Gentlemen, first of all, we would like to offer a warm welcome to all of you who have joined us today for our 2022 nine months results presentation. As usual, we will follow the normal format given in our presentation. We will begin with an overview of the results and the main development during the period given by the senior executive team that usually is with us, Mr. Ignacio Galán, Mr. Armando Martínez, and finally, Mr. Pepe Sáinz. 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. Please ask your question only through our webpage, www.iberdrola.com.
In addition, we would like to ask you to focus your questions as far as possible on these results. Our next year's operating and financial magnitudes will be released, as you probably already know, on the ninth of November at our Capital Markets Day to be held in London. Finally, we expect that today's event will not last more than 45 minutes. Hoping that this presentation will be useful and informative to all of you, now, without further ado, I would like to give the floor to Mr. Ignacio Sánchez Galán. Thank you very much again. Please, Mr. Sánchez Galán.
Good morning, everyone, and thank you very much for joining today's conference call. I would like to start saying that, as you know, in yesterday board meeting, we appointed Armando Martínez, our group CEO. Armando, who is here today with me as usual, will continue in charge of business and countries of the group, as he has already done over the last years as business CEO. In the first nine months, our net profit reached EUR 3,104 million, up 29%, driven by strong operating performance in all countries except in Spain, where net profit decreased by 14% due to the negative impact of gas prices on power market, driving higher costs that we did not pass to customers, and different regulatory measures implemented.
EBITDA reached EUR 9,529 million, up 70%, thanks to the positive evolution in all geographies, except in Spain, as I mentioned, are reflected also in operating cash flow, which increased by 28% to EUR 8,200 million. Investment reached EUR 7,600 million, up 14% for a total of EUR 10.5 billion in the last twelve months. This strong increase in activity has resulted in 4,700 new hires and in the tax contribution of EUR 7,800 million over the last year, showing again that our model produce more clean energy, less energy dependency, more jobs, and healthier public finance, responding to the social needs, especially in situation like the current one. We have also continued reinforcing even more our business and financial profiles.
Our liquidity of EUR 24 billion and our strong financial position with FFO net debt above 24% allow us to face the current market situation from a solid position. Driven by the set of results we are presenting today and the evolution expected in the last quarter, we are reaffirming our net profit guidance for 2022 at EUR 4.2-EUR 4.4 billion and maintaining our commitment to an increased shareholder remuneration. Yesterday, the board of directors approved a 5.9% increase in interim shareholder dividend to 0.418 euros per share. As mentioned, EBITDA was up by 70% to EUR 9.5 billion, driven by 24% increase in networks business, which benefited from higher asset base in all geographies, the entire rise resulting from our stable regulatory frameworks, mainly in Brazil and United States.
Thanks to this evolution, networks already contribute to 50% of group EBITDA. EBITDA production and customer increased by 15%, driven by 2,000 MW of new capacity installed year-on-year, which offset the lower renewable production in Spain due to very low hydro output and moderate wind factors, and the best evolution of energy margins driven, as I mentioned before, by gas market dynamics affecting both Spain and the U.K. Also, our geographic diversification has allowed us to benefit from revaluation of U.S. dollar and Brazilian real with a positive impact in more than EUR 500 million on EBITDA. Investment continued increasing over the third quarter to reach EUR 7,600 million, year to date, up 14%.
Half of this figure was dedicated to renewables, mainly offshore wind projects in the U.K. and U.S., France, and Germany, as well as new wind and solar facilities in Spain, United States, and Australia. Networks investment increased by 10%, reaching a contribution of 40% to the total group investment, even in a period of strong activity in offshore wind. The United States and Brazil contribute 70% to networks investment. Driven by all this activity, total investment reaches EUR 10,500 million in the last twelve months, as I mentioned as well. Over the last quarter, we have achieved relevant milestones in our business and geographies. In networks, Avangrid completed the filing rate cases for these distribution licenses in New York, Maine, Connecticut, and Massachusetts, covering 80% of its total asset base.
The usual process is currently ongoing, with new tariff expected in 2023. Regarding the NECEC project, following the decision from the Maine Supreme Judicial Court, the trial court will make its final decision by mid-2023. In the UK, conversation with Ofgem on the RIIO-ED2 framework had continued after the draft determination of June, and we expect a positive final decision before the year end. Also, in July, Ofgem has approved the proposed Eastern Link in HVDC transmission interconnection that will be developed by ScottishPower in a common joint project with National Grid. It is expected to start construction in 2024 and operational by 2027. Also in the UK, the government has published a new energy security strategy that will require additional investment in networks to reinforce resilience.
