Understand your invoice

Producer invoice

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1 Remuneration Criteria 2014-2016

In accordance with Royal Decree 413/2014, 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 hours operational: number of equivalent hours of the facility. In the case of the example, it is the equivalent hours when the facility produces 100kWh, as its nominal power is 100kW

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

d Coefficient: The coefficient which, based on the operational hours determines the sum of the specific remuneration payments to be made*.

d<1 d = (Nhinst – Uf)/(Nhmin – Uf)

The formula which appears here is that applied in December. For the rest of the year, quarterly reviews are carried out. If it does not comply, until the next review, there will be a d of below 1 or oven zero, with the obligation to return the corresponding part of the specific remuneration payment received in excess.
Where:
Nhinst: number of hours in operation of the facility
Uf: threshold of operational hours in one year
Nhmin: minimum number of hours in operation annually

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

Maximum no. hours: when these equivalent hours are exceeded, the facility will cease to receive Ro, receiving only 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:
The sum of the total production this month qualifying for Ro.

E/R:
Real or estimated reading

Rinv:
Remuneration for investment. Fixed sum received every month, regardless of production. Depends on nominal power.

Ro:
Remuneration for operation. Variable sum based on production each month.

R Specific:
Rinv + Ro

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4 Remuneration for Market

PMP weighted average price of energy produced sold on the market

R. Total Market received for energy produced sold on the market that same month = Active Energy * PMP

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5 Months

M: Month of production of this invoice

M-3: Settlement of two month previous

This line refers to what was billed in the invoice for oct15 (M)

M-3 of oct15: As in oct 15 the reading was real this 2nd line coincides with the 1st. If the reading had been estimated, the data would be different and there would be a settlement. Difference M-3.

M-11: Settlement of 10 month previous
This line refers to what was billed in the invoice for feb15

M-3 of feb15: This line refers to the M-3 settlement of feb15, just as in M-3 if the readings are real and coincide with the sums, otherwise there would be a different reading.

M-11 of feb15: In the case where in M of feb15 or M-3 of feb15 the reading has been estimated, there would be a third M-11 payment to regularise the situation. Difference M-11.

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6 Total Remuneration

REMUNERATION CNMC 2015 (no coefficient) : Sum of R Specific x d in M + difference M-3 + Difference M-11. This is what the CNMC would pay this month if there were no Coverage Coefficient.

Total Remuneration CNMC 2015 (with coefficient) See following page of invoice.

Coverage coefficient: Coefficient that indicated the difference between the income and expenditure of the system. It is calculated by the government every month.

TOTAL CNMC SETTLEMENT
total remuneration CNMC 2015 (with coefficient)

TOTAL MARKET REMUNERATION
total MARKET remuneration (M) + difference M-3 + Difference M-11.

TAXABLE BASE
total CNMC settlement + TOTAL MARKET REMUNERATION

INVOICE TOTAL
TAXABLE BASE + VAT

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7 Total of CNMC settlement

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 ought to be received up to this point, if there is no coefficient. In our example €38,916.23
(E) is the coverage coefficient applied each month. In our example, for the November settlement 93.4548630027 %
(D) Sum of the payments already made in previous months (January, February, March…October) in our example: January €921.16 + February €2.866.07 …= €33,673,42
(C) Accumulated payments. €0.
(A) Additional payments made in M-1 settlement. In our example it is zero for this month.

(G) = (F x E) – (D – C + A) = (€38,916.23 x 93.4548630027 %) – (€36,369.12 – €33,673.42 + 0) = €2,695.68

In the example, the producer would have to have received a remuneration of €38,916.32 but taking into account that the government is applying the coverage coefficient, the producer has really received €33,673.42 (January €921.16 + February €2,866.07…), the remainder will be settled over the following months in accordance with the increase of the coverage coefficient and the payment will be complete when this reaches 100%


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