Good morning, ladies and gentlemen. First of all, we would like to offer a warm welcome to all of you who have joined us today for our 2023 fiscal year results presentation. As usual, we will follow the traditional format given by us in our events. We are going to begin with an overview of the results and the main developments during the period, given by the top executive team that usually is with us: Mr. Ignacio Galán, Executive Chairman; Mr. Armando Martínez, CEO, and finally, Mr. Pepe Sainz, CFO. Following this, we'll move on to the Q&A session. I would also like to highlight that we are only going to take questions submitted via the web, so please ask your question only through our webpage, www.iberdrola.com.
As well, and given that then we will be holding our Capital Markets Day in London on March 21st, any question you may have related to the medium-term and long-term, please save them for that day. In this way, we will be able to adequately answer today the question related to the likes of the 2023 results, and also the ones about the expectations for 2024, and not take up too much of your valuable time. We know that many of you also have the results of other utilities today. Thank you very much for this. Finally, we expect today's event to last no more than one hour or one hour and quarter. Hoping that this presentation will be useful and informative for all of you, now, without further ado, I would like to give the floor to Mr. Ignacio Galán.
Thank you very much again. Please, Mr. Galán.
Thank you, Ignacio. Good morning, everyone, and thank you very much for joining the result presentation. In 2023, net profit increased by 11% to EUR 4,803 million, driven by investment of EUR 11,382 million, with an increase of 6%. This new record of investment reflect the huge activity carried out by the group in 2023, with EUR 18,100 million of purchases to several thousand suppliers, which already employ close to 500,000 people worldwide. Also, with 4,700 new hires to reach a workforce almost at 42,300 employees, and a tax contribution of EUR 9.3 billion globally, up 24%, with EUR 3.5 billion only in Spain, after an increase of 35% year-on-year.
EBITDA increased 9% to EUR 14,417 million, even after EUR 117 million recorded in last quarter for future efficiencies. Without that one, the increase will be higher. This growth in operating result was driven by 8% increase in net worth as a base to reach EUR 42.2 billion and 3,250 MW of renewable capacity installed during the year, reaching 42,200 MW worldwide. In 2023, we complete the installation of turbines at Saint-Brieuc offshore wind farm in France with 100 MW, and we started the production of Vineyard Wind 1, the first large-scale offshore project in US I think today is something like 62 MW already in operation. On top of that, we continue reinforcing our portfolio route to market.
We led the PPA market in Europe in 2023, with close to 1,000 megawatts of new megawatts, and we increased our retail market share in Iberia. In addition, in just three months, we have completed our 3-year asset rotation and partnership plan. A few days ago, we received the final regulatory approval for the sale of 55% of our business in Mexico, and we expect to collect around $6 billion in February 2026. Also, our co-investment alliance with Tier One partners like Norges Bank and GIC are allowing us to maximize investment opportunities and continue improving, at the same time, our financial strength. In 2023, our operating cash flow increased by 8% to EUR 11.1 billion, and the FFO to adjusted net debt ratio reached 25.8, including the Mexico transaction.
So as you can see, in 2023, we have maintained one more year our long-term track record of execution, allowing us to reach or exceed our outlook once again. As mentioned, investment grew by 6% to set the new record of EUR 11,382 million. Around half of total investment were allocated to networks after an 11% increase, and the other half to renewables. Our co-investment partner contributed to with EUR 1.1 billion to these investment figures. By geography, the United States was once again our first destination with more than EUR 3 billion, followed by Spain and UK, with EUR 2.2 billion, 55%-53% up versus 2022.
We also invested EUR 1.8 billion in Latin America, mainly in Brazil, and EUR 2 billion in other countries like Germany, Italy, France, Portugal, Australia, Greece, or Poland, among others. Driven by investment, EBITDA increased 9% to EUR 14,417 million after the EUR 170 million for future efficiencies registered in our Q4 , as mentioned earlier, and the CFO is going to explain with more detail. Network results increased thanks to new rate cases, used mainly in New York, in UK, RIIO-ED2, and in Brazil, where they have tariff reviews in three of our four of our five distribution companies.
Results from production and customers reflect an improvement of market condition in the UK, where ScottishPower recorded the retail deficit accumulated over the last years, and the normalization of production in Spain after very low renewable and nuclear output in 2022, which has, as you remember, obliged us to purchase energy at very high prices to supply to our customers. Our net asset base reached EUR 42,210 million, up 8%, driven by growth in United States, UK, and Brazil. Our regulated assets contribute one-third of our total RAB, EUR 13 billion, with rates in place secured for around 80% of our asset base, including our New York utilities, will represent 60% until April 2026, and Central Maine Power until June 2025.
In the United Kingdom, regulated assets increased by 8% to EUR 10.3 billion, mainly driven by RIIO-T2 and RIIO-ED2. We are already starting the approval process of RIIO-T3, with investment that could exceed GBP 5 billion between 2026 and 2031. On top of the GBP 1.1 billion of the Eastern Link interconnection project, we got already approved. In Brazil, our total asset base reached EUR 9.5 billion, an 80% increase year-on-year, and we have continued progressing in our co-investment alliance with GIC in transmission. Finally, regulated assets were flat at EUR 9.3 billion, affected by the existing regulatory capital investment in the country. However, in the last weeks in Spain, we have seen a few positive signs.