In Brazil, we have already put in operation around 20% of the new transmission asset awarded in the auction held since 2017. In production and construction, 2,000 MW of offshore, onshore wind and solar awarded to ScottishPower in Round 4 are progressing as scheduled. We expect onshore wind and solar asset to be operational in 2023. In Spain, we have reached an agreement with BP to deploy 11,000 fast charging points for electric vehicles in Spain and Portugal. The deal includes an option to extend its scope to other geographies as well as to green hydrogen. In the United States, Avangrid has signed an agreement with Sempra to develop Project Linkage to green hydrogen and green ammonia infrastructure in Texas. In Brazil, we have already put into operation 300 MW of new renewable capacity corresponding to Luzia Solar project and Oitis Wind Farm.
Iberdrola International has commissioned 200 MW since January in Portugal and Greece. In Australia, where our Port Augusta wind and solar hybrid facility is already operating, and we have added a new 1,000-MW wind projects to the Iberdrola Australia pipeline. Iberdrola's resilient business model is allowing us to maintain our activity and preserve our financial strength in the current energy and macro scenario. Thanks to our geographic diversification in countries like the United States, in which we are now deriving a positive impact from exchange rates. Our growth is based on networks and renewables with regulatory arrangement or contracts that provide significant protection from any negative evolution of demand or inflation. We have 90% of our production in Spain sold for 2023, 70% for 2024, and 50% for 2025.
A limited exposure to gas in Europe, with only 14% of our total European output produced with combined cycles. Our model is not based on speculative energy trading, which minimize our exposure to volatility in wholesale energy markets. Thanks to our prudent procurement policy, we have secured 100% of our needs for 2022 of equipment, 90% for 2023, with prices closed or hedged. Also, 75% of our debt is at fixed rates, which incorporate the maturity of 6 years, and our liquidity position has reached EUR 24 billion. Finally, our strong cash flow generation of EUR 8,200 million, up 28% from previous year, has led to an FFO to adjusted net debt ratio of 24.3 as of September. The current scenario also demands from all of us, companies and individuals, awareness and sensitivity.
Based on our commitment to social responsibility, Iberdrola is contributing to reduce the impact of the crisis on families and industries in the short term, and also proposing and implementing structural solutions to avoid future crises. Thanks to our zero emissions generation portfolio, we continue maintaining stable prices well below current spot market prices to our customers, which, as they renew the contracts, are being affected by extra surcharges imposed by recent regulatory decisions in Spain. We are also maximizing the availability in our generation fleet, promoting a more efficient use of energy and focusing our attention to the most vulnerable customers.
We continue increasing our investment up to EUR 10.5 billion in the last 12 months in renewables and networks to provide energy self-sufficiency, hiring 4,100 new employees, and contributing with seven thousand eight hundred million euros in taxes in the different countries where we are present. We are also aware that leaving the current crisis behind will require joint action and consensus for public and private sector. For this reason, we have been playing an active role in the conversation with authorities. There is now almost full consensus the gas market dynamics are the origin of the energy price problem, and that a coordinated response at European level is necessary in the short term to preserve the single market. Using public funds to support vulnerable customers and boost economic and digital activity as it was done in the COVID crisis.
Accelerating investment in networks and renewables to improve self-sufficiency, reduce costs, and promote economic activity, avoiding, as we saw, a similar crisis in the future. That is what the REPowerEU package indicates. Our two listed subsidiaries, Avangrid and Neoenergia, also presented results showing a strong performance in both cases. Avangrid net profit increased by 35% to $734 million.
$734 million, thanks to the positive impact of rate cases, increased renewable production, and the restructuring gain due to our agreement with CIP. Gross investment reached $2,408 million, with two-thirds allocated to networks. In the first nine months, Avangrid installed 475 MW on offshore wind and solar, has already closed 300 MW under construction. Additionally, the company is progressing in the construction of 1,600 MW of the offshore wind project in Vineyard Wind and Park City Wind off the coast of Massachusetts. In Brazil, Neoenergia's net profit increased by 15% to BRL 3,782 million, mainly driven by higher asset base in networks, the impact of tariff reviews, and the consolidation of CEB Distribuição. Gross investment reached BRL 7,449 million, 7% more than last year.
EBITDA reached EUR 8.2 billion. Our FX evolution has had a positive effect, close to EUR 570 million at the EBITDA level and EUR 66 million at the net profit level as we were already hedged for the year in Q3. The dollar rose against the euro by an average of 12%, the pound 2%, and the real 17%. Revenues increased by EUR 10 billion to EUR 37.9 billion, and procurements grew by EUR 8 billion, reaching EUR 23.2 billion. As a consequence, gross margin rose by 16% to EUR 14.6 billion and 9% excluding the FX impact. Net operating expenses grew 20% to EUR 3.8 billion.
