Falling demand could land consumers with compensation bill
CNE, regulator for the Spanish electricity industry, has said that if electricity demand does not increase by the 4.6% forecast by the government, tax revenue may not be enough to meet the Euro 515 million compensation due to creditors for the closure of three nuclear plants in the provinces of Guadalajara, Vizcaya and Badajoz. In that event a state guarantee would come into effect to fund the deal, although the government has forecast that this year, more than 3% of revenue from energy taxes will be allocated to financing the moratorium, raising Euros 525 million.