs, I have:

Article 1. Object.

The purpose of this order is the establishment and updating of the remuneration regime applicable to the activities of regasification, storage, transportation, management of the sale of gas destined for the market at tariffs, distribution, supply at rates of natural gas and remuneration to the Technical Manager of the System and define the elements that make up the same, establishing the necessary measures to ensure the proper delivery of the service.

Article 2. Regasification, storage, and transportation activities.

1. For the purposes of applying the remuneration scheme set out in this order, the costs incurred in carrying out the development shall be included in the activities of regasification, storage and transport of natural gas. operation and maintenance of the facilities included in Article 16 (1) of Royal Decree 949/2001 of 3 August, detailed in the following paragraphs. 1.1. The regasification facilities include: (a) the port and land civil work.

b) LNG storage tanks, including discharge and connection facilities with vaporizers. c) The vaporization facilities, along with the pipelines connecting to the transport network. (d) Tanks of tanks, if they exist.

1.2 Storage facilities include:

a) The injection facilities.

b) The underground storage infrastructure. (c) the extraction facilities. (d) where applicable, gas treatment facilities.

1.3 The transport network comprises:

(a) Natural gas primary transport pipelines whose maximum design pressure included in the installation authorisation is equal to or greater than 60 bar.

(b) Secondary transport pipelines whose maximum design pressure included in the installation authorisation is less than 60 bar and greater than 16 bar. (c) International connection pipelines, understanding as such those in the national territory that connect the national network with the gas pipeline networks of other countries or with existing deposits or storage in the exterior, with independence of the design pressure. (d) the pipelines for connection of the strategic and operational fields and storage with the gas system, regardless of the design pressure. e) Compression stations connected to the transport pipelines. (f) Regulatory and measurement stations connected to pipelines with input at pressure of more than 16 bar. (g) Where appropriate, the odorization facilities. (h) Other facilities necessary for the operation of the above facilities.

1.4 Furthermore, all the assets of communications, protection, control, ancillary services, land, buildings and other ancillary elements are considered to constitute elements of the transport network. necessary for the proper functioning of the specific regasification, storage and transport network facilities defined above.

1.5 For the purposes of the remuneration scheme they shall not be part of the specific facilities for regasification, storage and transport of consumer facilities for their exclusive use. 1.6 In the case of directly authorized installations, the Directorate General for Energy Policy and Mines, after a report by the Technical Manager of the Gas System and the National Energy Commission, will expressly resolve the inclusion of a installation of regasification, storage or transport of gas in the remuneration scheme provided for in this order, without prejudice to the other necessary administrative authorisations referred to in Article 55 of the Law 34/1998 of 7 October of the hydrocarbon sector.

Article 3. Remuneration for the activities of regasification, storage and transport.

1. By order of the Ministry of Industry, Tourism and Trade, which shall be published before 1 January of each year, the remuneration recognised for the regasification, storage and transport activities of each undertaking or group of undertakings shall be determined. "i" for the year "n" in accordance with the provisions of this order. The remuneration for each undertaking or group of undertakings 'i' shall be constituted by a fixed term, function of the cost credited to the premises in accordance with the provisions laid down in this order and, where appropriate, by a variable term, The function of the kWh regasified in the year 'n', the kWh of LNG intended for transfer, loading or cooling of ships in the year 'n' and the kWh injected and/or extracted in underground storage in the year 'n'.

2. The annual remuneration for the regasification, storage and transport activities recognised to the undertaking or group of undertakings 'i' in the year 'n' shall be calculated by the Ministry of Industry, Tourism and Trade in accordance with the following formula:

Rhine = RF2002in + RINFin + RVin + RVTin

Being:

Rhine: the cost of regasification, storage and transport recognized to the company or group of companies "i" in the year "n".

RF2002in: Fixed cost credited to regasification, storage and transport activities with service entry prior to December 31, 2001 updated to year "n" according to the following formula:

An image appears in the original. See the PDF document for this disposition.

Where: RF2002i: Corresponds to the fixed cost recognized to the company or group of companies "i" in the year 2002 for the facilities of regasification, storage and transport with entry in service before December 31, 2001.

fj = Efficiency index for year "j". IPHj: forecast of index variation for year "j", calculated according to the following formula:

IPHj = (IPCj + IPRIj) /2

Where:

IPCj = forecast of consumption price index variation for year "j"

IPRIj = forecast of the change in the industrial price index for the year "j" RINFin: fixed cost credited for the year "n" for all new investments, with entry into operation between 1 January 2002 and the 31 December of year "n-1", made by the "i" company or group of companies, shall be calculated as:

An image appears in the original. See the PDF document for this disposition.

Being:

RINFCin: established fixed cost for the year "n" to all new investments authorized by concurrency procedure, with entry into operation between 1 January 2002 and 31 December of the year "n-1", made by the "i" company or group of companies.

RINFDn-1: established fixed cost for the year "n" of new investments directly authorised by the company or group of "i" companies that have become operational in the year "n-1". RINFDj: fixed cost credited of the investments authorized directly and put into service in the year "j", between the years 2002 and "n-2", both inclusive, by the company or group of companies "i". The other terms have the meaning detailed above.

RVin: variable cost credited to the updated regasification activity per year "n" according to the following formula:

An image appears in the original. See the PDF document for this disposition.

Being:

RV2002: variable cost credited to regasification activities for the year 2002.

kWhrin: kWh regasified by the company or group of companies "i" in the year "n". The other terms have the meaning detailed above.

RVTin: variable cost credited to the LNG-to-ship transfer services updated per year "n" according to the following formula:

An image appears in the original. See the PDF document for this disposition.

Being:

RVT2006: variable cost credited to LNG transfer services to ship for the year 2006.

kWhTPBin: kWh of LNG transferred from plant to ship or used in cold sets of ships by the undertaking or group of undertakings "i" in the year "n". kWhTBBin: kWh of LNG transferred from ship to ship by the undertaking or group of vessels "i" companies in the year "n".

