Good morning, ladies and gentlemen, and welcome to the 2022 results presentation, which will be hosted by our CEO, José Bogas, and our recently appointed CFO, Marco Palermo. Following the presentation, we will have the usual Q&A session open to those connected on the call and on the web. Thank you. Now, let me hand over to José Bogas.
Okay. Thank you, Mar, good morning, everybody. Let's start with some key consideration for the period. 2022 was marked by an unprecedented energy crisis after the Russian attack on Ukraine, one year ago, whose implication have far exceeded the European scope. The persistency and depth of the imbalance caused in the gas market and, consequently, the high electricity prices led the European Union to develop a set work of coordinated emergency measures for all the member state in order to mitigate its consequences. In parallel, the overall deterioration of the worldwide macro context has been a source of major concern which drove downward reviews on the main economic performance estimated.
Again, against this complex backdrop, the sound performance of our integrated mark strategy, coupled with a firm commitment to decarbonization being the only long-term solution, is clear evidence of our resiliency to overcome market headwinds. Net ordinary income exceeded the top range of the updated guidance provided back in our November 2022 Capital Markets Day, which allows us to propose the distribution of a gross dividend of EUR 1.585 per share, 6% higher than our last estimate for approval at the next general shareholder meeting. Moving to the next slide. Before diving more deeply into the details and performance of the period, let me comment on the target delivery. As previously noted, we greatly exceeded our business plan target for EBITDA and net ordinary income.
EBITDA, like for like, reached EUR 5.3 billion, increasing by 29% versus the initial target set in Capital Markets Day 2021. While net ordinary income rose by 33% versus the same reference, reaching EUR 2.4 billion, becoming around EUR 1.6 per share of gross DPS. On generation, we have further strengthened our position in renewables, adding more than 900 MW of new capacity, attaining a total of 9.3 GW at year-end. Let me also highlight the good evolution of the power-free business, where our competitive commercial strategy has allowed us to increase our customer base, reaching close to 7 million customer. That is a 0.9 million improvement year-on-year.
Investment in grid were in line with last year, implying a final regulatory asset base of EUR 11.5 billion. We invested more than EUR 2.3 billion in the period, an increase of 8% versus last year and representing the largest amount ever. Out of this total, 76% is aligned to the European Union Taxonomy criteria due to the substantial contribution to climate change mitigation. On slide number four, we detail the main dynamic of the market context, shaping the basis of 2022 results. Full year accumulated mainland demand fell by 2.9% compared to the previous year.
After a certain recovery in the negative trend since by mid-year, and especially in the fourth quarter, saw a drop in demand due to the combined effect of record high prices, energy-saving measures, and abnormally mild winter. This as mainland demand decreased to a lesser extent by 1.1%, despite the solid performance of service segment increasing by 4.6%, and mainly hampered by reduction in residential consumption due to the already aforementioned saving measures and the economic recession driving industrial demand down. Gas market swings have, beyond any doubt, being the main factor behind the European energy crisis in 2022, which peaked during the summer with historically high gas prices. Since then, European gas references have come down sharply to level close to September 2021.
The main reason of this partial normalization are warmer than expected fourth quarter and high renewable contribution, coupled with high levels of winter gas storage, in turn increasing the availability of additional cheap gas. Against this background, Iberian average pool price reached an average of EUR 168 per MWh, 50% up year-on-year. The implementation of the cap on gas for electricity prices since June also contributed to this abatement, allowing a very favorable comparison with most European energy market. In any case, 2022 remains at the most expensive year in the Spanish electricity market. Last year was very likely the most prolific in terms of far-reaching regulatory development and initiative. On slide number five, we summarized the main outcomes both at European and Spanish level.
The European Commission has continued to implement a series of temporary e-emergency measures to intervene in the energy market. In Spain, the government approved along the year a number of Royal Decree-Laws shaping an extreme array of measures, mainly aimed at offsetting high energy prices and protecting vulnerable customer. The last of them finally enforced last January the 1st, 2023, being the 1.2% extraordinary levy on liberalized revenues. Regarding the legal action, as we consider this levy to be discriminatory and unjustified, we have just filed an appeal before the Audiencia Nacional against it. It should also be taken into account that Endesa is among the top five taxpayer in the Spain, and its total tax contribution increased by 28% compared to fiscal year 2021.
Among the several initiatives also in discussion, back in September, the president of the European Union Commission promised a broad and deep reform on the electricity market to decouple the influence of gas on the price of electricity, given the severe price and volatility over the past year. Regardless of the final approach of the European Commission and the Spanish government, the main priority of any future reform of the wholesale market design should be to guarantee security of supply, affordable energy for customers, and the right price signals to ensure the required investment in renewables and grids. Focusing on the progress we made in renewables on slide six.