The government has said it may reconsider this limit, and the regulator has started to review the rate of return, which today is, as you know, as low level compared to other countries for the next regulatory period. In renewables, we added 3,350 MW of capacity that will continue balancing our generation supply position. This asset implied total investment of around EUR 5 billion in the last year, with 60% corresponding to offshore wind and hydroelectric. In offshore wind, as mentioned, we have concluded the installation of 500 MW turbines in Saint-Brieuc in France. And the first group of turbines, 62 MW of Vineyard Wind 1, started production in the last days of 2023. On top of that, 700 MW correspond to onshore wind farms in Brazil, Spain, and other European countries.
In 1,150 to solar PV in United States, Spain, Portugal, or Australia. The rest is hydroelectric capacity in Brazil and Portugal, mostly pump and storage. In Iberia, we increased our co-investment alliance with Norges Bank to more than EUR 2 billion and finished the installation of Alto Tâmega in Portugal, the with the third dam of the Tâmega hydroelectric complex, with the last 160-megawatt additional capacity to reach 1,200 altogether. On top of that, we have reached 45,000 charging points, 6,000 of them public, with further acceleration expected through our EUR 1 billion partnership with BP, especially high, ultra-high rapid speed charges. In the United States, the Vineyard Wind 1 offshore wind farm has achieved first power out to the grid.
In Europe, we are also progressing in our second offshore wind farm in Germany, Baltic Eagle, with 476 MW, which will be fully operating in the Q4 of this year, and we have installed as well 91 MW in Poland and Greece. Finally, in Australia, we have commissioned 245 MW of solar PV, and we are progressing on 145 MW of offshore wind. Moving to routes to market, in 2023, we continued reinforcing our integrated profile, providing us with high visibility for the coming years. We lead the European PPA market with almost 1,000 new MW signed, 7% of the total in the European Union. Reaching alliance with top-tier customers like Amazon, Vodafone, and Meta, we are significantly expanding the demand of clean energy. We continue reinforcing our position in retail market.
In Spain, our market increased to 27.3%. Today, we have 8.3 million customers in Iberia, with an average around three contracts per customer. Also, in the UK, we were at the retail market. There's still a strong condition by the tariff cap. We have continued improving our customer service, reaching the first position among all suppliers, according to Citizens Advice. This places us in the best situation to compete as soon as the market reactivate. As of today, we have around three million customers in the UK, with 2.5 contracts per customer. Last week, we received the final regulatory approval for the sale of the 55% of our business activities in Mexico to the equity fund, Mexican Infrastructure Partners, and we expect to collect around $6 billion of the transaction on the 26th of February.
As you know, the business we have divested include all combined cycle gas generation plant that currently supply electricity to CFE. This transaction also ends previous litigation in all power plants that were stopped for regulatory administrative reason, are now back in operation. As a result, we will maintain the remaining 45% of our business, continuing to supply electricity, mostly produced renewable, to our industrial customers. We also keep more than 6,000 MW of renewable pipeline in over 30 projects in 14 states, with 2,000 on tracks for the next few years. This will allow us to continue growing and increasing and creating wealth and job in a core country for us after more than 20 years of presence in Mexico. Yesterday, Iberdrola and Neoenergia presented their full year result, showing a strong performance in both cases.
Iberdrola registered record investment of more than $3 billion. EBITDA increased 10% to $2.7 billion, and adjusted net profit reached $808 million. Driven by new rate cases, they will drive $9 billion of total CapEx until 2026, including transmission and distribution. In renewables, as I mentioned, our Vineyard Wind 1 offshore wind farm achieved first power export, and the company has 1,000 megawatts of offshore wind and solar under construction. Also, the company first repowering project of around 100 megawatts is already underway. In the case of Energia, investment reached close to BRL 9 billion. EBITDA increased by 7% to BRL 3,359 million, and net profit reached close to BRL 4.5 billion.
In 2023, new tariff reviews were approved, covering 70% of Neoenergia distribution asset base, driving several billion BRL in investment over the next five years. In transmission, Energia has continued progressing in the construction of the project already awarded, which will imply more than BRL 10 billion of investment. The co-investment alliance signed with GIC will maximize Neoenergia investment capabilities and preserve its financial strength. Finally, in renewables, over the last 12 months, Neoenergia has put in service 700 new MW and closed an asset swap with Eletrobras related to hydro facilities, as you know. At the group level, all this activity has driven an 8% increase in operating cash flow to EUR 11.1 billion, allowing us to maintain our adjusted net debt below EUR 48 billion.
This figure will be reduced in the coming days to around EUR 42-42.5 billion once the cash from the Mexico transaction is collected. As a result, our financial ratios remain strong. FFO to adjusted net debt ratio reached 23.2 and will increase to 25.8, considering the Mexico transaction. This will mean an improvement of two hundred and fifty basis points compared to 2022 figures. This set of results will allow to the board of directors to propose to the annual shareholders' meeting a total shareholders' remuneration of EUR 0.55 per share, up 10.8%.