3. The value of the efficiency index, fj, shall be fixed annually when the annual review of gas tariffs is carried out, without experiencing subsequent revisions, and shall not in any case exceed 0,85. For the year 2006 it is fixed at 0.85.

4. For the determination of the cost of regasification, storage and transport recognised to the company or group of companies "i" in the year "n", Rhine, the definitive values of official indices of consumer prices, CPI, and indices shall be used. industrial price officers, IPRI, from previous years, which are available at the time of calculation. For years "n-1" and "n", the values of which are not known at the time when the cost of regasification, storage and transport of the year "n" is determined, the estimate of the CPI has been established by the government in its proposal of General Budget of the State of the Year "n" and the IPRI estimate.

Article 4. Total accredited cost associated with the new regasification, storage and transport investments authorized by the concurrency procedure.

1. The cost credited for the year "n" of a regasification, storage or transport facility authorized by the concurrency procedure shall be calculated in accordance with the conditions for the award of the competition.

2. The total cost credited by an 'i' company in one year for the whole of its facilities awarded by the competition procedure (RINCin) will be calculated as an aggregation of the costs of the above updated facilities according to the conditions of resolution of the concurrency procedure.

Article 5. Total accredited cost associated with the new direct authorized regasification, storage and transport investments.

1. In general, the remuneration for each of the regasification and transport facilities authorised directly shall be fixed in accordance with the unit values of the investment, unit values and parameters fixed by the Ministry of Industry, Tourism and Trade, prior to the report of the National Energy Commission with transparent, objective and non-discriminatory criteria. 2. The remuneration for each regasification or direct authorized transport facility (RINDn) shall be calculated as follows:

RINDn = CIT (n) + CET (n)

Being:

CIT (n): annual investment costs.

CET (n): annual operating costs.

3. In order to determine the value of the investment of the gas regasification or transport facilities, the reference unit values and their corresponding updates shall be used in accordance with Annex II to this Regulation. order.

The annual investment cost [CIT (n)] of a direct authorised regasification or transport facility shall be calculated as the sum of the amortisation and the remuneration of the value of the investment as laid down in the Annex III to this order. 4. The annual operating cost of a direct authorised regasification or transport facility [CET (n)] shall include the costs of operation and maintenance of the facilities, the cost of the structure and any other costs necessary for the operation of the facility. to develop regasification or transport activities. 5. For those installations authorized directly with unique technical characteristics, the Ministry of Industry, Tourism and Trade, after the National Energy Commission, shall determine the specific remuneration in accordance with the principles set out above. The same consideration shall be given to investments involving modifications of existing installations, provided that this leads to an increase in the capacity for regasification, storage and transport of this facility and the port civil work. land of the regasification plants. The annual operating cost associated with the regasification and transport activities shall be calculated in accordance with the provisions and unit values set out in Annex IV to this order. 6. In the case of regasification facilities, the initial fixed annual cost, [RINDn] shall be the result of discounting the total cost [RIDn] of the result of multiplying the unit variable cost credited to the updated regasification activity to the year "n" (RV2002n) by the annual regasification design capacity of the affected installation of a coefficient of 0.75. In subsequent years this remuneration shall be updated as determined in Article 3. 7. In the case of installations with a special technical nature or modification of the existing ones, the value of the investment and the operating costs shall be calculated in accordance with Articles 12, 13 and 16.

Article 6. Accredited costs of regasification, storage and transport facilities that have ended their life or are subject to closure.

1. The accredited costs of the facilities which have been subject to closure shall be deducted from the remuneration, calculating the costs relating to those facilities by the procedure used to determine their initial remuneration.

In the case of installations granted by means of a concurrency procedure, the cost of such facilities, when they have ended their useful life or are subject to closure, will be deducted from the remuneration, calculating the costs corresponding to the such installations in accordance with the award bases of the competition. 2. For installations which have completed their useful life but remain operational, for the purpose of their remuneration, they shall be considered exclusively as accredited costs of the installation, the operating cost plus 50% of the costs of remuneration of R (n) investment calculated by the procedure used to determine such costs for new investments granted by direct authorisation in accordance with the procedure laid down in Annexes III and IV to this order. 3. In both cases, the amounts to be rebrought shall take into account the annual updates which have been made since the date of calculation of the remuneration.

Article 7. Inclusion of new transport, storage and regasification facilities under the remuneration scheme.

The holder of a regasification, storage or transport facility may request the Directorate-General for Energy Policy and Mines to include in the remuneration scheme of a new installation or extension of a existing, accompanying the application the documentation that in each case is determined in the present order.

The General Directorate of Energy Policy and Mines will request a report once the documentation has been received from the Technical Manager of the System and the National Energy Commission, in accordance with Article 2 of this order. Once these reports have been received, the Directorate-General for Energy Policy and Mines will dictate the appropriate Resolution of inclusion in the Economic Regime indicating the recognized costs and the date of inclusion.

Article 8. Documentation to be included in applications for the inclusion of regasification plants.

Accompanying the application for inclusion in the remuneration scheme the following documentation must be sent: Technical characteristics of the installation.

Investment made, duly audited, broken down by cost concepts, in each of the following items:

Each of the storage tanks, which will include the civil work and facilities required for the discharge and conduction of liquefied natural gas (LNG) to the tanks and from these to the vaporizers, including security installations related to the torch.

Regasification facilities, which will include the vaporizers and all necessary facilities between the vaporizer entrance and the valve/s connection with the transport network. Port and land civil works, which will comprise all the necessary investments for the conditioning of the land, the docks, the port, the emission and the collection of water, etc. with the exception of the necessary civil work of the installations of regasification and storage tanks. Loading of LNG tankers.

Final Act of entry into service issued by the competent authority.

