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Spain: CNMC pressures gas companies to act as ‘Market Creators’

By  |  October 23, 2017

Spain’s National Commission for Markets and Competition (CNMC) will seek to promote the obligation for the country’s two dominant operators in the natural gas sector, Endesa and Gas Natural Fenosa, to act as ‘market creators’ within the organized Mibgas market.

The CNMC’s measure is part a series of recommendations contained in a report on the functioning of the wholesale gas market and the level of competition in the organized gas market (Mibgas).

The initiative, presented earlier this year by Minister Álvaro Nadal, is seen as a means to contain recent price hikes in the price of fuel, and with that, to ease an expected January increase in electricity prices.

The Mibgas, which started operating in 2016, reached a negotiated volume of 6,566 gigawatt hours (GWh) during its first year of life, barely 2% of the total gas demand in Spain, levels much lower than those negotiated in others markets.

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