Compensation mechanisms for Electro-intensive Consumers

Compensation mechanism for Electro-intensive Consumers for the charges for the financing of the specific remuneration for renewables and high efficiency cogeneration and for the additional financing in non-mainland territories.

Regulated by Royal Decree 1106/2020, of 15 December, which regulates the Statute of Electro-intensive Consumers, its essential objective is to provide certain industrial companies, specifically those in whose production processes electricity consumption is particularly burdensome and compromising for their competitiveness, with a legal and economic framework for electricity supply to help them mitigate the adverse effects of their high energy costs.

The objective of the mechanism is to compensate electro-intensive consumers in sectors listed in the Annex, based on the intensity of their electricity use, and their exposure to international trade.

Maximum aid intensity

Up to 85% of the chargeable costs of the specific remuneration for renewable energy and high-efficiency cogeneration, and of the specific remuneration in NPT, passed on in the electricity price.

Beneficiaries of the mechanism

• Private companies owning a supply point or installation.
• Validly constituted.
• Electro-intensive consumer certification.
• Activity included in the annex to the Royal Decree.
• Having borne charges in electricity supply prices in the previous period.

Characteristics of the mechanism

• Call for applications and granting of aid on a yearly basis.
• Verification report accompanying the application.
• Actual parameters for calculating aid:
  • Tolls paid in 2021, the “implicit charge” will be calculated from the tolls paid (In the future, the charges paid will be taken into account directly).
  • Voltage level of the installation (for the calculation of the implicit charge).
  • Electricity consumption.
• Distribution of consumption and tolls paid between eligible and ineligible activities.

Verification process

The application shall be accompanied by an Explanatory Report and a Verification Report issued by an ENAC-accredited greenhouse gas emission allowance trading scheme verification entity.

The verification process will consist of checking:

• That the energy consumptions are destined to activities listed in the Annex of RD 1106/2020.
• Actual electricity consumption and access tolls paid during the year prior to the year of the call, related to eligible activities.

Content of the Explanatory Report, which will include the calculation methodology and other relevant issues.

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