Correction of the tariff deficit in the electricity sector (Royal Decree-Law 14/2010)

The Royal Decree-Law 14/2010 seeks to reduce the tariff deficit currently burdening the electricity sector. To do so, emergency measures ranging form 2011 to 2013 have been taken by the Cabinet of Ministers. The main measures are: - As of January 1st 2011, electricity generators from both special and ordinary regimes will be required to pay a fee of a value equal to EUR 0.50/MWh for electricity fed into the grid. - As already witnessed for wind and thermal power installations, the number of equivalent hours of solar photovolatic generated electricity eligible for government support is limited. Once that limit is reached, the excess electricity generated by that particular installation during that particular year will not be supported and will be sold at the wholesale electricity market price. Between 2011 and 2013, the share of equivalent hours will remain as established in the Renewable Energy Plan 2005- 2010 and concerned power stations will then enjoy three extra years of Government support, scaling up the support period from 25 to 28 years.

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