PARIS (S&P Global Ratings) July 9, 2019--The remuneration reform recently proposed by Spain's National Authority for Markets and Competition (CNMC) cuts deeper than expected, possibly eroding the rating headroom of Spanish gas distribution and transmission companies, according to S&P Global Ratings. While the CNMC's initial proposal for lower allowed returns for the regulatory period 2020-2025 is in line with the Spanish Ministry of Environment's December 2018 expectations for the electricity sector, the draft regulation could leave a major dent in the revenues of Spain's gas companies. For the gas sector, over the regulatory period 2021-2026, the CNMC proposed a 17.8% revenue drop on average for gas distribution and a 21.8% revenue drop on average for gas transmission and regasification, according