Despite last year being marked by tough constraint in the sector logistic chain, we made sound achievement in our decarbonization commitments, bringing into operation more than 900 MW of renewables. Additionally, we have 100 MW already built and pending to start operation in the coming months. Mainland renewable capacity is now 11% higher than in 2021, while CO₂-free sources now constitute 71% of our installed capacity. We are in the process of closing down As Pontes, the last mainland coal plant, in which group one and two are currently functioning alternatively, pending the final closure authorization. Total mainland output reached 52.4 terawatt-hour, 13% higher than previous year, 73 of which came from CO₂ non-emitting sources. Year-to-date output figure consolidates the lower hydro availability suffered mainly in the first semester.
In that context, the increasing wind and solar production due to the entry of new capacity, together with the recovery of thermal output, mainly CCGTs and nuclear, more than offset the drop of hydro production. In the next slide, as of December, the renewable pipeline, and I am on slide number seven, the renewable pipeline reached 90 GW supporting our growth ambitions to accelerate renewable deployment. Mature pipeline is now worth around 18 GW, out of which 8 GW are TSO-awarded connection points. We promote the gradual incorporation of energy storage technologies in our project as it is becoming increasingly evident that they are a very important instrument to provide short-term storage and flexibility services, thus reducing the unpredictability in the system and improving the efficiency of the energy mix.
Mature and in execution project with a COD, that is a COD or Commercial Operation Date, 2023-2025, are able to cover by 2x our capacity deployment for 2025, with around 30% of target additions already addressed. It is worth mentioning that we have met the January 25th ministry deadline to obtain the necessary Environmental Impact Declaration permit without any meaningful impact on our projects. In power retail, we continue increasing the liberalized customer base, liberating on our successful commercial strategy. We are on slide number eight. The particular price context seen last year increased the appeal of our commercial offers, preventing rising volatility, particularly compared to index client's bill.
This resulted in a remarkable increase in our liberalized customer base during the last 12 months, where we added around 0.9 million new clients. Therefore, liberalized sales grew by 4% versus previous year. By segments, sales to liberalized residential customer have more than offset the decrease in sales to B2B. Remarkable operative performance also at Endesa X level, where home contract and charging points grew by 18%, 47% respectively. Our electric mobility branch, Endesa X Way, maintains a solid leadership position in Iberia, achieving the largest network of public and private recharging points.
On slide number nine, as you can see in the first graph, free sales included without integrated margin amounted to 76 TWh, plus 4% with a strong growth in index sales, while fixed price volumes decreased by 8% to 51 TWh It should be noted that our infra-marginal output reached 39 TWh, insufficient to cover fixed price demand. The good evolution of our free power sales came together with a sound performance of the free power margin that reached EUR 42 per MWh 31% above previous year, despite the complex and challenging market and price scenario. This mainly resulted from the strong increase in CCGTs output, attained an important margin improvement.
The renewable regulated output sold to a spot market and the supply margin that is below EUR 8 per MWh compared to the around EUR 10 per MWh achieved last year as a result of the higher ancillary services cost. Regarding forward sales, 98% of our 2023 infra-marginal output and 85% for 2024 has already been hedged at the EUR 65 per MWh baseload price reference set in the bilateral contract between our generation and supply subsidiary. A focus on the gas business, we are on slide number 10. Total gas sales slightly decreased by 3% due to a demand contraction resulting from the economic slowdown, high gas prices, and consumption reduction measure, which was partially offset by very strong sales to our CCGTs.
Gas unity margin including wholesale, retail, and CCGTs activity recover from the previous year's abnormally low level to around EUR 6 per MWh in 2022. The positive evolution of the wholesale business, especially in the second half, due to the opportunities arising from lower retail demand that we were able to sell in the wholesale market. In to the contrary, retail business margin decreased, mainly driven by the already referred to lower than expected gas demand, especially from industrial customer affected by the high price context. Volume hedge of our sourcing contract came to 70% and 32% for 2023 and 2024 respectively. Moving to operative achievement on networks, and I'm now on slide number 11, distributed energy stood at 132 TWh, up by 1%.
Our effort to improve quality and efficiency resulted in losses in line with last year, while time of interruption was cut by a sound 11%, despite suffering some extreme weather conditions during the year. Regulated asset base decreased by 2% as new investment during 2022 were not enough to compensate for the regulated amortization. In this end, we must draw attention to the need of ensuring a stable regulatory framework allowing for the high capital deployment required for the net zero transformation. Now I will hand over to Marco, who will detail the financial results.
Thank you, Peppe. Good morning to everybody. On the economics results on slide 13, reported EBITDA increased by 30%, while EBITDA like-for-like rises by 25%, excluding the capital gain obtained from the Endesa X Way transaction. Net ordinary income was up by 26% year-on-year, amounting to EUR 2.4 billion, not considering the net effect of Endesa X Way transaction, not considering the impairment booked in both years and other minor impacts. Reported funds from operation amounted to EUR 1.7 billion. This figure was strongly affected by the increase in the regulatory working capital during the period by EUR 1.5 billion. Once we strip out from this impact both years, the FFO would have reached EUR 3.2 billion, 26% higher than the adjusted FFO in 2021.