Once approved, a supplementary dividend of EUR 0.0348 per share will be paid, which will be paid in July, on top of the EUR 0.0202 per share already paid in January. Additionally, we plan to maintain the engagement dividend related to our annual general meeting, as you know, last year amount EUR 0.0005 per share. Following our commitment with social dividend, this huge increase in our business activities has driven positive environmental, social, and governance impact for all our stakeholders. Our CO₂ emission reached only 55 grams per kilowatt hour in Europe, 80% below our peers. We made 4,700 new hires in 2023, reaching a total workforce of almost 22,300.
Our purchases reached EUR 18.1 billion to 1,000 new suppliers worldwide, employing more than 500,000 people. We also invested EUR 385 million in research and development, becoming the private utility that invests most in innovation, according to the European Commission. Our global tax contribution reached EUR 9.3 billion, 24% more than last year. Out of this, EUR 3.5 billion corresponds to Spain, after 35% increase year- on- year. Just in detail, in 2023, levies in Spain were as high as salaries, all operating and maintenance expenses, external services, and financial costs combined. Thanks to all this social contribution in 2023, we received several recognitions.
To our leadership in ESG by the Foreign Policy Association of the United States, awarded by Standard & Poor's, we include Iberdrola in the top 5% of the companies with the best ESG score worldwide. Also, to our corporate governance by World Finance or to our climate action, like A rating awarded by the Carbon Disclosure Project. So now I will hand over to Pepe Sainz to complete the presentation.
Thank you, Chairman. Good morning to everybody. As the chairman has explained, EBITDA was 9% up to EUR 14.4 billion, and reported net profit grew 10.7% to EUR 4.8 billion, including in Q4 two one-offs for EUR 141 million net of taxes. One related to efficiency plans, as the chairman has commented, EUR 90 million after taxes, and the other to a provision in the UK, EUR 51 million after taxes, that we are expecting to be recovered in 2024. Net profit would have grown 14%, excluded the one-offs in Q4 that I have just mentioned.
FX evolution had a negative effect on our EBITDA results, but it, it's recovered at the net profit. The pound and the dollar depreciated against the euro by an average of 2% and 2.6%, each one, while the real slightly appreciated, 0.6%. Revenues decreased EUR 4.6 billion, or 8.6%, to EUR 49.3 billion, mainly due to the energy production and clients in Spain. But procurements fell more, 23% or EUR 7.7 billion to EUR 26 billion. As in 2022, Iberdrola had to buy electricity due to renewables and nuclear shortfall in Spain at very high prices. In 2023, the situation has been reverted due to a normalized production and lower prices. As a consequence, gross margin rose by 15% to EUR 23.3 billion.
Reported net operating expenses increased 17.8% to EUR 6.1 billion, but excluding extraordinaries and non-reconciliation—sorry, and reconciliation impacts in the US, net operating expenses increased 8.2%. Reported net personal expenses grew 17.6%, but 7.4%, excluding the already mentioned efficiency plan of EUR 117 million in Q4. Excluding also reconciliation impacts in the US and other minor extraordinaries. Reported external services increased 11.1% and 4.8%, excluding the reconciliation impacts in the US and other negative extraordinaries, mainly in the US, where we have the cost of the cancellation of the offshore projects, in the UK, and in Spain.
Levies, as the chairman has pointed out, grew 56% or EUR 986 million to EUR 2,748 million, of which EUR 847 million are due to Spain. As a consequence, levies over net operating expenses ratio in Spain reached 123%, meaning that we are paying in Spain levies more than our total cost of net operating expenses. While in the rest of the group, levies only account for 22% of our net operating expenses. As you can see in the slide, Spanish levies doubled in 2023, representing 86% of total group increase.
Let me highlight the most relevant ones: the social bonus, the EUR 67 clawback, the 1.2% revenue tax, the nuclear tax, the hydro canon, the local land use tax, the eco tax, the nuclear waste tax, another 37 taxes. Clawback and revenue tax are imposed as temporary levies, and we expect that will disappear. Actually, clawback is actually gone in 2024, but thanks to the European legislation, and we expect that the 1.2% revenue tax will also disappear or fall significantly. Nevertheless, excluding these two taxes , the rest of taxes will continue to be in a disproportionate amount that reaches 90% of our net operating expenses, much higher than in other geographies, as commented in the previous slide.
Analyzing the results of the different businesses and starting by networks, its EBITDA reached EUR 6,011 million, 7.9% down, but grew 9% on a recurrent basis, excluding EUR 1 billion of one-offs, with negative impact in 2023, mainly in Brazil and the US, as I will explain now. In Spain, EBITDA fell 3.4% to EUR 1,553 million, affected by the efficiency plans in Q4. Operating performance in the business was in line with 2022. In the UK, EBITDA was up 15% to GBP 1,722 million, thanks to the ED2 new regulation from April onwards, and higher asset base, especially in transmission.
In Brazil, EBITDA fell 6.2% to BRL 9,867 million, due to lower contribution from the transmission business that includes two one-offs, for a total of BRL 2.4 billion. The first one related to GIC deal, minus BRL 290 million , and the other related to the overrun cost in transmissions due to COVID, BRL 2.1 billion, that we have already claimed to ANEEL, expecting to recover them. The negative impacts in transmission are partially compensated by an improvement in distribution, as the tariff reviews had positive impacts, around BRL 700 million positive.
