The board of directors of the National Markets and Competition Commission (CNMC) approved in its session on Tuesday the dismissal of Ismael Bahíllo as deputy director of Economic-Financial Regulation and Regulated Prices of the organization, at the proposal of its president, Cani Fernández.
The dismissal, which was already on the agenda sent to the directors last Friday, occurs between over-remuneration of the electrical networks for the next six years and the beginning of the preparation of those corresponding to the natural gas networks that have to come into force in October 2026. And seven months before the end of Cani Fernández’s term as president of the CNMC.
Sources in the sector attribute the termination of Bahíllo, which will take effect on January 1, from the electrical networks, specifically, the one that sets the financial remuneration rate (TRF) for electrical distribution until 2031, for which it would have requested an improvement compared to the proposal. Not in vain, the design of said rate has been the responsibility of his department. However, other sources assure that the relationship of the dismissed technician with his immediate superior, the Director of Energy, Rocío Prieto, and with the president herself, “had been bad for a long time.” Bahíllo had been deputy director of Regulation and Competition in the former National Energy Commission (CNE), one of the sector regulators that merged into the CNMC in 2013. Since then he has held his current position.
The dismissal of the deputy director of Regulation has caused a great surprise in the sector since it occurs “in the final stretch to approve the networks’ circulars and just over half a year after the president’s departure” since “in the last months of mandates a lower profile is usually maintained.”
Asked about this decision, the CNMC points out that “the appointment and dismissal of the CNMC management team (directors and deputy directors) corresponds to the Plenary. The directors have no power in this matter.” And regarding the circulars for the new remuneration period, he adds that “the Plenary Session has supported the work carried out by the technical services of the subdirectorates involved and has validated the proposals submitted by the Energy Directorate.” However, article 18.3 of the CNMC Statutes establishes that in the appointment and dismissal of deputy directors the Director of Energy “must be heard”, in this case, Rocío Prieto.
In the Council of State
The large electricity companies, Endesa, Iberdrola, Naturgy and EDP, and the employers’ association Aelec, presented on Monday before the Council of State the latest allegations regarding the regulatory proposal that they had received last week from the CNMC, which must now wait for the Council of State to return the file with or without objections. The circulars must be approved before December 28 so that they can come into force on January 1. Otherwise, the current remuneration, with a TRF of 5.58%, would be extended for six years.
The proposed TRF, 6.58%, is considered insufficient by companies, which aspire to a minimum of 7%. Furthermore, a second circular establishes a new methodology for calculating distribution remuneration, which those affected, in addition to , and the Ministry for the Ecological Transition itself consider “discriminatory” with respect to high voltage transport networks, since from now on risk is introduced in distribution investments and not in transport investments, for which the same percentage has been set.
Although in its policy guidelines it considers that the proposals are aligned with said policy, it points out that it is necessary to take into account the different risk profile that distribution and transportation will have and warns against incentivizing gas infrastructures, as they are not a commitment to the energy transition.
The companies, which have presented separate allegations, agree in arguing before the Council of State that the rate proposed by the Commission is “discriminatory” with respect to those of gas networks and other regulated sectors, such as telecommunications, airports or railways, in which risk is assumed, that is, investments are remunerated based on the evolution of demand. Furthermore, they insist, the TRF of the transmission networks is at the same level as distribution, when these Red Eléctrica infrastructures continue with the previous model without risk.