Moving to the detailed analysis of the period on slide 14, we invested approximately EUR 2.3 billion. It's an 8% more than in previous year, focused on decarbonization and networks, being 76% of these investments aligned to taxonomy. When it comes to EBITDA like for like, it reached EUR 5.327 billion. It's 25% vis-à-vis full year 2021. The main drivers are basically generation and supply EBITDA that showed an improvement of 57%, mainly thanks to the outstanding performance of the gas business, both from the high CCGT contribution and the gas wholesale business. This was partially compensated by non-recurrence impacting renewables and by lower supply results. Distribution EBITDA declined by 13% to EUR 1.703 billion.
Within the non-recurrent effects, in addition to those recorded in the nine month of 2022, we have booked EUR 113 million related to regulated renewable plants. We are now on chart 15. Despite the strong volatility, our liberalized business portfolio strategy has successfully overcome market headwinds. EBITDA like for like lands at around EUR 3.6 billion, increasing more than EUR 1.5 billion, excluding the net effect of non-recurrence. If we go to free power, contributed positively with EUR 841 million, mainly thanks to, first, the generation margin expansion, mainly due to higher thermal margin, increasing by half a billion, mostly due to higher CCGTs activity and the increase in revenues from renewable regulated output sold to spot market. This for about EUR 200 million.
Second, the deterioration of supply margin that has dropped by EUR 130 million, mainly affected by higher ancillary services and shape cost, resulting in a unitary margin well below previous year reference, as commented before. Third, finally, a positive contribution from short position management in line to previous years. If you go to the building block of Endesa X margin, there was a positive evolution with EUR 27 million. The last green building block, that is others, there were positive effects of EUR 780 million, including improvement in gas business by around EUR 480 million, supported by the positive evolution of wholesale activity, as mentioned before, and around EUR 300 million, mainly from trading. Non-mainland margin improved around EUR 60 million, mainly thanks to previous years' resettlements.
Finally, fixed cost evolution was negatively impacted by the inflationary context and the higher activity. On slide 16, distribution EBITDA dropped by 13% to EUR 1.7 billion, mainly affected by lower gross margin, impacted by the update of the regulatory remuneration for 2017-2019 in accordance with the Ministerial Order issued last August by around EUR 180 million. Minus EUR 40 million due to previous year resettlements and others. Finally, fixed cost increase affected by CPI and maintenance cost. On the P&L evolution from EBITDA to net ordinary income, we go on slide 17.
Net ordinary income came in close to EUR 2.4 billion, up by 26% year-on-year on the back of the dynamics commented at the EBITDA level. D&A is down by EUR 444 million year-on-year, explained by + EUR 587 million of variation in impairments, - EUR 106 million of higher amortization based on investment increase as well as activated customers acquisition cost. The bad debt slightly increased, representing now 0.46% of total revenues. That is below historical trend. Net financial charges increased mainly as a result of late interest payments net effect for - EUR 100 million and a higher debt financing cost due to the increase on the average gross debt despite the lower cost.
This was partially offset by the positive update of workforce reduction plans provisions. Rise in income taxes by around EUR 400 million, mainly driven by better economic results and increase of the effective tax rate to 25.6%. Minorities increased by EUR 33 million. Moving to the cash flow on chart 18, the FFO evolution came in, EUR 1.7 billion positive, below the cash generated last year. Net working capital was equal to minus EUR 2.9 billion, strongly affected by the EUR 1.5 billion of the regulatory working capital increase, most of it in the non-mainland business due to regulatory settlements at historical fuel cost far below current market.
Apart from this effect, negative working capital amounts to minus EUR 1.3 billion, mainly as a consequence of the logical evolution of the business dynamics in a context of higher prices, which has led to an increase in the volume of net balance of receivable. FFO would have amounted to EUR 3.2 billion. That is a 26% increase net of the regulatory working capital effect, which we hope should normalize over 2023. I will now move on the debt evolution that is in chart number 19. Actual net debt stood at EUR 10.9 billion, increasing by EUR 2.1 billion versus previous year. The main operating moving parts described in the chart are the following.
There is a positive FFO for EUR 1.7 billion, as already commented, EUR 2.4 billion of cash-based Capex, and EUR 1.5 billion of dividends paid corresponding to 2021 results. As mentioned before, regulatory working capital stand at EUR 2.3 billion, almost tripling 2021 figure driven by non-mainland pending compensation. Despite the recent rise in progression in interest rates, the cost of our debt remained at still very competitive level, even lower than in 2021, reaching 1.4%. Gross debt increased as a consequence of the already mentioned dynamics on the net debt being additionally expanded by the rise of financial guarantees required for the commodity financial hedging contracts. Let me remind you that these derivative contracts are used to hedge margins for our native portfolio in both power and gas that are clearly not speculative.