Commercial exploitation certificate, which will collect the emission capacity and the useful capacity of the LNG tanks, issued by the competent administration. Express declaration of aid and contributions from public funds or measures having equivalent effect.

Article 9. Method of calculation of recognised costs in regasification plants.

Regardless of the investments made, the recognised costs shall be calculated in accordance with the unit value tables included in this order with the following points: it shall be recognised as the value of the Tank inversion the result of multiplying the unit value recognized by the useful capacity of the tank, understanding as such the maximum volume of LNG that can be extracted and injected into the tank in a normal process of operation, in no case This figure may be higher than that fixed in the approval of the installation. This useful capacity must be specified in the commercial exploitation certificate.

The value of the investment in regasification, the result of multiplying the recognized unit value, by the emission capacity of the plant without including reserve vaporizers, will be recognized. The emission capacity shall be collected on the commercial operating certificate and shall be the average emission over a continuous period of 100 hours of operation and, in no case, shall be higher than that fixed in the authorisation of the installation. The port and land civil work shall be assessed in accordance with the results of the audit up to the maximum set out in Annex II to this order. In the case of the existence of regulatory stations in the regasification plant enclosure, these shall be included as transport facilities, being assessed in accordance with the provisions of Article 5.

Article 10. Documentation to include in requests for inclusion of transport facilities.

Accompanying the application for inclusion in the remuneration scheme the following documentation must be sent: Technical characteristics of the installation.

A properly audited investment, broken down by cost concepts, for each pipeline, compression station and regulation and measurement station. Minutes of final entry into service. Express declaration of aid or contributions from public funds granted or measures having equivalent effect.

Article 11. Method of calculation of recognised costs in transport facilities.

The following shall be included in the remuneration scheme as transport facilities: pipelines.

Compression stations. Regulation and Measure stations. (ERM)

Not to be included in the remuneration scheme:

The pipelines for delivery to a single consumer, including in this case the associated regulatory and related measurement stations.

Amendments or variants at the request of individuals or administrations (roads, railways, telephony, power lines, etc.). Any other investment that does not result in increased transport capacity.

Are considered to be included in unit costs:

The pipeline bypass positions.

Investments in complementary facilities (installation of teletransmission and control, electrical installations, water, maintenance centres, measuring equipment, protection, odorization, etc.). The measurement facilities in the stations of regulation and measurement.

Regardless of the investments made, the recognised costs shall be calculated in accordance with the unit values listed in Annex II to this order, with the following points:

The value of the investment in pipelines shall be recognised by all concepts as the result of multiplying the length of the tube, which shall be reflected in the entry into service, by the recognised unit values.

In the case of ERM the unit values include the telematic equipment capable of determining both the quality of the gas and all the parameters necessary for the calculation in energy units (kWh) of the gas transported, and heating system when necessary. The date of inclusion in the remuneration scheme shall be that of the final entry into service.

Article 12. Installations with special technical characteristics.

Under this heading, only those corresponding to the natural gas underground storage and those of regasification and/or transport shall be considered for their technical characteristics, and not for economic reasons, require specific treatment.

In any case, the rating as an installation with special technical characteristics, except in the case of underground storage, must be requested together with the prior administrative authorisation. Such authorisation shall include the criteria for its assessment. The value of the investment for the calculation of the credited cost shall be that which corresponds to the actual investment to be credited with the relevant audit. Operating costs should also be justified on the basis of criteria and parameters commonly applied in facilities with similar characteristics.

Article 13. Modification of existing installations.

Changes in existing facilities will only be included in the remuneration scheme where they entail an increase in the capacity of transport, regasification or storage.

In the case of modifications involving an increase in capacity, in future extensions, the value of the investment for the calculation of the credited cost shall be that corresponding to the investment actually made, which shall be justified. with the corresponding audit. In no case shall that value be higher than the value of the unit values laid down in Annex II. The annual operating costs of the enlargements shall be calculated by multiplying the costs set out in Annex IV to this order by the efficiency factor (fi) set out in Article 3 and by the ratio between actual and actual investment. it would correspond to the unit values set out in Annex II of this order to the existing installation.

Article 14. Remuneration of regulation and measurement stations.

The unit values of the Regulation and Measure Stations listed in Annex II correspond to installations with the following characteristics: Entry pressure 80 or 72 bar.

Output pressure: 16 bar. Double line of regulation and measurement, with the same equipment in each one, usually one in operation and the other of reserve. The collectors are prepared for the future installation of the third line, of the same characteristics as the previous ones. Heating system, with boilers located in another enclosure and heat exchangers on the lines of regulation. Telematics equipment. Location within the work booth. Enclosure and, where appropriate, valve position, fenced and equipped, where appropriate, of systems of patrimonial security. Flow rate at the exit of the ERM will be equal to 1.6 * (numerical value accompanying G) * output pressure (17 bar).

In the case of measurement stations, designed and constructed in accordance with the above standards, they shall be measured according to the unit values defined for the equivalent Regulation and measurement stations, corrected by a Adjustment coefficient of 0,76.

Regulatory and/or measurement and/or control facilities for gas flow or pressure, including compact installations that for any reason, do not conform to the above characteristics shall be remunerated according to actual costs audited. In no case shall that value be higher than the value of the unit values laid down in Annex II.

Article 15. Remuneration for the transfer of LNG to ships.

LNG cargo services to ships from ships ' regasification or cold-putting plants shall be paid equivalent to that which is in force as a variable remuneration for regasification. The remuneration for the transfer from ship to ship shall be 80% of that going forward

Article 16. Natural gas underground storage.

The criteria for determining the total accredited cost of underground storage must be collected in the relevant operating concession referred to in Chapter III of Title II of Law 34/1998 of 7 May 1998. October, the Hydrocarbons Sector. The Directorate-General for Energy Policy and Mines, prior to the report of the National Energy Commission, will set the date of inclusion in the remuneration regime and determine the specific values of the accredited cost.