Excluding FX and non-recurring effects, mainly linked to the positive impact of asset rotation that we had in 2021, operating expenses grew by 7%, two percentage points below gross margin growth on a recurring basis. Analyzing the results by business and starting by networks, its EBITDA grew 21% to EUR 4.8 billion and 12% excluding the FX impact, with all geographies performing well except Spain, where EBITDA fell 17% to EUR 1 billion due to EUR 206 million negative impact linked to an issue affecting the valuation of certain network assets. We have appealed, and we trust in the merits of our appeal.
In Brazil, EBITDA grew 20% to BRL 7.8 billion, driven by our increased asset base, positive impacts in distribution from tariff adjustments and operating efficiency with net operating expenses growing 12%, well below the 18% growth at the gross margin level. In the US, IFRS EBITDA was 49% up to $1.6 billion after a $550 million positive one-off recognized in the second quarter linked to a New York order that allows to accrue the recognition of certain regulatory assets into the group earnings, providing a more stable EBITDA and aligning the IFRS and US GAAP accounting in revenue recognition from June onwards. In addition, there is a recurrent positive evolution of the business derived from the rate cases linked to higher investments and higher asset base.
US GAAP EBITDA increased 12% to $1.3 billion, not accounting for the above-mentioned impact, which is only in IFRS. Finally, in the UK, EBITDA increased 3.3% to GBP 677 million, thanks to our higher asset base. Energy production and customers business EBITDA grew 15% to EUR 4.7 billion and 10% excluding EUR 186 million of FX impact. In Spain, EBITDA was EUR 2.3 billion, 12% up. A moderate growth despite the very high price environment that we have seen with the spot prices increasing more than 138% as a consequence of the group fixed price policy sales and lower renewable production. Once again, our results prove that Iberdrola is not taking advantage of the current high pool prices environment.
In the US, EBITDA decreased 18% to $535 million due to the positive contribution of the Texas cold snap accounted in the first quarter of of last year, partially compensated by a 5% higher output due to new installed capacity and better wind resources versus 2021. Excluding Texas cold snap impact, EBITDA would have rose slightly. In the UK, the EBITDA grew 26% to GBP 571 million, driven by higher wind output at better prices. Compensating the high energy procurements at higher price than the SVT tariff. In Mexico, EBITDA grew 3.8% to $709 million.
2021 was negatively affected by the Texas cold snap, and this has been partially compensated by lower thermal production in 2022. In Brazil, EBITDA grew 39% to BRL 1.6 billion, driven by Termopernambuco combined cycle and 453 MW of average new renewable capacity in operation. Finally, in the rest of the world, EBITDA grew 20% to EUR 318 million, with higher contribution from both onshore and offshore business across different geographies. Depreciation and amortizations plus provisions grew 14% to EUR 3.9 billion and 8% excluding the FX impact. D&A grew 12% to EUR 3.4 billion, mainly due to the higher network asset base, activity, and renewables growth. Excluding the FX impact, the growth was 5.9%.
Total provisions grew 36% to EUR 435 million, 27% excluding the FX impact. Nevertheless, I would like to stress that the commercial debt ratios are still under control, as bad debt increase 70% is below the billing increase. The ratio of debt of bad debt provisions versus billing fell 12% to 0.96%, and the overdue debt ratio of more than 90 days over billing ratio fell 11% to 5.82%. September 2021 financial results included EUR 145 million of positive one-offs. Excluding that, recurring net financial expenses grew EUR 538 million to EUR 1,379 million. Debt-related costs explained EUR 396 million. EUR 179 million due to a higher cost of debt, mainly due to Brazil.
That nevertheless is more than compensated at the EBITDA level by revenues indexed to inflation. Excluding the debt in Brazil, our cost of debt was up only two basis points to 2.89%. There is also a EUR 92 million increase due to higher average net debt balance, and the FX impact was a EUR 125 million linked to the US dollar and the Brazil appreciation. Non-debt related costs increased a EUR 142 million, mainly linked to negative mark to market of FX hedges. Iberdrola's debt is well positioned for the rise in inflation and interest rates, as we have had a prudent approach in funding. Our debt, excluding Brazil, is 84% fixed, including EUR 5.2 billion in forward start swaps that we have at this moment.
As you can see on the slide, our fixed debt structure is higher than our fixed debt revenue structure. Around 30% of our EBITDA is directly linked to inflation and another 20% indirectly. Our strong cash flow, as the chairman has said, with our FFO up 28% in the period, compensates the growth in investments, allowing the company to maintain debt under control. We have had a working capital active management that has allowed us to reduce negative impacts on this working capital and collateral needs, affected by high energy prices and regulatory measures that force us to fund taxes and suppliers. Collateral had only an impact of EUR 0.2 billion. The EUR 44.3 billion does not include EUR 700 million sale of the 49% of Wikinger. Including it, our debt would have been EUR 43.6 billion.