Moreover, collateral requirements are temporary. In fact, since September, the figure has notably dropped, reaching EUR 6.7 billion due to the gradual decline in commodity prices after the third quarter peak. To date, the amount of collaterals is even lower. Regarding the credit metrics, I'm now on chart 20, we have put in place a number of financial initiatives to strengthen the liquidity position, reaching levels we find sufficiently comfortable both in the short and in the medium term. Current liquidity position amounts to EUR 9.2 billion, with maturities averaging 3.2 years and the fixed rate gross debt represent 58% once excluding the collaterals.
Despite the net debt increase by EUR 2.1 billion along the period, the leverage measured as net debt/EBITDA ratio slightly decreased to 2x from the 2.1x in 2021, at healthy levels and well below the industry average. Adjusted FFO to net debt ratio increased by 1 percentage point, reaching 30%. It comes to the details of the sustainable finance on slide 21, throughout the year, we closed sustainability-linked financial transaction for an aggregate amount close to EUR 14 billion. The most remarkable transaction in the increase is the increase in the limit of our SDG 7 Euro Commercial Paper Programme that went from EUR 4 billion to EUR 5 billion. Additionally, a 2024 goal has been set for the greenhouse gas emission KPI related to the reduction of Scope 1 Emissions in some of our financial transactions.
We have also issued an innovative circular confirming credit line linking invoice discounts to suppliers' sustainable performance. As a result, sustainable finance now represents 64% of our gross debt, above the initial 2023 target and gradually approaching our 87% target in 2025. Let me now hand over to Pepe for the final conclusions.
Okay, thank you, Marco. Our achievement generated significant value creation for our shareholders. Considering a 70% payout of net ordinary income in 2022, the board of director has proposed, subject to general shareholders' meeting approval, a total gross DPS payment of EUR 1.585 per share. This dividend is expected to be paid in July 2023 in a single payment. This dividend is significantly above the initial guidance committed to in the business plan 2022-2024 and represent an increase of 10% versus previous year. Progress in our operation is reflected in our target for the period, and I am on slide number 25.
As shown throughout this presentation, we can be proud of succeeding once again in beating the target we set for 2022, taking into account the challenging market conditions marked by record high commodity and electricity prices. After this set of result, which had been absolutely extraordinary, we expect to recover the growth path with 8% EBITDA and 80% net ordinary income, CAGR by 2025. For the year 2023, we maintain the target range announcing the Capital Markets Day, assuming a return to the growth path from a more normalized year, such as 2021, considering the extraordinary market circumstances we have faced in 2022.
More specifically, we foresee an EBITDA of EUR 4.4 billion-EUR 4.7 billion, a 5% rise versus 2021 or 10% if the impact of the 1.2% levy in 2023 is removed. This levy implies an additional tax burden of more than 15% of the net ordinary income. Lastly, in terms of gross CapEx, it must be taken into account that Endesa plays a fundamental role in society by guaranteeing security of supply, which is why we will continue to invest close to EUR 9 billion in Spain over the next three years, both for decarbonization and to improve the competitive offer to our customers. Now, some closing remarks before the Q&A.
The resiliency of our long-proven integrated business model has allowed us to successfully overcome one of the most challenging contexts in recent years, both in terms of market volatility and regulatory intervention. We continue to retain and attract new customer, leveraging on a successful commercial strategy based on a range of products and services that protect them from price spikes. We invested EUR 2.3 billion, an historically high amount, 8% more than the previous year, having announced for 2023 a further 20% increase, a clear demonstration of our commitment to energy transition process in order to foster energy independence and lower electricity prices. Finally, we would like to highlight the visible improvement in shareholder remuneration, with a 10% increase in DPS compared to the previous year and an outstanding dividend yield of around 9%.
This concludes our full year 2022 results presentation, and I think we can now open the Q&A session.
Many thanks, Pepe and Marco. We are now open to answer any question you may have.
The telephone Q&A session starts now. If you wish to ask a question, please press star five on your telephone keypad. If you change your mind, please press star five again on your telephone keypad. Please ensure your phone is not muted.
Okay. First question comes from Alberto Gandolfi from Goldman Sachs. Please, Alberto, go ahead.
Thank you, Mar, good morning, everyone, and welcome, Marco. I have three, please, if you don't mind. The first two are a little bit bigger picture industry, and the third one is specific on your numbers. The first one is, can you tell us what are you seeing regarding a response to the U.S. IRA in Europe? You know, what I would call the Europe IRA. We are seeing Germany proceeding at very high pace, high speed with legislation on production tax credits supporting incremental renewables. Spain has sped up the approval, at least environmental approval of permits. What are you seeing in Spain, and how could this legislation on a one to three year basis be helpful to you and to your business?