The method of calculation of the accredited costs shall be as set out in Article 5 of this order with the following points:

The final investment will be the one actually made for the development of the storage operation, after the granting of the administrative concession of exploitation and must be justified with the corresponding audit.

The holder of an underground storage concession may also request that investments made in connection with underground storage be recognized as investment in research and exploitation. of natural gas in any area of the national territory carried out in the five years preceding the date of granting of the holding. These costs shall in no case exceed 50% of the final investment defined in the preceding paragraph and shall be justified by the relevant audit. A provisional remuneration scheme may be fixed, at the request of the holder, for the period between the granting of the holding and the date of the final entry into service, a period which may not exceed three years. In this period, the investments actually made and operating costs will be recognised on the basis of the use of the storage. The rate of return on investment will be equal to that for general transport facilities and the useful life is fixed for 20 years. Operating costs shall have two terms fixed on an annual basis and another variable depending on the gas injected and/or extracted. The fixed part shall not exceed 50% of the total operating costs.

Article 17. Provisional remuneration of installations with a date of entry into service in the year "n".

The carriers which own regasification, storage and transport facilities, which come into operation after 1 November of the year n-1 and which have not been included in the cost The Commission may request the Directorate-General for Energy Policy and Mines for the recognition of a provisional remuneration, which shall be of a revenue in the account of its final remuneration, corresponding to the costs of the exploitation, calculated in accordance with the provisions of Annex IV to this order, the following requirements are met: (a) To be in possession of the final entry into service, issued by the competent authority for authorization.

(b) Haber has been expressly included by the applicant company in the forecast of new installations referred to in Article 30 of this order.

The Directorate-General for Energy Policy and Mines will decide to expressly indicate the date from which it is recognized in such provisional remuneration.

For the purposes of application in the system of settlement of the remuneration of the regulated activities of the natural gas sector, of the accredited cost which is finally recognised for the installation, shall be taken into account, for (a) to make them, where appropriate, the amounts already received by the holder as a provisional payment as revenue.

Article 18. Cost credited to the activities of regasification, storage and transport in the year 2006 and its total remuneration.

1. Annex I to this order sets out the total amount of fixed costs for regasification, storage and transport for 2006 to each undertaking performing these activities.

The variable cost credited to the regasification activity for the year 2006 is also set out in that Annex I of this order. 2. The total remuneration for each undertaking or group of undertakings calculated in accordance with Articles 3, 4, 5 and 6 of this order shall be determined by the aggregation of the total remuneration for each undertaking or group of undertakings.

Article 19. Annual remuneration for the purchase-sale management activity of gas intended for the market at tariffs carried out by the carriers.

The annual fee for the sales management activity of gas destined for the market at tariff will be calculated according to the following formula:

RGCV = (RCV + RMT + RFE)

Being:

RCV: Specific total cost per purchase-sale of gas intended for the market at tariffs to be calculated according to the following formula:

RCV = Ci x Cmp x kWhcf

Being:

Ci = Coefficient to be fixed annually when carrying out the annual review of gas tariffs. This coefficient is established for the year 2006 equal to 0.0005.

Cmp = Unit cost in force of the raw material for the market at tariffs expressed in €/kWh. kWhcf = kWh of gas supplied to the final consumer for the market at tariff.

RMT: Total cost of the market-bound gas mermas to be calculated according to the following formula:

RMT = [(Cr x kWhr) + (Ca x kWha) + (Ct x kWht)] x Cmp

Being:

Cr, Ca, Ct = percentages of mermas of regasification, storage and transport of gas, respectively, that will be fixed in the System Technical Management Standards. For 2006 they will be equal to 0.45%, 2.11% and 0.35% respectively.

Cmp = Unit cost in force of the raw material for the market at tariffs expressed in €/kWh. kWhr = kWh of gas (LNG) discharged at the market-bound regasification plant at tariffs. kWha = kWh of gas (NG) injected into the underground storage with destination to the market at rates. kWht = kWh of gas (NG) introduced into the system of transport to the market at tariffs.

RFE: Specific total cost for financing of gas stocks destined for the market at rates calculated according to the following formula:

RFE = Cx x i x Cmp x kWhcf

Being:

Cx = Coefficient to be set annually when performing the annual gas rate review. This coefficient is established for the year 2006 equal to 0,218.

i = cost of money to be fixed each year on the basis of the Euribor three months of the previous year plus 0.5 points. For 2006 it is set at 2.66% Cmp = Unit cost in force of the raw material for the market at tariffs expressed in €/kWh. kWhcf = kWh of gas supplied to the final consumer for the market at tariffs.

For the purposes of liquidations, the terms set out in Annex II to order ECO/2692/2002 of 28 October 2002 governing the procedures for the settlement of regulated activities in the sector of the natural gas.

Article 20. Distribution activity.

1. For the purposes of applying the remuneration scheme set out in this order, the costs incurred in carrying out the development, operation and maintenance of natural gas shall be included as costs of the natural gas distribution activity. the distribution facilities intended to place the gas at the points of consumption.

2. The distribution facilities shall comprise, in addition to the distribution pipeline network with maximum design pressure included in the approval of the installation equal to or less than 16 bar, the satellite plants which supply a network of distribution and all of the assets of the communications network, protection, control, ancillary services, land, buildings, and other ancillary elements necessary for its proper operation, including the lines of connection with the network of transport and associated facilities.

They shall not be part of the specific distribution facilities for the purposes of the remuneration scheme for the exclusive use of consumer facilities.

Article 21. Remuneration of the distribution activity.

The remuneration of the distribution activity will be established for the set of the facilities of each distribution company, excluding the affected ones, taking into account the following criteria: (a) The consumption and the volume of gas vehiculado.

b) Investments and redemptions made in distribution facilities. (c) Cost of operation and maintenance of the facilities, applying criteria for improvement and efficiency. (d) Characteristics of the distribution areas. e) Security and quality of service. (f) Other costs necessary for the development of the distribution activity.

