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Spain's tariff deficit: the €28 billion gap in power market finances

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Report summary

Between 2000 and 2012, the Spanish power market accumulated a 28 billion shortfall between market costs and the revenue raised from end-users. This shortfall has become known as the 'tariff deficit'. In response, the country's government has overhauled retail power tariffs and, most notably, imposed a moratorium on any further award of renewable incentives. Once a global leader in attracting investment in wind and solar, Spain is currently the only major power market in Europe without a,

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    Spain's tariff deficit: the €28 billion gap in power market finances

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Table of contents

    • Background
    • The Tariff Deficit
    • Attempts to Tackle the Tariff Deficit
    • The Challenges of Further Reform
  • Conclusions

Tables and charts

This report includes 4 images and tables including:

Images

  • Chart 1: Tariff Deficit Growth
  • Chart 2: The 2011 Tariff Deficit
  • Chart 3: Total Tariff Deficit by Company, % (2010)
  • Chart 4: FADE Securitisation

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