The second is we are beginning to see a bit of a split in Europe when it comes to a power market reform amongst countries like Spain that are suggesting essentially to bilateralize the, almost the entire you know, merit order, almost, and other regions like Germany, for instance, that are suggesting to maintain a merit order, to maintain an hourly, competitive merchant market. What do you think is going to happen on power market reform? Are we going to have a standstill situation with no actually outcome? Do you think countries will have the ability to flex a little bit, so every country will have a slightly different approach? Are we gonna stick with the marginal pricing system, with the current price caps, maybe for the foreseeable future?
The point number three is, t he question number three is on supply. If I am not mistaken, in Q4, you delivered EUR 340 million of supply clients retail EBITDA. Can I ask you if this is correct, and how much would this be recurring? I don't know how much gas wholesale maybe. I wouldn't call it one-off, but how much of this comes from gas wholesale maybe does a repeat? By contrast, is this the proper run rate we should now be thinking for 2023? You're gonna deliver more than EUR 300 million, EUR 350 million, whatever in Q1 this year. Thank you so much.
Thank you, Alberto, I will try, yes, to answer the two first question, then I will give the third to Marco. With regard of the so-called European era, I should say that Europe needs for sure a mix of renewables and low carbon energy sources to ensure on the one hand, energy independence, and on the other hand, the low electricity prices. Robust European response to ensure the best framework conditions should be done to encourage renewable energy and avoid the gap between Europe and the United States in terms of competitiveness.
That is something them that is based on the competitiveness on the different and the attractiveness of the different regions, Europe versus Europe versus the United States. If I'm right, the European Union will discuss this plan along the first quarter, so details so far are limited. I'm sure that plan the plan intends easing restriction on tax credit and boosting a state aid. This is something that we need to do because we are, we are living in a global world in which we should take care about how we could go ahead with our plan of decarbonization without with the same tools of other regions, I would say.
We really celebrate this initiative, and we will be expecting the result of that. With regard to the second question, that is the structural reform of the European market, I should say that this structural reform was needed before this energy crisis. The energy transition and the current energy scenario require a new market design. As I have said, this new market design is something that we need previous to the energy crisis. The outcome of the reform is uncertain. Let me say that it is a very complex subject.
Within that this reform should be based on common sense that is supporting and encouraging the commitment of the main unions with a strong public-private collaboration, and should be aligned for sure with the objective of decarbonization. But it is a very complex subject. Complex subject because in my opinion, we should maintain the marginal pricing that we have today, at least in the short term, and also in the long term. But we need, yes, to increase the long-term contraction that we don't have. But it's not only a question of the European Commission, it is also a question of the member state, in which there are many restriction for these long-term contract.
Indeed, these restriction in the long-term contract should be removed, in my opinion, for the small customer. Things that are not allowed in many countries today, you know that you should be obliged to renewal the contract with the small customer each year. Well, there are many things. On the other hand, how to really extend and increase the PPAs contract. It's how to perform with the so-called contract for difference. In any case, we think that this should be done in a voluntary measures, trying to reduce as much as possible the intervention of the market, having an open a free market.
You're right, there are many different position between different countries or member state. What I also ask is just to try to prevent fragmentation of the market. The worst thing would be that the European Union decided just to give a general guidelines, and then the countries will go deeply in different rules. I think that would be a strong mistake. The European Commission and the different countries should try to work to get an common agreement for the market in the future. Now, Marco, do you want?
Thank you, Pepe, and ciao, Alberto. Basically, thank you for the question. You're right, Alberto. We have been along the 2022, if you look at the supply, of course, we have been suffering a bit during the first couple of quarters. In the summer, we started to somehow increase also price and translate the increase in also to our customers. Therefore, that's why the figure that you see in the fourth quarter, it's probably a good proxy of what we're seeing in 2023.
Something in the range of EUR 300 million, it's something that you should probably expect for the rest of the quarters, at least what we are planning right now for 2023.
Okay, thank you. Next question comes from José Ruiz from Barclays.
Good morning, everyone, and thanks for taking my questions. I have two. The first one is regarding slide seven. I would like to confirm that I understand what you're saying there. Are you implying an installation rate of renewables for the period 2023-2025 of 3.3 gigas per year? I'm just dividing 10 gigas divided by three years. Secondly, you have beaten the 2022 guidance you gave in the Capital Markets Day. I was wondering, I know it's a little bit early, but if there is any possibility of also beating the 2023 earnings guidance. Thank you very much.
Okay, thank you, José Ruiz. First of all, our commitment on our forecast for the deployment of renewable during the period 2023 to 2025 is 4.4 GW. That is the right figure. With regard to the second question, talking about the guidance, well, as you have said, it is a little bit early. We maintain the guidance communicated in the last Capital Market Day, assuming the normalization of the market from the extraordinary context, gas, that benefited 2022 results, and assuming also the impact of the 1.2% revenues levy. The recover or the return to the growth path from a more normalized year, such as 2021.
For sure, we will be obliged to manage different issues or subject in the business that will arise, for sure, because we are in a very complex and challenging market today. You should take into account that we are thinking that these extraordinary results based on gas and, if you want, the CCGTs performance due to the very high output that we have had with a very good once operation in our CCGTs and also in the gas wholesale context that have given us the possibility to sell gas to this market with extraordinary results. There are many things. It is a little bit early, but we maintain and confirm our guidance.