The revenue corresponding to the rights of the affected will be invoiced directly by the distribution companies and will not be included in the costs recognized by the distribution activity nor will be subject to the liquidations.

It will also be established by the Ministry of Industry, Tourism and Trade, after a report from the National Energy Commission, a mechanism to encourage the improvement of the quality of supply and the achievement of reductions. (a) additional gas losses in respect of which they are predetermined, taking into account the amounts to be determined for the purposes of the standard by which the gas charges for each year are approved.

Article 22. Update of the distribution activity.

1. The overall remuneration for the distribution activity shall be updated annually on the basis of the HPI and considering the growth of the activity concerned with efficiency factors. This calculation shall be carried out on the basis of the following formula:

RDn = RDn-1 x [1 + IPHn x 0.85] x (1 + ΔAcl <4 x Fcl <4 + ΔAD < 4 x FD < 4 + ΔAD> 4 x F4E4)

Being:

RDn-1 = the distribution cost for the previous year, revised in accordance with paragraph 4.

ΔAcl <4 = variation in the number of connected consumers in networks with design pressure of less than or equal to 4 bar, calculated as the ratio between the average number expected for the year in which the remuneration is determined and the average value of the previous year. Fcl <4 = weighting factor and consumer uptake efficiency in networks with design pressure of less than or equal to 4 bar. The value of this factor for the year 2006 is fixed at 0.426. ΔAD < 4 = total demand variation for gas in networks with design pressure of less than or equal to 4 bar calculated as quotient between the forecast for the calculation year and the actual year of the previous year. FD < 4 = weighting factor and total demand efficiency in networks with design pressure of less than or equal to 4 bar. The value of this factor for the year 2006 is fixed at 0.142. ΔAD> 4 = change in total demand for gas in networks with design pressure between 4 bar and 60 bar, calculated as the ratio between the forecast for the calculation year and the actual year of the previous year. Fcen 4 = weighting factor and demand efficiency in networks with design pressure comprised between 4 bar and 60 bar. The value of this factor for the year 2006 is fixed at 0.142.

2. The factors of weighting and efficiency of consumer uptake, of the demand in networks with design pressure between 4 bar and 60 bar and less than or equal to 4 bar will be established annually, depending on the evolution of the demand, improvements in productivity and economic developments, when the annual review of gas tariffs is carried out.

3. From the figure RDn will be obtained the average unit remuneration for each new consumer, for each new kWh supplied at pressures less than or equal to 4 bar and for each new kWh supplied at pressures between 4 and 60 bar. The increase in remuneration for each distribution company shall be calculated by multiplying the average unit remuneration prior to the increase in sales and consumers of each of them. 4. For the calculation of the remuneration for the year n, the value of the remuneration for the year "n-1" (RDn-1) shall be recalculated by replacing the demand forecasts with the actual values used for the calculation of the year "n" update. Any deviations from the previous recalculation shall be taken into account at the undertaking level in the accounts for the year 'n'. 5. On the order of the Minister of Industry, Tourism and Trade, prior to the report of the National Energy Commission, it will be established before 1 January of each year the remuneration to be paid to each distribution company, based on the the overall remuneration calculated in accordance with the above paragraphs. 6. In Annex V to this order, the total remuneration for the total distribution costs for the year 2006 as well as that of each undertaking performing this activity is established.

Article 23. Inclusion of new distribution companies in the remuneration scheme.

The inclusion of a new distribution company in the remuneration regime will require the application by the same to the General Directorate of Energy Policy and Mines, accompanying the same: 1. Memory of activity in which the forecast of consumers and consumption will be recorded in the first 5 years of operation, investment plan, geographical area of action (area and number of inhabitants) and account of provisional results.

2. Resolution of administrative authorisation. 3. The placing in service or certification of the corresponding Autonomous Community of gas installation of the facilities.

The Directorate-General for Energy Policy and Mines will resolve the inclusion in the remuneration regime with an express indication of the date of inclusion in the scheme and the annual remuneration recognised.

The initial annual remuneration shall be determined by applying the unit values referred to in Article 22 (3) to the consumer and consumption forecast for the first year of operation. In the second year of operation, the initial remuneration shall be adjusted in accordance with the actual demand figures.

Article 24. Specific remuneration for distribution facilities.

One. The distribution undertakings which have concluded agreements with the Autonomous Community concerned to undertake the gasification of population cores which do not have natural gas may request specific remuneration from the Directorate-General Energy Policy and Mines for connection facilities. Such remuneration may also be requested to replace existing liquefied natural gas (LNG) satellite plants with a connection to the pipeline network.

To qualify for such remuneration, the following conditions must be met:

(a) There is an agreement with the Autonomous Community.

b) That the remuneration for the distribution and supply-to-tariff activity together with the committed contributions of public funds for the construction of the distribution facilities are sufficient to ensure the profitability of the distribution project. (c) the situation of the core requires investments in connection facilities with the existing gas network that make the project economically unviable. (d) that the construction of the facilities should be initiated in 2006 or in 2007.

Two. Applications for specific remuneration for distribution must be made prior to 30 April of the current year, including applications made in 2006 for those installations whose construction is to be started in that year. or in the following year, accompanying the request for the following documentation:

Technical description of the installation.

Investment budget, broken down by the specific remuneration requested. Study of the potential market over a 30-year horizon, justifying those cases in which there is a strong growth of the population in the core with respect to the population censured at present. Investment analysis of population core gasification without connection installation (30-year horizon). The analysis shall include, where appropriate, the contributions of public funds to the distribution facilities. Investment analysis of the gasification of the population core including the investment in the connection facility (30 years horizon) In this analysis, the contributions of public funds for the installation of the plant will have to be included distribution and connection. Contributions from Public Funds. Quantification of the requested remuneration. Convention with the Autonomous Community.

