Regulatory Alerts2011-10-11
Royal Decree 1307/2011 of 26 September modifying Royal Decree 437/2010 on the securitization of the Spanish electricity system deficit
The Spanish Ministry of the Presidency issued Royal Decree 1307/2011 to modify the regulatory framework for the securitization of the electricity system deficit, specifically defining the pricing and transfer conditions for 2010 temporary settlement imbalances up to 2.5 billion euros. The decree introduces a simplified sales procedure for financial instruments, allowing the Deficit Securitization Fund to select underwriters competitively based on criteria such as price, volume, and term to minimize financing costs. It further empowers the Interministerial Commission to approve prices for these simplified sales operations and select the subscribing entities, ensuring competitive market conditions.
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