Oil report

Spanish watchdog proposes 10% cut to gas transport returns

MADRID, Nov 6 (Reuters) - Spanish competition watchdog CNMC on Wednesday approved halving its planned cuts to regulated remuneration of gas transport networks following complaints from companies in the sector.

Spain regulates income from the transport and distribution of gas and electricity by fixing the rate of return that power companies can make on their investments.

The CNMC will leave the final adjustment at around 10% compared to the 21.8% announced in July.

The CNMC notice will now be referred to the State Council and is still open for modifications. It is expected to be carried out during the 2021-2026 regulatory period.

In total, the remuneration for the next 6 years will be 5.92 billion euros.

According to the CNMC watchdog, it will affect mainly Enagas which carries out the majority of transport of natural gas in Spain. (Reporting by Andres Gonzalez and Jessica Jones; Writing by Jessica Jones; Editing by Chris Reese)