In order to homogenize the information of the different projects, the Directorate General of Energy Policy and Mines will establish standard formats for the investment and market analysis of the different projects, You must provide on the support you are indicating.

Three. The agreements concluded between the distribution company and the Autonomous Community must individually collect the population cores to be gasified, the necessary facilities, the contributions of the Autonomous Community in their case (broken down the contributions for the installation of the connection and the distribution system), and the necessary specific remuneration, as well as the timetable for the implementation of the projects. Four. The General Directorate for Energy Policy and Mines will jointly resolve the requests received, after the National Energy Commission has submitted its report and according to the following criteria:

Applications shall be valued directly for the contribution committed by the Autonomous Community and/or other public entities, for each of them, and in inverse function to the specific contribution requested.

Those projects whose investment will have an impact on a larger number of consumers will be first and will be penalized those whose investment by consumers is very high. The specific remuneration for a project shall in no case exceed 10% of the amount available for the annual specific remuneration for the sector as a whole.

In order to determine the amount of the specific remuneration, account shall be taken of the increase due to the application of the general system developed in this Ministerial Order for the remuneration of the distribution companies, the contribution of other bodies and a return equivalent to that used in transport facilities. The specific remuneration granted for each Project shall in no case exceed the minimum of the following amounts:

Specific remuneration necessary to ensure a cost-effectiveness of the project equivalent to that used for transport facilities.

Specific remuneration needed in such a way that the contribution of the Autonomous Community and other public funds for the investment in connection is more than 85% of the investment in connection. The specific remuneration will be awarded in a single payment, once the installation and the contribution of the Autonomous Community are credited, by means of Resolution of the General Directorate of Energy Policy and Mines and will be integrated into The remuneration of the distribution company in force, once it is accredited to comply with the requirements set out in the aforementioned Resolution, including the corresponding implementation act of the facilities. For the year 2006, the annual specific remuneration for the sector as a whole shall in no case exceed the following amount:

RDn = 23,000,000 €-RTS

RDn: Maximum distribution specific retribution allocated for the year 2006.

RTS: Remuneration for new secondary transport facilities in year n-1 plus the remuneration for new secondary transport facilities in the years n-2 and n-3 which would not have been deducted from the total amount allocated to the specific remuneration in years n-1 and n-2.

Article 25. Municipalities with specific remuneration accredited.

In accordance with Article 22 of the Ministerial Order ECO/31/2004 establishing the remuneration of regulated activities in the gas sector, dated 1 February 2005, the Director General of Energy and Mines Policy Resolution establishing the municipalities with the right to receive such specific remuneration for connection facilities, initiated in 2004.

The distribution companies that during the year 2005 have sent to the Ministry the act of putting into service the connection facilities of the municipalities, together with the remuneration accredited by this concept, are listed continuation:

		Specific retribution - (€)
Gas, S.A.U.
The Barriers	173.205
Medina Sidonia	223,500
The Port of St. Mary	378,900
Torredonjimeno	191,910
Field Tower	200.500
Distributor Regional del Gas, S.A.
	Iscar	134,400
Wet	121,500
Stephen Pedrajas	238,500
Natural Gas SDG, S.A.
Alhaurin	3.077.900
Lorca	Alhama of Murcia
	374,320
	Alameda	132.760
Sant Pere de Vilamayor	92.450
Gas Galicia SDG, S.A.
	Bayonne	385,660
Gondomar	447.550
Vilanova Arousa	398,870
Cambados	324,070
Naturcorp Networks, S.A.U.
Ovid-Olloniego/Tudela Veguin	414.310
Total	9.033.605

In accordance with Article 22 of the order ECO/31/2004, the specific remuneration shall be included in the remuneration scheme in the year following that of its entry into service. Such remuneration has been included in the total remuneration figure included in Annex V to this order.

In the case of those connection facilities that have been assigned specific remuneration by the Resolution of 1 February 2005 and whose commissioning is carried out during the year 2006, the General Directorate of Policy Energy and Mines will dictate the corresponding inclusion resolutions in the settlement system of the current year, once the established requirements are established.

Article 26. Supply activity at rates.

1. For the purposes of applying the remuneration scheme laid down in this order, the costs incurred by the distributors necessary to meet the costs of the supply of natural gas at tariff rates are included as costs. Consumers at tariff.

2. These costs shall include the own costs of supply, the gas flows in the distribution networks to meet these supplies and the cost of working capital arising from the financing between the payment and the collection of the raw material. 3. The costs relating to the measuring equipment, to the affected equipment, to the inspections and any other costs not strictly necessary for the provision of the tariff are not included. These costs will be charged directly by distributors to consumers and are not subject to the settlement procedure.

Article 27. Remuneration of the supply activity at rates.

1. The Minister for Industry, Tourism and Trade, after reporting by the National Energy Commission, shall establish before 1 January of each year the remuneration to be paid to the distribution companies for the gas supply activity. at rate.

2. The remuneration of the gas rate supply activity shall be calculated according to the following formula:

RSn = RASn + RMDn + RCin Being: RASn: specific cost for customer care activity at rates that will be calculated according to the following formula: RASn = (CSn-1 <4 x kWhcn <4 + CSn-1 > 4 x kWhcn> 4) x [1 + IPHn x 0.85]

Being:

CSn-1 <4 = design pressure at design pressure equal to or less than 4 bar expressed in €/kWh. For 2006 this coefficient shall be equal to 0,002061 €/kWh.

kWhcn <4 = kWh of gas supplied to the regulated market at rates for consumers connected to pipelines whose design pressure is less than or equal to 4 bar. CSn-1 > 4 = design pressure at design pressure greater than 4 bar expressed in €/kWh. For 2006 this coefficient shall be equal to 0,000292 €/kWh. kWhcn> 4 = kWh of gas supplied to the regulated market at rates for consumers connected to pipelines whose design pressure is greater than 4 bar. IPHn has the meaning already defined in the above points of this order.