For sure, we will work just to improve these results.
Okay, many thanks, Jose. We move now to the next analyst, Manuel Palomo from Exane BNP.
Hello. Good morning. Thanks for taking my questions, welcome, Marco. Three questions on my side. Number one is on M&A. I wonder whether you could please update us on the evolution of the potential sale of gas contracts or gas clients that was announced by Enel in last November presentation. That would be the number 1. Second one is on your views about the integrated margins and supply for the next year. We've seen a massive increase in the integrated margin in 2022 to 42 EUR an hour, decrease in the supply margin to below 8 EUR, according to the presentation. I was wondering whether you could give us any, well, any view about what you think we will see by the end of the year 2023.
The last one is a bit on the dividend. The dividend that you're proposing is close to EUR 1.59 per share. If I take the mid-range of the 2023 guidance, and according to the 70% payout ratio, this would mean that by 2023 or in 2023, we would see a significant decline in the dividend, around 50%. I also see that your balance sheet is very healthy, below 2x net attributable. I wonder whether you have any plan to at least partly offset the cliff in the dividend. Thank you very much.
Thank you, Manuel. Marco, could you please answer the question?
Hola, Manuel. Thank you very much. Let's start with the first one. That is the easy one on the M&A. On the M&A side, we didn't even start actually with our dialogues. Reason also being that the market had been very volatile. Now probably what we are seeing is few weeks with less volatility and probably with this environment it could be the good environment just to start talking and understanding whether, you know, there could be a subject interested in dialogue with us. For the time being, we, you know, we are really at the beginning, so there is, you know... We didn't even start, actually.
On question two on the integrated margin and on supply and actually on guidelines 2023, you're right. You know, there's been an increase. You've seen it at page nine in our liberalized power unitary margin. What we see for 2023 is that, you know, we're confident we could maintain this level, even probably improve it a bit. I would say that these also apply actually even more to the supply margin. We have been suffering, as you can see in chart nine, this year. We believe that in 2023, we can go back to something, you know, similar to 2021, probably also there a bit better.
On question number three, yes, you're right. There will be a significant decline, you know, I know that it's difficult, here, if you look at, you know, historical, the trends of the results of this company, what is really somehow strange is the result of 2022. If you take and look at historic results, this, the 2023, we are somehow guiding you now is 2023, there is still an increase when compared to any year like 2021. Of course, it's only a 5% increase, but because you have to take into account the levy on the revenues that we are suffering somehow and that we will suffer this year and next year.
If you neutralize that, would be an increase of 10%. I mean, for the time being, that is, that is our target. Thank you.
Okay. Next question comes from Jorge Guimarães from JB Capital.
Hi. Good morning. Thank you for taking my questions. I would ask you if you can elaborate a bit on the evolution of working capital in Q4 2022, because apparently it deteriorated slightly against the September 2022 figure, and not only for the regulatory working capital, also for normal working capital. If you can elaborate on that, namely in a context where raw material costs have come down. The second one would be if you can give us some light about the evolution of the collaterals or guarantees, the EUR 6.7 billion value that you mentioned in the presentation. You told us that it's going down, but if you can be a little more specific on that?
Those would be the two questions. Thank you very much.
Okay, thank you. Thank you, Jorge. Marco will answer, but let me say, when you talk about the variation from September in the working capital, it is due mainly to the regulatory working capital, and that is due to the recognition of the MIBGAS prices in the gas, like the gas price referent for the island. In terms of the collateral also, what we said is that during the year 2023 and the year 2024, we will see a decrease on these collaterals. On top of that, what we have seen is a reduction in prices. The reduction of the collaterals are higher than the ones that we prevent previously.
In any case, Marco will go deeper in these questions.
Thank you, Pepe, and hola, Jorge. Let's start with the working capital in 2022. Here, I mean, we painted the two blocks because we really believe that it's of paramount importance that you have a look at both. The regulatory working capital, of course, is kind of astonishing. It's a very big number, and it's somehow impacting us. It is something that came clear at the end of last year in December, so I mean, that's why it is there. You know, we hope that this will somehow resolve along the year.
When you go to the remaining, to the rest and to the other building block, to the rest of the working capital, I would say that is a consequence of the logical evolution of the business dynamics. We have higher prices, if you look at our revenues, it's a very important year in terms of revenues. This, of course, with higher prices, leads also to an increase in the volume of net balance of receivable. I mean, somehow this is something that goes with the flow of the business. The more and with some time, you see prices somehow dropping, and the more this will somehow squeeze.
