The CNMC recommends several measures for Enagás to reinforce the functional separation of its activities

Enagás affirms that it is applying these recommendations of the CNMC de facto

MADRID, 13 Oct. (EUROPA PRESS) -

The National Commission of Markets and Competition (CNMC) has recommended several measures, related to the independence, protection of information or the composition of the administrative bodies of the Enagás Group, so that it reinforces the functional separation of the technical manager from the gas system with respect to the rest of the companies in the group, and avoid possible conflicts of interest, as required by the Hydrocarbons Law for groups that carry out incompatible activities.

However, sources from the energy group told Europa Press that the company is already applying these CNMC recommendations de facto.

In Spain, Enagás carries out the regulated activities of the gas system that affect its technical management (Enagás GTS) and transport (Enagás Transporte), without carrying out liberalized production and supply activities. In any case, in 2021 and 2022, two projects linked to the production of renewable gases in which it participates have been launched.

Other carriers operate in the gas sector, so there is, according to the CNMC, the risk of conflicts of interest arising from Enagás GTS decisions and which are likely to favor the group's carrier (Enagás Transporte), to the detriment of third parties.

In this sense, Enagás GTS is obliged to sign a code of conduct with the measures to comply with the obligation of functional separation of activities and guarantee its independence with respect to the rest of the business group's activities.

The CNMC considers that the functional separation requirement will affect any other energy activity within the group that, due to its nature, may imply a risk to the independence of the GTS.

In its supervision report, the CNMC concludes that, in general, the measures adopted comply with the requirements set forth in the regulations.

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In any case, it makes some considerations, including the independence of the people responsible for managing the subsidiary as GTS.

In this sense, the Commission detected that Enagás GTS and Enagás Transporte shared the same sole administrator (parent company of the group). After the requirement to avoid the risk of conflict of interest and guarantee the independence of the GTS, changes were made in the administrative body of each company.

The CNMC recommends respecting the obligation of functional separation in the development of the management of the Guarantee of Origin System for renewable gases and their production, and in the analysis and development of infrastructures related to renewable hydrogen within the group.

Likewise, regarding the independence of the people responsible for the GTS by protecting their professional interests, the CNMC detected the payment of a variable remuneration (in shares of the parent company) to the manager of the GTS, and that it represented a potential risk for the decision-making with independence and autonomy.

The CNMC requires that the quantification of variable remuneration and its form of payment are not linked to parameters that imply incompatibilities. Enagás confirmed the CNMC recommendations associated with the group's Code of Conduct.

Regarding the obligation not to share commercially sensitive information, the CNMC considers the measures adopted to be favorable, as well as the provisions in the group's Code of Ethics, being complemented by the sectoral regulations and operating procedures.

Likewise, it recommends reinforcing the maximum physical separation between the employees of Enagás GTS and Enagás Transporte, to minimize risks, and implement precautions to access commercially sensitive information if there is an intra-group transfer of GTS employees, such as the signing of a commitment to confidentiality, as Enagás proposes.

Regarding the effective decision-making capacity of the GTS independent of the group, with the group maintaining the right to economic and management supervision, the conclusion is favorable on general aspects, but the CNMC makes recommendations regarding the provision of common intra-group services, specifically, the implementation of measures aimed at ensuring that the technical management of the system and, mainly, transport, do not share strategic services (legal, regulation and control).

Regarding the supervision of compliance with the separation of activities code by the designated compliance officer, a favorable conclusion is reached regarding the measures adopted and the independence of the compliance officer.

The CNMC recommends, finally, the monitoring of incidents and their publication in the corresponding reports; Assess that the person responsible for compliance is a third party independent of the group with legal training to increase the guarantee of independence, or include in the code of conduct that the person responsible for compliance can participate in the meetings he deems appropriate to perform his duties.