RMDn: cost of gas merges in distribution networks to be calculated according to the following formula: RMDn = [Cr <4 x kWhcn <4 + Cr> 4 x kWhcn> 4] x Cmp Being: Cr < 4, Cr> 4 = percentages of gas distribution mermas in Pressure nets of less than or equal to 4 bar and more than 4 bar respectively, which shall be those set in the System Technical Management Standards. For 2006 they will be equal to 1% and 0.39% respectively. In the case of distributions supplied from liquefied natural gas (LNG) satellite plants or by manufactured gas from propane, the coefficient of pressure distribution mermas ≤ 4 bar, Cr < 4, is 2%.

No distribution in pipelines of a maximum design pressure greater than 16 bar shall be recognised unless its existence is justified.

kWhcn <4 = kWh of gas supplied to the regulated market at tariffs, of consumers connected to pipelines whose design pressure is less than or equal to 4 bar.

kWhcn> 4 = kWh of gas supplied to the regulated market at tariffs, of consumers connected to pipelines, whose design pressure is greater than 4 bar. Cmp = Unit cost in force of the raw material for the market at tariffs expressed in €/kWh.

RCin: specific cost for the financial needs arising from the difference between the payment of the raw material and the charge to the customer at rates to be calculated according to the following formula: RCin = Cz x i x Cmp x kWhcn Being: Cz = Coefficient to be fixed annually when carrying out the annual review of gas tariffs. This coefficient is established for the year 2006 equal to 0.04.

i = cost of money to be fixed each year on the basis of the Euribor three months of the previous year plus 0.5 points. For 2006 it is set at 2.66% Cmp = Unit cost in force of the raw material for the market at tariffs expressed in €/kWh. kWhcn = kWh of gas supplied to the regulated market at tariffs. 3. For the purposes of liquidations, the terms set out in Annex II to order ECO/2692/2002 of 28 October 2002 governing the procedures for the settlement of regulated activities in the natural gas sector shall be used.

Article 28. Remuneration for the activity of the System Technical Manager.

1. The Minister of Industry, Tourism and Trade, prior to the report of the National Energy Commission, will determine before 1 January of each year, the remuneration to be paid to the Technical Manager of the System, for the exercise of this activity. This cost shall be included as a cost to pay for regulated activities and shall be subject to the winding-up procedure.

2. For these purposes, the Technical Manager of the System shall, before 1 December of each year, communicate to the Ministry of Economic Affairs, the costs of operation, communication and control, as well as other costs which it considers necessary for the development of its activity, in the terms of Article 24 (3) of Royal Decree 949/2001 of 3 August.

Article 29. Remuneration for companies distributing manufactured gases other than natural gas in extra-island territories.

For the purpose of the recognition of the remuneration for this concept and in accordance with the provisions of the Additional Disposition First of Royal Decree 949/2001 and with the information submitted by the company it is established that for the year 2006 the provisional unit differential cost corresponding to the activity of distribution of manufactured gases other than liquefied natural gas in extra-island territories is set at 0,0199070 €/KWh.

Annually the Company will present an Audited Memory with the actual costs of purchase of raw material incurred during the year and the difference between the monthly purchase price of propane will be analyzed. declared by the beneficiary and the value of the cost of the raw material used for the production of the maximum monthly price for piped LPG. For this purpose, the average of the available months of the year will be compared with the average value of the last thirty-six months, with a lower definitive unit cost being recognised in the case of a higher divergence than the previous one. 10%

Article 30. Reporting obligations of companies holding facilities for regasification, storage, transport, distribution and management of the system.

1. In order to determine the costs recognised for each installation and the corresponding remuneration, the carriers shall communicate to the Directorate-General for Energy Policy and Mines of the Ministry of Industry, Tourism and Trade, and to the Commission National Energy, before 1 November of each year, the technical and economic data concerning new installations put into service, extensions, modifications, transmissions and closures corresponding to the last twelve months. In order to determine the rates and tolls, they shall also send a list of the installations whose commissioning is scheduled for the following 12 months, indicating the data above and the expected date of entry into service.

2. In order to determine the fees, tolls and charges for each year, all undertakings or groups of undertakings submitted to the settlement process must submit to the Technical System Manager and the National Energy Commission, before the 15th day of October of each year, the data relating to the forecast demand for the end of the year and the following year, specifying, among others, the consumption and number of consumers supplied, the contracted capacity, sales and consumers incorporated, all by level of pressure, supply type and volume range, disaggregated for the regulated market and for the liberalised market. The Technical Manager of the System shall communicate to the General Directorate of Energy Policy and Mines of the Ministry of Industry, Tourism and Commerce, and to the National Energy Commission, before 1 November of each year, the demand data received from the companies duly integrated for the sector as a whole. 3. Gas carriers and distributors must forward to the General Directorate of Energy Policy and Mines and to the National Energy Commission, duly audited, before 30 June of each year the financial statements, annual accounts and the management report for the previous financial year, as well as the breakdown of annual accounts by regasification, storage, transport, gas sales management, distribution and supply-to-tariff activities, indicating the criteria used. 4. The Directorate-General for Energy Policy and Mines and the National Energy Commission may ask companies or groups of companies for any other information necessary to be able to determine tolls, fees or charges, as well as for set the remuneration for the regulated activities of each year.

Article 31. Billing and recovery of remuneration.

The billing and recovery of the remuneration of the activities regulated in this order shall be carried out in accordance with the settlement procedure set out in Chapter V of Royal Decree 949/2001 of 3 August and developed by order ECO/2692/2002 of 28 October 2002 regulating the procedures for the settlement of the remuneration of regulated activities in the natural gas sector and of quotas with specific destinations and establishing the system of information to be submitted by the companies.

Article 32. Security installations prior to Law 34/1998 of 7 October of the Hydrocarbons Sector.