Finally, in the US, EBITDA was 24% down to $1.5 billion, improving versus 40% down as of September, after including in Q4 $150 million of recovery following the New York rate case approval, as its effects are recognized from May 1, 2023. Year-on-year, IFRS evolution is still affected by the negative impact of $550 million positive one-off, booked in the Q2 of 2022, linked to the recognition in IFRS of regulatory assets and $87 million from pension provisions, both accounted in IFRS, but not in US GAAP. US GAAP, EBITDA grew 12.6% to $1.55 billion, also including the recovery of $195 million in Q4 from the New York rate case approval.
Energy production and customer business, EBITDA grew 28% to EUR 8,660 million. Beginning in Mexico, after the recent transaction, EBITDA of the retained assets was $412 million, with higher results from thermal assets, despite lower contribution from renewables, resulting in $89 million more than in 2022. While EBITDA of the disposed assets was $437 million, with lower contribution from contracted plants with CFE due to lower availability. Mexico total EBITDA fell 5.6%-6% to $849 million. In the UK, EBITDA increased 155% to GBP 1,815 million, thanks to the collection of GBP 341 million pounds of 2022 deficit.
In a context of margin normalization this year in our retail business, higher offshore results more than compensated lower onshore results due to wind load factor and the windfall tax. In Spain, EBITDA was EUR 4,277 million, 24% up, driven by production reaching normal levels, with six TWh higher hydro production, compensating minus one TWh of lower wind production, and also higher sales, as the chairman has mentioned, due to almost 2% points increase in market share to 27.3%. Also, contributing to these results were energy purchases at lower prices than last year. Positives on the operating performance evolution has been partially compensated by more than a double increase in levies, as explained before, and higher net operating expenses due to the Q4 efficiency plan also mentioned previously.
In the US, EBITDA reached $741 million, flat, excluding the offshore break cost that drove EBITDA down 2.4%. In Brazil, EBITDA fell 13.9% to BRL 1,880 million, due to lower contribution from thermal business, as last year was exceptionally strong, partially offset by contribution from renewable capacity in operation, around 500 new MW in Brazil. Finally, in the rest of the world, EBITDA fell 1.7% to EUR 420 million, with one TWh higher production due to new capacity in operation, that is more than offset by higher net operating expenses linked to the business expansion. EBIT was up 12% to EUR 9 billion.
D&A plus provisions grew 3.8% to EUR 5.4 billion, mainly due to the business growth with higher asset base and activity, and bad debt evolution due to increased customer billing. There is also, as I have mentioned, some non-recurrent provisions in Q4, including EUR 67 million in the UK, linked to the regulator code of practice that we expect to recover in 2024. Net financial expenses rose EUR 349 million to EUR 2,187 million. Debt-related costs grew EUR 477 million, EUR 149 million due to a higher average net debt, and EUR 303 million due to higher cost of debt, 70 basis points up to 4.97%. That, nevertheless, is below the 5.05% peak at June.
Excluding Brazil, the cost of debt was 3.76%. Cost of debt is in line with the one expected in our capital markets day of 2022. The higher financial expenses have been partially offset by EUR 128 million positive non-debt related results, mainly linked to FX hedges and capitalized interest. Our reported credit metrics remain solid. 12 months FFO was flat at EUR 11.1 billion and up 8% if we exclude the hydro canon payment in 2022. Adjusted net debt was EUR 47.8 billion, and pro forma net debt, including the Mexico proceeds, decreased to a range of EUR 42 billion to EUR 44.5 billion due to some cash adjustment pending, but clearly below the December 2022 debt of EUR 43.7 billion.
Reported FFO adjusted net debt stands at 23.2%, maintaining the September levels, and pro forma ratio, including Mexico proceeds, grew to 52.58%. Our adjusted net debt to EBITDA is 3.3x, 3.30x pro forma, including the Mexico proceeds, and our adjusted leverage ratio was 44% and decreased to 40.8% pro forma, including the Mexico transaction. Our diversified portfolio provides flexibility to target different markets and the right timing, achieving very favorable conditions. In 2023, we have signed deals for EUR 14.7 billion, 91% ESG transactions, reaffirming Iberdrola's commitment. Iberdrola continues to be the world-leading private group in green bonds issued that provide high quality and strong ESG investor demand, driving lower spread than other bonds. Liquidity is at 27 months or 21 months at risk.
Reported net profit grew 10.7% to EUR 4,803 million, but if we add the EUR 140 million, as I mentioned, the growth would have been 14%. Equity method results increased EUR 143 million, thanks to Brazil renewable asset swap. That offsets the already mentioned Brazilian transmission one-off at EBITDA level. Income tax is negatively affected by the positive one-off accounted in 2022 in Brazil, and by the negative one-off in Mexico, to be reversed in 2024. As you can see in the slide, stripping out the effect from the asset rotation from our Mexican transaction, EUR 19 million negative, mainly linked to deferred taxes, partially compensated by lower amortization, a nd the Brazil, EUR 91 million positive, mainly at the equity level, as advanced before.
Net income reached EUR 4,809 million, 10.8% more, in line with the reported net profit and achieving double-digit guidance, reaffirming Iberdrola's high-quality results, underpinned by the Q4, EUR 141 million of negative one-offs that will help 2024 and subsequent year-end results. Thank you very much. Now, the chairman will conclude the presentation.
