Investor Presentaiton
Total remuneration
New regulation RAB-based with standard values
and ex-ante recognition of investments
Distribution
EM
endesa
Overview of remuneration framework for distribution activities applicable from 2015
First regulatory period: 2015-2019 (6-year regulatory periods thereafter)
Investment remuneration
Financial
Remuneration 1
(RAB)
Depreciation 2
■ RAB defined for each distribution company, based on unit standard costs
■ Remuneration:
■ 6.5% allowed pre-tax return over Net Regulatory Asset Base (RAB)
■ 2-year delay vs. date of investment, adjusted by a time-value factor
■ Investments valuation:
■ Asset base at 31/12/13: at replacement cost based on standard costs
■ Investments from 1/1/14: financial remuneration + 50% of the difference
between real and standard cost, if real cost < standard
■ Total annual (linear) depreciation calculated from useful life of RAB
O&M
remuneration
3
■Standard cost model with potential upsides
Other
incentives
4 ■Includes incentives for quality of service, reduction of losses and fraud recovery
Note: O&M including personnel costs.
CNMC estimate of Endesa 2014 net RAB: €11.4bn
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