When it comes to collaterals, you know, you remember that in the third quarter last year, they were at a top high. You know, we closed 2022 with this EUR 6.7 billion. You know, the number now, what we were expecting was a decrease in this number of short of half a billion EUR per month. But what we are actually seeing, it's something more than that is somehow leading us today to something close to EUR 4.5 billion, even closer to EUR 4 billion, I would say. Why so? For what I was saying before, actually, what we are experiencing is a lower volatility, and this lower volatility is somehow not only the price, somehow impacting the request of collaterals.
Somehow the situation seems unlocking faster than we thought.
Thank you.
Thank you, Jorge. We have now Robert Pulleyn from Morgan Stanley.
Hey. Thank you. I have one question, just to follow up on this comment around collateral and working capital. Would you be willing to give a direction on net debt by the end of the year, given the comments you just gave around those two big moving parts? Thank you very much.
Marco, you've won.
Thank you, Robert. On guidelines on next year on net debt, I mean, what we are seeing it's, you know, an increase. Why so? There are things that are facts. I mean, we know that there are higher cash taxes. We spoke about this levy. We know that there will be also higher financial payment. There will be higher cash CapEx because of our. You know, you have seen our plan of OpEx for next year. There will be also an increase in the dividend payment because of what we are somehow, you know, communicating to you. All of this is somehow leading to an increase in net debt.
Of course, you know, there is this 1.5 of regulatory working capital that we have to see how this would evolve. I mean, if it is, if there are good news, that would be positive news for us. We have also to see in the different cash components of the EBITDA along the year, depending also on how things evolve. We expect an increase because of some facts, but then we have to see what happened on the regulatory side, on the regulatory working capital.
Sorry. Thank you, Rob. We have now Javier Garrido from JP Morgan.
Thank you, Mar. Good morning, everyone. I think I have just two questions left. First one is.
One point you have not mentioned about the guidance for 2023, which is the management of the short generation position. What are you assuming in your guidance for that? What contribution from this management of the short position are you assuming, and whether you see upside to that assumption or not? The second question be on the islands, while we wait for that working capital normalization, well, actually two things. Firstly, what should be the contribution of the islands in 2023 now that you have got this government ruling that provides the reference to the mid-gas?
Secondly, if you could provide some indication, I know it's difficult, but some indication on when you can see the working capital normalizing, particularly in a context where commodity prices are now lower, whether that could help you also to see a normalization of that regulatory working capital in the islands. Thank you.
Okay. Let me give you some color to this question. Marco will answer. The short position. We have not considered short position in our business plan. We reached something like EUR 200 million in the year 2022. It is true that it's gonna be an opportunity in the future for us because we are a little bit short and prices are going down. That means that perhaps that will give us or we feel comfortable with this short position for the year 2023.
With regard to the island and the working capital, I would say that what we are expecting in the year 2023, first of all, is our results very similar to the one that we have obtained in this year. 2023, perhaps a little bit lower, just because we have had some kind of resettlements, positive resettlements in the year 2022. The working capital normalization, let me say, we started the year 2022 with, if I'm right, something around EUR 700 million-EUR 800 million, and we have reached EUR 2.3 thousand in the year 2022. That is absolutely an abnormal situation.
That i t's due to a huge delay in this settlements of the regulator and, on the other hand, the increase of prices and not the update of these prices by the regulator with the settlement based on historical prices. I don't know, it's gonna be something that depends on the regulator, but we for sure pushed just to obtain the right settlements as quick as possible. Marco, do you want just to?
No, I guess there is nothing else actually to add. No, you did it very well.
Thank you. Next question comes from Javier Suarez from Mediobanca. Please, Javier, go ahead.
Thank you, Mar, and good morning, all. A follow-up question, and excuse me, on the working capital, the working capital thing. Again, on the regulatory working capital, obviously there is an increase that is significant and is related to the lack of settlement for the non-mainland operations. What do you think is a reasonable expectations in people's mind? Is that the expectation that this is going to be recovered in 2023? Or do you think that the period to recover that EUR 1.5 billion is going to be a longer period of time? That would be helpful.
The second one is also on the working capital, the RES working capital, the thing that you define as RES working capital, this EUR 1.3 billion. It is a fair assumption to make that there is going to be a reduction this year, a significant reduction because of the lower need to finance gas-related collateral. If so, how do you see that number evolving on on on BE by the year-end? The third question that I have is on the evolution of the power market, the electricity-free power market, where the company has shown a significant increase in the number of clients, +15%.
The question for you is can you help us to understand the dynamic on new contracting and the implication for your profitability in 2023 and 2024? The final question is on the levy, the 1.2%, Spanish levy. If you can remind us what do you include in your guidance for 2023 and 2024? Many thanks.
Okay, Javier. I will try to answer the fourth question. Marco will answer the first questions. With regard to the 1.2% extraordinary levy, let me say that our assumption was something around EUR 250 million for the year 2023, and around EUR 300 million for the year 2024. Having said that, the updated estimate for 2023 impact is something around EUR 200 instead of EUR 250. In any case, let me elaborate a little bit more in this. Well, we will see what happen.
