Overview
- The Council of State endorsed the financial rate methodology but rejected the new distribution remuneration model as potentially violating the Electricity Sector Law.
- Its objections focus on capping remunerable investments and tying pay to demand growth, arguing a regulated essential service should not be exposed to such risk.
- Industry sources contend that any substantial change requires a fresh public hearing, a step they say cannot be completed before the end of the year.
- Power companies threaten court action if the CNMC revises the text without proper procedure, while the ATE urges withdrawal of the draft and a prorogation of the current cost‑audited method.
- If no legally robust fix is ready, the fallback is to extend the existing regime with a 5.58% rate, compared with the CNMC’s proposed 6.46% and roughly 7% sought by companies.