Thank you very much, Pepe. This result places Iberdrola in the best position to accelerate growth in the coming years. In 2024, we expect 5%-7% increase in net profit, including capital gains from asset rotation. Clearly, exceeding EUR 5 billion for the first time in the 120 years company history. With dividend growing in line with results, we will reach a new record of investment on EUR 12 billion, mostly networks, with focus on United States, driven mainly by the new rate cases of New York and Maine. In the UK, through the RIIO-T2 and ED2, and in Brazil, thanks to the new rate cases in Energia.
Renewables will continue growing, thanks to the contribution of offshore wind, with the 600 MW installed in the 2023 Saint-Brieuc, plus the additional result from our other offshore wind farm under construction. On top of this, we will commission 2,000 MW of new or onshore capacity. In addition, we have already sold 100% of our energy for 2024, with prices secured, and we expect to benefit from lower financial expenses due to the positive impact of Mexico transaction and the co-investment with our partners in other geographies. All this, the result of an integrated business model that maximize growth and predictability, with a recognized track record of optimal execution. In the coming years, networks will continue representing 45%-50% of our EBITDA, 10 points above our European peers.
Focus in high-rating countries with a stable framework. We have already closed rate cases for almost 100% of our asset base until 2025. This model allow us to secure growth and predictable margin in the networks business, as we have done in the last three years, when our EBITDA increased by 8% on average. And we expect the growth trends will increase in the future, driven by the huge investment needs, transmission and distribution in all our geographies, following the analysis recommendation of the COP28, the European Union, the European Commission, or the International Energy Agency, among others. In production and customers, we'll continue balancing our generation and supply position with optimal means to routes to market.
We have already 100% sold to our output for 2024 and around 85% for 2025, with stable margins, thanks to our portfolio, which does not depend on the volatility of fossil fuels. On top of that, we have around 5,000 MW of storage capacity with 20-hour duration of Iberia. That means 100 million kWh of storage capacity, providing us with 100 million, which will become more and more relevant in the market, with higher price volatility, driven by renewable penetration. Already in 2023, this storage capacity allow us to produce 5,000 GWh, 58% more than in 2022. And we have 1,000 MW of more than 20 hours of additional pumped storage capacity under construction.
We also expect continued benefiting for our global PPA portfolio of 12 million retail customers, to which we have provided the best service through clean energy and other value product at competitive prices. On top of this, our diversified geographical footprint in high-rating countries will allow us to minimize regulatory risk. We are convinced that all these competitive advantage make Iberdrola a different company in the utility universe, and that the upcoming changes in the industry, driven by electrification and the penetration of renewables, that will maximize our opportunities to invest and create more value for shareholders and the whole society in the coming years. As you know, we will hold our Capital Market Day in London on March 21, with more details of our outlook. I hope to see all of you there. Thank you very much.
Now, we will answer any question you may have. Thank you.
The following financial professionals have asked the question that I will now put to the senior manager present on this event: Gonzalo Sánchez-Bordona, UBS; Peter Bisztyga, Bank of America; Daniel Rodríguez, Bestinver; Philippe Ourpatian, ODDO BHF; Manuel Palomo, Exane BNP; Tomás Reis, CaixaBank; Fernando Lafuente, Alantra; Rob Pulleyn, Morgan Stanley; Javier Garrido, JP Morgan; Ahmed Farman, Jefferies; Alberto Gandolfi, Goldman Sachs; James Brand, Deutsche Bank; Fernando Garcia, Royal Bank of Canada; Ahmed Farman, Jefferies; Jorge Guimarães, JB Capital Markets; Javier Suárez, Mediobanca; and finally, [Markus Tobkuen from Berenberg]. The first, the first question is related to the net income 2023 and the main drivers that has driven to these results.
Well, the thing the phase I is our increase is 11% due to the higher investment in networks and renewables. I think this 11% is even after EUR 170 million of provision for the future efficiencies, what that means, there should be instead of eleven, should be, as Pepe mentioned, around 14%. So, I think we have higher renewable production. We recovered the hydro resources with resulting in higher production. And I think something I mentioned is the pumping and storage volume, with that avoids volatility.
I think is the average production tradition in Spain and hydro is around 12 TWh, and I think this year, only in pumping and storage, we produce five. So what that means with dry or not dry year, we are able to produce and generate more and more, minimizing the volatility that is already with these new times, I think, so the increase of renewable in the mix is generating. So I think is in terms of the energy purchase as well, we diminish, we diminish the... We diminish the the buying of electricity. Then in 2022, we bought on the range of 200, eh?
Also, the retail deficit in the UK, I think, is almost GBP 300 million, what we had already recovered during the year. So all these are making that one. I think more production, lower purchase, and recovery of the deficit of UK, and more contribution to our networks as consequence of the increase of our investment in these regulated activities. With that, you know, is amount close to 50% of our total EBITDA in this moment.
Next, question is related to Mexico. Could you give us an indication of how much the cash in after tax of the asset rotation in Mexico should be, and how much certain are you on receiving the funds on February 26th?
So I think is we are expecting to receive this on the 26th of February as I mentioned in the in the in the presentation. So and and I think is and that is consequence that the last approval which remind was the competition authorities, which is COFECE. We got the approval a few days ago. We are expecting the one receive this amount, the board of directors of Mexico our subsidiary in Mexico will meet. And and I think is and and I think we will know already the conclusion about the terms of the whatever capital gain we-- they they can already achieve.