As you know, we consider this levy to be contrary, in our opinion, to the provision of the European regulation, and perhaps in also in our opinion, it is unfair, in my opinion, taxing revenues and not extraordinary profit. Well, we will see what happen. In any case, going to the point of your question, we are expecting now EUR 200 in the year 2023. Now, Marco, if you want to?
Thank you, Pepe. Hola, Javier. Let's go back to the working capital, the first one on the regulatory. I mean, the stock of regulatory working capital right now, it's EUR 2.3 billion. It is basically most of it or almost it related to islands. It's an important stock of working capital. It's very difficult to make an assumption on this, you know, at least to know what will happen. What we are seeing is that, you know, actually this is the stock. There was an increase of 1.5. This is the stock, and that's it. We, of course, will work to recover at least part of it.
for the time being, that is what it is. On the remaining component of the working capital, you were correctly referring to the fact that it looks like there are events that are probably pushing this number down. On one side, the evolution of the business that we're foreseeing on these first few months, on the other side, the reduction on collaterals. Yes, there are, you know, somehow, inputs that could see this number somehow squeezing. I mean, let's see how the rest of the year will evolve. Regarding the third one, that is the new clients.
You've seen, we had almost 1 billion of new clients, as you have seen probably in our business plan, we are foreseeing even increasing this number along the period in another 400,000. What are the implication of these new clients? You have on one side, you have a higher CapEx because of the cost of acquire. You have also some impact on the DNA, on the amortization of this CapEx. Of course, you have also positive impact on margins. Those are free, liberalized power market clients, you know, there could be a higher margin there. Those are actually the impact that you will see.
We are seeing a normalization in this acquisition of clients. Even though what we are seeing for these first few months, it's a positive, but of course the market is continuously changing. We do see a normalization and not on the same level that we have experienced in 2022 that were really extraordinary.
Okay. Now we have the last set of questions that come from Jorge Alonso from Société Générale .
Hi, good morning to everyone. I mean, I have just a couple of questions left. It's more related to the gas and potentially to have some gas trading activity as well in 2023. If you still see the demand of gas to remain weak and leaving some gas availability for potential opportunistic transactions. I know that the prices this body are not the ones seen last year, but you never know what's going to happen in the rest of the year? Just to see if there is potential room to see again some upside on the gas trading.
The other question is related to your view about the installation of solar capacity in Spain in the coming years, following the amount of environmental permits that the central government and local administrators have granted recently. If you see things can change and accelerate, or for financing reasons or PPA market conditions, you do not see an acceleration of installations? Thank you very much.
Thank you, Jorge. Let me answer and then I will give the word to Marco just to go deep in on that question. First, with regard to the potential upside in the gas market, in the gas trading, you should take into account that the prices in this year, 2023, are lower than the ones in the year 2022. That opportunity is lower than the one that we have in the previous year. On the other hand, we believe that this gas market will continue being weak, so that means that we will have, in my opinion, some kind of opportunities, but absolutely not comparable with the previous year. With regard to the second question, you are right.
If I'm right, it has been approved something like 55 GW that should be put into operation before June 2025. That is, almost, let me say, impossible. It is impossible because if I am right again, this year, the last year, 2022, we have increased at the level of the Spanish market, five-point something, 5.5, let's say, GW, we have deployed that in this year, 2022. If we want just to really fulfill the date that we have now at the level of the Spanish electricity system, it would be needed just to deploy, let's say, 20 GW each year, the next two and a half years. That is impossible.
I don't know that this is going to happen in the future. Let me give you another figure. We have today installed capacity, wind, solar, something around 50 GW that we have been building during a very long period of time. Now we have to add, let's say, the same amount in two years and a half. I don't know what could happen, but I think that could be possible to extend the date or we will see what happen. It's very, very difficult and an incredible situation. We will see what happen. Marco, if you want?
Thank you, Pepe. Again, on the gas trading. Basically, there, Jorge, Pepe was right. There is a much lower price right now and lower volatility, so less chances. That said, you know, you were right also on the trends. We still do see, you know, a trend in clients to trying to save on gas and therefore also in consumptions. This means that this could free gas for other uses. This prices doesn't look so interesting. We have to see what will happen in the future when probably the storage should be filled again. There, I guess that if there will be chances and spikes and volatility, we'll probably be ready just to catch them.
Okay. Thank you, Jorge. We are done with the questions, from the call, and we have just one pending question received by, from the web. That is, by when do you expect the legal ruling on the 1.2% tax levy on revenues, and how confident are you about the outcome?
Well, I guess that on the levy, you know, the real news there is that of course together with all the other utilities and actors, I mean, we have decided just to go against it. We do believe that this is something that, you know, it's unfair. We do believe that we have chances to win this. I mean, the timing for this, it's, you know. Of course we all know also what the impact of this could be. I mean, on the timing, it's difficult to say.
Okay. This was the very last question of the call. Just to say thank you for your participation. As always, we are open to answer any question you may have through our IR department. Thank you very much. Have a nice day.