CNMC Approves The ‘Rescue’ Of Small Electricity Marketers

The National Commission of Markets and Competition has decided to “rescue” the small electricity marketers. The body chaired by Cani Fernández, has given its approval to a legal amendment that will allow these small electricity companies a financial break from the rise in prices in the wholesale market.

The market operator Omie proposed on October 20 to the CNMC to modify the Rules of the daily and intraday electricity production market to include a mechanism that allows agents to fully or partially anticipate the payment of their settlements in the market. These payments will be made prior to the issuance of the weekly debit note, thus releasing its payment obligations before the due date of the invoices and therefore reducing the volume of guarantees necessary to operate in the market.

This measure seeks to help mitigate in part the liquidity problems that these small companies may have, being a solution that can be implemented quickly and without jeopardizing the current processes of guarantees and collections and payments of the market operator. The CNMC considers that these procedures are already especially overloaded in the current price situation and due to the high exchange of payment guarantees that is being managed, as well as the effects that the liquidity problems of many have on market collections and payments agents.

The CNMC, in fact, has already opened 17 files to different marketers for alleged breaches of their obligations.

The measure, however, will take effect once Omie has been able to adapt its systems.