Understand your invoice

Producer invoice

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1 Remuneration schemes

In accordance with prevailing legislation, a facility is catalogued with an IT. Depending on the IT, Remuneration for Investment (Rinv) and Remuneration for Operation (Ro) payments will be received.

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2 Time Limit

No. of operating hours: number of equivalent hours of the facility. In the case of the example, it is an equivalent hour when the facility has produced 100 kWh, as its nominal power is 100 kW.

Operation threshold: minimum number of equivalent hours to receive remuneration payment.

D ratio: The ratio which, based on the operating hours, determines the sum of the specific remuneration payments to be made*

d<1 d = (Nhinst – Uf)/(Nhmin – Uf)

This formula is that applied in December. For the rest of the year, quarterly reviews are carried out. If this is not complied with, until the next review there will be a d ratio lower than 1 or oven zero, and the part of the specific remuneration received in excess must be returned.
Where:
Nhinst: number of operating hours of the facility
Uf: threshold of operating hours per year
Nhmin: minimum number of operating hours per year.

Minimum no. of hours: Equivalent hours that plants must have to receive 100% of the remuneration payment d=1.

Maximum no. of hours: when these equivalent hours are exceeded, the facility will cease to receive Ro and shall only receive Ri and Rm.

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3 CNMC Settlement

Active Energy in KWh: The energy produced in the period of time indicated

Limited energy kWh: Volume of energy from this month’s total production that is entitled to Ro.

E/R: Real or estimated reading.

Rinv: Remuneration for investment. Fixed sum received every month, regardless of production = Nominal power * Rinv value.

Ro: Remuneration for operation. Variable sum based on production each month = Limited energy * Ro value.

Specific R: Rinv + Ro.

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4 Market Remuneration

PMP weighted average price of energy produced/sold on the market.

Total Market received for energy produced/sold on the market during this month = Active Energy * PMP.

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5 Months

M: Month of production of this invoice.

M-4: Settlement from four months ago.

M-11: Settlement from eleven months ago.

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6 Total Remuneration

Coverage ratio: Percentages that indicates the difference between the income and expenditure of the system. It is calculated by the government every month.

Specific R. 2019 (with no ratio): Sum of R Specific x d in M + difference M-4 + Difference M-11. This is what the CNMC would pay you this month if there was no Coverage Ratio.

Total specific R. 2019 (with ratio): Monthly payment CNMC with Coverage Ratio applied.

Total specific R.: Total remuneration CNMC AAAA (with ratio).

TOTAL MARKET REMUNERATION: Total market remuneration (M) + difference M-4 + difference M-11.

TAX BASE: Total CNMC settlement + TOTAL MARKET REMUNERATION.

TOTAL INVOICE: TAX BASE + VAT.

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7 Settlements current year

Where does the TOTAL CNMC SETTLEMENT OF de €2,695.68 come from?

TOTAL CNMC SETTLEMENT (G)
Calculated based on the following Formula (G) = (F x E) – (D – C + A) where:
(F) is the total of the sum of remunerations which should have been received up to this point, if the ratio did not exist. In our example € 74,545.12
(E) is the coverage ratio applied each month. In our example, for the November settlement 83.3577592521 %
(D) Sum of the payments already made in previous months (January, February, March…October) in our example: January € 0.00 + February € 1,763.04 …= € 57,614.47
(C) Accumulated charges. € 0.
(A) Charges plus net amounts made in M-1 settlement. In our example it is zero for this month.

(G) = (F x E) – (D – C + A)=(€ 74,545.12 x 83.3577592521 %) – (€ 57,614.47 – € 0 + 0 ) = € 4,524.67

In the example, the producer should have received a remuneration of € 38,916.32, but taking into account that the government is applying the coverage ratio, the producer has really received € 74,545.12 (January € 0.00 + February € 1,763.04…); the remaining amount shall be settled in the following months as the coverage ratio increases and payment shall be completed when it reaches 100%.

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8 Notice

Current legislation and regulations and market price information


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