I think, in any case, I think all the details about that one will be already... We will provide you as soon as we have all the detailed one that is finally the cash. But certain, before the 21st of March, you will have all the detail, and we will let you all the detail by the 21st of March in the Capital Market Day.
Next question related to the 2024 guidance in net income: Can you please give us a bridge from full year 2023 to full year 2024 net income? What are the main variables that could lead this growth to be in the higher part of the range, +7%?
So, I think the first thing in 2024, I think the first one is the new investment. I think we are going to invest EUR 12 billion, which I think is in networks. We have already commitments on the new rate cases. I think, as I mentioned, in Brazil, we have already 75% of all our RAP is already signed the new rate cases with increase of commitment of investment. In United States, the same thing. With new rate cases, we cover 80% of the asset base. New York and Maine as well, we have new rate cases and with new commitment of investment and new remuneration. In the case of UK, I think it's a new investment on the RIIO-ED2, RIIO-T2, I think I have to say.
In the RIIO-T2, the awarded amount for investment is going to be surpass in a significant manner. So I think it's probably the amount, if I don't remember badly, was on the range of GBP 1.3 billion-GBP 1.4 billion, awarded amount for CapEx. Probably are going to surpass the GBP 2 billion, and I think we are paying according with the extra investment we are making, and in production and customer. So I think is our production is been normalized in the case of wind factor. Hydro reserves are already in line with historical averages, even more than historical averages. I think we are, most of our dams are on the range of 70%-80% capacity cover.
The increase in the role of pumping and storage, as I mentioned, I think last year we made five TWh, probably this year we are going to make more. In offshore, as I mentioned as well, the Saint-Brieuc is already just completely in production. Just to give you an idea, the amount of the contribution of this offshore wind farm of France is similar to the reduction of EBITDA we are going to have in Mexico as a consequence of the transaction. So it's a really, it's a huge, it's a huge operation. In onshore, we expect to put in service 2,000 MW. I think something very important is 100% of all our electricity is sold at prices which are secured.
I think, which I think we are not being affected by the volatility of today's prices. The case of the cashing this EUR 6 billion in the partnership with others, so as well, is going to help already to diminish our financial expenses. And as a consequence, that is what we are expecting, this growth between 5% and 7%, with reaching, for the first time in the company history, this EUR 5 billion net profit by the year-end.
Next question is related to the guidance of net debt. Can you also provide a guidance for the 2024 net debt?
Pepe?
Yeah, we are expecting to end the year in 2024 with a net debt of around EUR 47 billion, more or less.
Related to the hydro in 2024, included in the guidance. In 2024 guidance, what is the extra contribution for hydro versus a normal year? Can you quantify in million euros?
Armando?
You know, as always, our budget is based on average hydro year, as always. But I want to highlight what the chairman said, three very positive from the this year, 2024. First of all, we will full commission the Tâmega facilities, will increase our capacity. The second is the good levels of the reservoirs that we have now. The most important things, we are taking advantage of the market volatility. It's very important, increasing our pump hydro production during the year.
Next question is related to taxes in Spain, the 1.2% revenue tax. What is your expectation for 1.2% revenue tax impact in full year 2024? Any visibility about how energy transition CapEx deduction to 1.2% revenue tax in Spain will be defined?
Well, I think as we explained, I was shocked when I was seeing the numbers when we closed accounts, that seeing that our taxes, a part of the corporate tax, the levies, are more than our personal expenses, more than our external services, more the operation and maintenance, and more the financial cost together. So which I think is, I think the Pepe has already mentioned that, the average in other countries is 20% of the operational cost, and here is 120% of the operational cost. So which I think is something which... Some of these taxes are already temporary based.
I think one has already disappeared, which is the price cap, which has been after the approval of the measure, the new regulation for European Union, the reform of the market. But I think another one, which I think they are still maintained, even it was a temporary. So I think the case of 1.2, a part of them is already in the court, challenging the court. But I think what I heard from the government is that they would like to modify that one in a manner that can be already minimized or transformed according with the... or diminished with the according with the investment you can make.
In any case, I think it is something which has not a logic. It's the only country where they still we are keeping this taxes base in revenues, so which has no sense. And I think it is making already the country, which is I already hear the list, with 38 different taxes or levies in the country, which I think 18 are from the central government, and another 20—well, now it's 22, because there are another two region we have already increased at regional. So I think it is no sense. I think that is making the things in a manner which is not precisely making the things as attractive they have to be.
As you are in transitory measures, we can already live, but I think in a stable base, I think is something which is out of whatever risk in the rest of the world. So, Spain have not to be different as well in that one. We have to align with the rest of the Europeans and align with the rest of the countries, because I think it would like that this country will be as attractive as all we like, then it will be.
Next question has in some way a relation with the one, with the recent answer from you, Mr. Chairman. Networks investment in Spain. We are seeing continued investment upgrades across several countries in power grids, but not as much in Spain distribution.... In which way would you like to be incentivized to invest more, and what is the status of conversation with the government and regulators?
