Law 12/2007 of 2 July amending Law 34/1998 of 7 October of the hydrocarbon sector in order to adapt it to the provisions of Directive 2003 /55/EC of the European Parliament and of the Council of 26 June In 2003, on common rules for the internal market for natural gas, it amended Article 93 of the Law on the Hydrocarbons Sector, defining the rate of last resort.

The Agreement of the Council of Ministers of 3 April 2009 amending the schedule initially provided for in the transitional provision of Law 12/2007 of 2 July 2007 amending Law 34/1998, of the 7 October of the Hydrocarbons Sector in order to adapt it to the provisions of Directive 2003 /55/EC of the European Parliament and of the Council of 26 June 2003 on common rules for the internal market 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%.

Also, Law 34/1998 of 7 October provides for the transitional regime of gases manufactured in island territories, so that until the completion and implementation of the facilities that allow the supply of The supply of manufactured gases may be carried out by the distribution companies. 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 January 2017, will be as follows:

				Tarifa
		Fixed (euros/client) /month	Variable cent/kWh
TUR.1	Consumption less than or equal to 5,000 kWh/year	4.31	5.046543
TUR.2	Consumption greater than 5,000 kWh/year and less than or equal to 50,000 kWh/year	8.45	4,359143

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 January 2017, shall be as follows:

			Tarifa
		Fixed (euros/client) /month	Variable cent/kWh
T. 1	Consumption less than or equal to 5,000 kWh/year.	4.31	5.046543
T. 2	Consumption exceeding 5000 kWh/year and less than or equal to 50,000 kWh/year.	8.45	4,359143
T. 3	Consumption exceeding 50,000 kWh/year and less than or equal to 100,000 kWh/year.	60.38	3.737765
T. 4	Consumption exceeding 100,000 kWh/year.	181.72	3,427265

Third.

The values of the parameters defined in Article 6 (5) of the Calculation Methodology Order, and their updates, are as follows:

Tmship: 110,199 m3.

Cm1 (TUR.1): 2,350 kWh.

Cm2 (TUR.2): 8.414 kWh.

fc: 0.36.

% LNG: 0.42.

fconv: 6,824 kWh/m3 LNG.

Emax (TUR.1): 17 GWh/day.

Emax (TUR.2): 45 GWh/day.

GNd (TUR.1): 17,419 MWh/day.

GNd (TUR.2): 47,603 MWh/day.

Consumer number TUR.1 (n1): 4,384,905.

Consumer number TUR.2 (n2): 3.126,822.

mr = 0.005%.

mt = 0.2%.

md = 1%.

Fourth.

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

Cn

1,927731

Cost Cost	Top Components (cent/kWh)
	Gas	Seasonal Gas
Reference
RBn	Ren
1,872997	1,814520

47.5830

	BR6n ($/Bbl)	Tn ($/ €)	PRQ	NBP (cent/kWh)
1.083112	0.035720	1,814520

Fifth.

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 for which the various Resolutions in force apply. The resulting consumption shall be applicable to the price in force for each period, which shall include the taxes in force in the period.

Sixth.

This resolution shall take effect on 1 January 2017.

Against this resolution, and in accordance with the provisions of Articles 121 et seq. of Law 39/2015 of 2 October 2015 on the Common Administrative Procedure of the Public Administrations, may be brought an appeal to the Secretary of State for Energy within a period of one month from the day following that of its publication.

Madrid, December 29, 2016. -Director General of Energy Policy and Mines, Maria Teresa Baquedano Martin.