Spain cuts 2014 disbursements to power distributors

MADRID Mon Feb 3, 2014 7:47am EST

MADRID Feb 3 (Reuters) - The Spanish government will disburse 4.57 billion euros ($6.2 billion) in regulated revenues for electricity distributors in 2014, down 10 percent from a year ago and below expectations.

In the state bulletin published on Saturday, the government outlined the payment for the three main power distributors as follows: Endesa would receive 1.98 billion euros, Iberdrola 1.57 billion euros and Gas Natural 723 million euros.

Banco Sabadell said in a note to clients that the total was 6.6 percent below the amount expected by the market and was negative for the distributors.

Regulated distribution revenues account for 25 percent of earnings before interest, taxes, depreciation and amortisation (EBITDA) for Endesa, 18 percent for Iberdrola and 12 percent for Gas Natural, it said.

The funds come out of power bills paid by consumers, which are divided into regulated and non-regulated items.

Spain also set the regulated rates for transportation at 1.66 billion euros, with the vast majority going to national electricity grid operator Red Electrica, in line with the amount flagged by the company last month. ($1 = 0.7415 euros) (Reporting by Tracy Rucinski; Editing by Fiona Ortiz and Anthony Barker)

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