Well, I think what we are facing is a law which was made in 2012, if I remember that, during the previous government. It was after for trying to cover the electricity deficit they have already retained it. I think the country, we have already a huge deficit. Another time, the government, they took certain measures to try to minimize. One of them is that one, which I think is not much sense in, because link the GDP with the investment in grids, I don't know what is the relation.
It's something we has not in my view as engineer. I don't know if for the economists it's different. But GDP and the electricity grid, I not see what is the connection, but that remain. That is the typical thing which is made, and the following government has not already modified that one. So now it's already a global demand internationally, that the if we would like to electrify the economy, we would like to reach the decarbonization target, if we would like to diminish the external dependence, the grids are crucial. It has been said by the COP, in the COP 28. As the European Union is saying the same thing, as the international agency is saying the same thing, and in Spain as well.
The plan of the national plan for renewables and electrification as well is included in that one. So I think that is something with one time to another one, have to be changed. And I think that is what the Minister of Energy, by President of the Government, is already just mentioned, that she is open to change those one. But for that is not enough to take the cap. I think you have- they have to make something attractive. Today's, with the today's rules, if there are no change, the attractiveness of the investment in renewables are very low. I think it's the return expected... In net was sorry, in net was sorry.
The expectation of returns for the next few years, if that is not modified, is much lower than those one we have in the rest of geographies. So I think if all countries, United, leading by United States, which is the highest returns, followed by Brazil or followed by Britain or whatever countries we have present, I think they have to align with those ones. So, and that is what now we are in process. I think it's very open discussion. I think it's what we are perceiving by the regulators and government is the interest of modifying this rule and reaching some level of agreement which makes attractive to make the necessary investment that the country require, and that is what I can tell you about that one.
Next question related to power price in Spain and the UK: Can you share a achieved power price for 2023 and 2024 in Iberia and the UK?
Armando?
Okay, so for this year, 2024, in Spain, we have for our generation for this year already sold on around EUR 100 per MWh. In the UK, the price will be something around GBP 150 per MWh.
Next, related to PPAs, could you position the average PPA price in euro megawatt hour you reached with your new corporate off-taker in 2023 and by geographies?
Armando?
Okay, signing PPAs for us is not new. We have been signing PPAs for many years. But we are continuing accelerating, and we have new PPAs signed worldwide in 2023, for around 5.3 TWh per year in all the regions. As you know, we are the leader in the European market PPA. We are selling more than almost 1,000 MW of contracted supply. That is something around 3.5 TWh per annum that we are selling only in Europe. And for prices, we have been signed, just the last time PPA was signed, for instance, in Germany, is something in the range of 70-80 EUR/MWh.
Next question is related to the offshore wind. Can you talk about offshore wind plans for this year? Which, which auctions do you intend to participate in? How are you seeing offtake prices developing?
Well, I think, as you know, we have already two projects in New England, which I think is, we are analyzing to participate in the joint Connecticut, Massachusetts, and Rhode Island auction. I think, you know, we are committed, but we will be very selective. It depends very much on the terms of this one. We have already, after the participating another one, we have a period of negotiation, which I think is six or seven months, so I think nothing is going to be the final up to the middle of this year or after summer. In the UK, we have as well, I think it's good news. The government, after our conversation with them, has already modified the terms and the conditions of the new auction.
So I think the strike prices for the AR6 auction is 66% higher than it was for AR5. As well, we are analyzing this one. We have, as well, a couple of projects to participate with around 2,000 MW, and I think we will see what is going to be our final position on that one, but we are positive in the view. In other ones, I think there are very many auctions announced in Germany, France, Portugal, Spain, whatever, but in most of them are still in a draft phase. So when we have more details, we will be ready to take a decision if to participate or not.
I would like to summarize: We are positive in the, in offshore, we are committed, we have a good team, but we will be, as we been in the past, selective, going to those one which are enough attractive and not going to those one we feel are not attractive enough.
Next question is related to USA offshore business. Could you elaborate about the US offshore current market condition regarding CapEx and price trend?
Well, I think once again, we were the first mover. I think we won four years ago, three years ago, two auctions for Connecticut, for Massachusetts. We saw that the terms in which we have already made the bid had already changed drastically before deciding to make the FID. And so that's why we went to the authorities of all the states, first, to renegotiate the terms, and then when we saw that that is impossible, we forced ourselves to renounce. Many of our colleagues and competitors were not enough, let's say, agile, as we did.
They not only has not already took the decision we took at the right time, but I think they've been forced to take the decision later on, after making a huge expenditure and committed a lot of money, they forced themselves to make a huge write-offs. I think the cost of renouncing to this project, in our case, was $40 million, which I think Pepe has already mentioned as an extraordinary expenses we have already in year 2023. But another one, they've been forced to make billions of dollars of write-offs on that one. So now the terms, it looks, then is changing. I think the recent auction in New York shows that they are already accepting certain of the rules that we've been already discussing, to give.
Already taken the time between the moment we made the bid for the auction up to the moment that you made the FID. We can't take years because the period of permits and et cetera, et cetera, is long in the state. So I think they gave the opportunity of revising this price auction according with certain parameters. And second, is as well to adjust the final price with certain parameters, inflation or whatever, for the period of the duration of the PPA. So I think those are positive. I think it's now in another state, that's New York, another state, something is light, but it still is not completely.
