New invoicing system in Spain: The invoice for the January-production will only be paid at a 25%-stake

Madrid - DIKEOS ABOGADOS advises that the Spanish legislator has implemented a new invoicing system for production periods as of January 2014, for the settlement of the energy feeded into the grid by the photovoltaic plants in Spain. Thereby the former practice to realize provisional and definitive liquidations in the cycles M+1, M+3 and M+11 will by replaced by a new system, that establishes „accumulative invoices“ for the ongoing monthly productions. Thus, the February invoice covers the production of January, the March-invoice covers the accumulated production from January and February and so on.

Further, an additional, drastical amendment is implemented, which will trigger significant distorsions of the cash-planning for the photovoltaic plants in Spain: The CNMC may pay the production invoices only with funds that the CNMC itself has obtained from the Spanish electrical system. Thus, the production invoices will only be paid insofar as the CNMC disposes of liquid funds.

Last Thursday the CNMC has resolved to pay the January-production at a 25%-stake. This quite low stake was to be expected as the CNMC typically disposes of only few liquid funds at the beginning of the year. The accumulated invoices will be paid at higher stakes in the upcoming months. However there will be important distorsions in the cash-situation of the plants.

This new regulation is independent of the implementation of the completely new remuneration system for renewable energy-plants in Spain, by which the former payment of a feeding in-tariff for the monthly production will be abolished and a system of lump sum-payments that provide for a full life time-profitability of 7,5% of the plant will be established. In January 2014 the Spanish government has presented specific numbers thereon. It is to be expected that the new system will start to be effectively applied in Summer 2014. The CNMC has announced to compensate any over-payments under the old system from the period since August 2013 through the first nine invoices issued under the new system.


Madrid, March 17, 2014


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