The treatment set out in the Sixth Transitional Provision of Law 34/1998 of 7 October and the Second Transitional Provision of Royal Decree 949/2001 of 3 August for the facilities to provide the appropriate the system which would have been the subject of a concession is included in the calculation of the remuneration for the regasification, transport and storage activities carried out in this order.

Additional disposition first. Secondary Transport pipelines.

1. Holders of pipelines with design pressure of less than 60 bar and more than 16 bar having obtained the authorization to carry out the installations before 20 January 2004 may apply to the Directorate-General for Policy Energy and Mines which, in the calculation of the remuneration corresponding to that installation, apply the reference unit values obtained by means of the following formula: C = C > 60 bar, where C> 60 bar the corresponding unit value of the the reference for investment and operating costs for transport pipelines in accordance with the installation characteristics and date of commissioning.

2. Where the Directorate-General for Energy Policy and Mines has issued a Resolution of inclusion in the remuneration scheme for an installation which is in the case described in paragraph 1, the holder of the same may apply to the Directorate-General for Energy Policy and Mines a review of the above Resolution to implement the calculation methodology set out in the previous paragraph. 3. In all cases the applicant shall provide the supporting documentation that the requirements laid down in this additional provision are met.

Additional provision second. Regulation and Measurement stations with input pressure of less than 60 bar.

1. The owners of stations for regulation and measurement with design input pressure of less than 60 bar who have been authorised to carry out the installations before 20 January 2004 may apply to the Directorate-General for Energy policy and Mines which, in the calculation of the remuneration corresponding to the said installation, apply the reference unit values obtained by the following formula: C = C > 60 bar, where C> 60 bar the corresponding value Unit of reference of investment securities and operating costs for Regulation and Regulation Measure (P > 60) which corresponds to it according to the characteristics and the date of entry into service of the installation.

2. Where the Directorate-General for Energy Policy and Mines has issued a Resolution of inclusion in the remuneration scheme for an installation which is in the case described in paragraph 1, the holder of the same may apply to the Directorate-General for Energy Policy and Mines a review of the above Resolution to implement the calculation methodology set out in the previous paragraph. 3. In all cases the applicant shall provide the supporting documentation that the requirements laid down in this additional provision are met.

First transient disposition. Cost of storage vessels during the Winter Plan for liquefied natural gas destined for the regulated market.

The Directorate-General for Energy Policy and Mines is authorized to issue a Resolution of Remuneration Recognition to the Technical Manager of the System to cover the costs of storage of liquefied natural gas on ships with destination the regulated market, as detailed in the Winter Plan, approved by Resolution of the Directorate General for Energy Policy and Mines of 28 November 2005.

To dictate the previous Resolution, the System Technical Manager must send to the General Directorate of Energy Policy and Mines sufficient information to prove the actual costs incurred. For the purpose of imputation of costs to the regulated market, for the calculation of the regulated tariffs, an estimated € 8,500,000 in this concept.

Second transient disposition. Purchase of natural gas during 2006, for the minimum level of filling of the tanks of the regasification plants and the transport network.

During the year 2006, hauliers holding regasification plants will acquire the necessary natural gas corresponding to the minimum level of filling of the pipelines of the transport network and the minimum operational level of the regasification plants. These will acquire such gas to the carrier responsible for the supply at tariff during the period from 1 June to 30 September 2006, at the price of the Cost of Matter Prima in force at the time of the purchase.

The Directorate-General for Energy Policy and Mines is authorised to issue a resolution recognizing the cost of the financial remuneration corresponding to the investment made, valued at the reference rate of "10-year State obligations plus 3%".

Transitional provision third. Telemedida.

The distributor or carrier "i" which on March 1, 2006 has consumers with consumption of more than 5,000,000 kWh/year without a functioning telemedide equipment, will have reduced their fixed fee credited to the settlement period 't' (RFit, as defined in order ECO/2692/2002 of 28 October 2002, for which settlement procedures are regulated), in the following amount:

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Where: Dit * = Consumption in the "t" period of consumers with consumption above 5,000,000 kWh/year of the "i" distributor that are not being telemedidos.

Ri = Accredited annual remuneration of the distributor or carrier "i" for the year 2005 and set out in Annex V, column "(1) + (2)", of the order ITC/102/2005, of 28 January. Di = Total demand for the year 2005, from the "i" distributor or carrier. In the event that no final closing figure is available, the best approach will be taken. j = year in progress.

This amount will be calculated on a monthly basis by the National Energy Commission and the amounts deducted will be considered as liquidable system revenues.

Transitional disposition fourth. Remuneration for industrial consumption provided at less than 4 bar to which the tariff or toll of group 2 applies.

For the purposes of the monthly settlement, the National Energy Commission will reduce the established fixed remuneration for the "t" period (RFit, defined in order ECO/2692/2002 of 28 October 2002, for which the settlement procedures), of distribution companies with industrial consumers supplied with less than 4 bar to which the tariff or toll of group 2 applies, in the following quantity:

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Where: Dit * = Amount of natural gas (consumed in the liquidation period "t" by the industrial consumers of the distributor "i" supplied at pressures less than or equal to 4 bar to which the tariff is applied or the toll of group 2.

Ri = Accredited annual remuneration of the distributor "i" for the year 2005 and set out in Annex V, column "(1) + (2)", of the order ITC/102/2005, of 28 January. Di = Total demand for the year 2005 from the "i" distributor. In the event that no final closing figure is available, the best approach will be taken. j = year in progress.

The amounts deducted will be considered as liquidable system revenue.

Single repeal provision. Regulatory repeal.

At the entry into force of this order, any provision of equal or lower rank is hereby repealed as soon as it is opposed to the provisions of this order.

Final disposition first. Enabling for the application of the order.

The Directorate-General for Energy Policy and Mines are hereby authorized to issue the necessary resolutions for the implementation of this order.

Final disposition second. Entry into force.

This order will enter into force at zero hours of January 1, 2006.

Madrid, 27 December 2005.

AGUILE MONTILLA

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