But they gave already an opportunity, as I mentioned before, to negotiate, since the moment you participate, to negotiate during certain number of months with the different regulators of the state, the terms of your offer. So which I think, probably all these things will be included on that one. If the things goes in the right direction, we will proceed. If not, we will renounce to those ones. So as simple, I think is plenty of opportunities in this moment of different countries for auction in offshore. There are not very many players, but we'll be ready. We have the capabilities, the technology, and the knowledge for making those ones.
I think we would like to be on this one, but as I insist on that one, committed but selective, as we are in all the things related to renewable, particularly in offshore, where the investment are huge.
Next is related to solar PV. In the conclusion slide, you comment on wind on shore and offshore addition. Have you changed your mind regarding solar PV?
No, I think it is. I always say the same thing. I think it is the all technologies are needed for achieving the target of autonomy, decarbonization, self-sufficiency, et cetera, et cetera. It depends. I think it depends on the countries, it depends on the region, it depends on the moment. I think solar PV is good in certain countries, in certain areas of the countries. Wind is good in certain countries, in certain parts of the countries. And so I think we are not in favor of one another one. I think it is it depends. Saying that, they are already we have to analyze carefully in each country what is the curve of production and the curve of demand, as I show you in the last presentation.
I think it's clear, if everybody makes only solar, so probably in the middle of the day, it will be an overproduction of electricity, which I think in some countries, like Spain, for us, it's good because we can already use this overproduction for pumping water. We can already generate electricity in the hours where the sun is not shining. So, that's why I think we are not in favor of, again, it depends. But I think in the particular case of Spain, we feel that large-scale production of solar can already give us an opportunity of gaining and making extraordinary contribution of all our large-scale pumping and storage facilities. We are unique in the country on this one, and we continue already investing. We've been first movers on that one for the last 20 years.
We continue being on this one. I think we just completed the pumping and storage facilities of Alto Tâmega in Portugal, which is fully connected with Spain as well, and Portugal. We are, in this moment, as I mentioned before, already building new pumping and storage facilities. For almost 1,000 MW, we gave already 20 million kWh of pumping and storage capacities. So last year, we made 50 hours of pumping and storage production in Spain, and probably this year, if the volatility continues, not only we can help the system, thanks of our pumping and storage facility, because this volatility is very, very difficult to be managed in the system.
But as well, that same time that we help the system to keep the lights on, we expect to have already some extra contribution to our accounts.
Next question is related to M&A. At the beginning of the year, you ended the merger agreement with PNM, and you will soon receive the cash for the Mexican generation assets. How do you intend to invest these additional resources?
Well, I think we will have the meeting on the 21st of March, the Capital Markets Day, and we'll give you more detail. But I think I would like to tell you something clearly. I think I mentioned that our... In this moment, in networks, we have huge opportunities. So, United States, I think only in the case of New York, our case, commitment is $7 billion of investment up to 2026, in transmission and distribution. Plus another probably $3 billion in transmission and up to 2030. We have already UK transmission, as I mentioned, huge demand.
Only I think the recent days, we have launched an auction for GBP 5.4 billion of purchase of equipment, expecting to secure the supply chains for the future investment required in the country. And, and I think in Brazil, the situation as well is huge on that one. So I think we have plenty of opportunities, either in the state, in networks, either in Brazil, in networks, either UK, in networks. So I think only that one. Plus, I think what I mentioned, the auctions, where, that we can participate, in, in renewables in different countries.
But I think certain networks, which is already our core business or more core business, we represent almost 50% of our EBITDA, is already an area in which we have plenty of opportunities to grow with existing commitments we have already taken in different countries.
Last question is related to hybrid issues. We saw Iberdrola recently issued a hybrid bond with coupon around 4.7%. That this indicated that the company could undertake more hybrids, and if so, how much more hybrid capacity the company has.
Pepe?
Well, yeah, no, as we mentioned in the last Capital Markets Day, the strategy of the group is to maintain more or less the same hybrids that we have right now. We issued EUR 700 million hybrid because we had to roll it over, no? We don't have more hybrids, you know, to roll over in the next month, so we are comfortable there. But the idea is not to increase the amount of hybrids issued by the group? Although, as you know, the group could issue much more, has a much higher hybrid capacity? In principle, the strategy is to maintain the same hybrids issued as we have up to now.
With this 14 question, we are finishing the Q&A session. Now please let me now give the floor to Mr. Galan to conclude this event.
Well, perhaps I will conclude with certain message of optimism. I think we are already certain opportunities, where has already been a problem, but I think can be an opportunity. Taxes cannot be worse levies, so I think it can improve. The investment of Mexico is a clear opportunity. Co-investment with others is as well a good opportunity for diminishing our financial cost. 50% of our business is regulated. Regulated means we are protected against of financial cost, which is a pass-through, and is protected against inflation. So, we are already a lot of opportunities in the regulated business to grow, and as well, we have already a lot of opportunities in renewables being already selected.
So, that why I think is, those things and make ourselves a bit different, and I think that will be the basis of our Capital Markets Day in 21 March. So up to this day, thank you very much for attending this, presentation. And I think you have any, any question, I think our Investor Relations team can already give you additional information that you may require. Thank you very much. We'll see you in London on 21 March. Thank you.