As a consequence of this, our adjusted credit metrics continue to improve. Our adjusted net debt to EBITDA improved to 3.3 times. Our FFO over adjusted net debt rose almost 1 percentage point to 24.3%. Our retained cash flow adjusted net debt was up to 21.9%, and our adjusted leverage ratio strengthened to 41.4%. At present, we maintain an ample liquidity up to EUR 24 billion, 27 months coverage of financial needs, and 15 months in a stresses scenario, including the possible PNM acquisition. Iberdrola has been able to close up-to-date transactions to cover 100% of our financial needs up to year-end. In addition, our sources of financing continue to be highly diversified with access to all of them. Our average life of debt is 6 years.
Net profit grew 29% to EUR 3.1 billion. Equity method includes EUR 225 million of positive non-recurring impact as a result of the Vineyard Wind restructuring agreement reached with CIP. In addition, the negative one-off related to U.K. taxes recorded in 2021, together with the tax exception of CIP gain and other fixed fiscal effects favorably affects the evolution of our net profit. In the annex, you have the calendar for the interim dividend payment. Now, the chairman will conclude the presentation. Thank you very much.
Thank you, Pepe. To conclude this, results show once again the benefit of the model that the company has been implementing for the last two decades, that today is proving more valid than ever. Based on our evolution up to September and our expectation at the year-end, we are reaffirming our net profit outlook to EUR 4 billion-EUR 4.2 billion. In production and customers, we will close the year with 2,500 MW of additional renewable capacity, and we are seeing and expect some normalization in the wind resource in the fourth quarter, although obviously, this will not fully revert the trends of the first nine months. All our production for the fourth quarter is already sold. Our supplies are closed with prices secure, and we have minimal exposure to market volatility.
In networks, full year investment will reach EUR 4,600 million, with a stable tariff framework that protect our result from macro instability. On top of that, we will continue improving operational efficiency. In terms of financing, 75% of our debt is at fixed rates. Our liquidity position of EUR 24 billion allow us to cover 27 months of needs. We expect to continue having a positive impact of exchange rates, thanks to our geographic diversification. Taking into account all these factors, the board of directors has approved an interim shareholder remuneration of 0.18 EUR per share, with an increase of 5.9% payable on January 2023. This shows, once again, our commitment to sustainable growth in dividends. As usual, a supplementary dividend will be paid in July 2023.
To conclude, these results show that Iberdrola is in a good position to manage the current volatile situation, driving growth, maintaining financial solidity, contributing to alleviate the impact of the crisis of those which are more affected, and investing to contribute to self-sufficient sustainable net for their energy system. We will give you detailed information on of the Company's plans in our upcoming capital market day that will be held on November ninth in London. You are all invited to attend in person or virtually. Thank you very much for your attention. Now we are ready to answer any questions you may have. Thank you. The following professionals have asked the question that I will be putting to the top management in the next few minutes.
From Credit Suisse, we welcome Mac, Mark Freshney, and we say see you soon to Stefano Beccato, who moved recently to the buy side. Next is Alberto Gandolfi from Goldman Sachs, Arthur Sitbon from Morgan Stanley, from Jefferies, Ahmed Farman, Mediobanca, Javier Suarez, Fernando Garcia, Royal Bank of Canada, Deutsche Bank, James Brand, José Ruiz, Barclays, JB Capital Markets, Jorge Guimarães, and finally, from Alantra, Fernando Lafuente. The first question is regarding the guidance, and the question is: Full year 2022 guidance includes any impact of Spanish 1.2% tax on revenues? The answer is yes. I think the main factors in our outlook is in renewables. I mentioned we will have 2,000 new megawatt installed. We expect normalization of load factors.
We have production already sold, as I mentioned as well, with prices close to 70 EUR/MWh wholesale price. In net debt, we have the plan to invest, as I mentioned as well, EUR 4.6 billion in the 12 months. We have positive impact on FX and operating results, especially in Brazil and United States. That is the main reason. We are focused on net debt. We are not a speculative trading, so we are not affected by collaterals or similar. We have high liquidity. We have a fixed rate debt, as I mentioned as well. That is the reason why we are maintaining that one.
That's why we are already we propose in the board this increase in dividend of EUR 0.18, which is almost 6% increase to our previous year. I think this is already included, yes. Next is, given the spike in interest rates, do you think that the company has to reconsider its financial structure? Well, Pepe, perhaps you can already maintain that one. I think when the things goes well, have to be maintained. Nevertheless, Pepe, you can already explain why we have to maintain that one in more detail.
No, I think that actually I agree completely what the chairman says. I mean, up to now it has worked quite well, and obviously we are going to maintain this financial structure. That doesn't mean that we can move a little bit more fixed loading depending on how we see the future of the interest rates. I think we've had this strategy for the last year and right now this protects the balance sheet in cases of high rises of interest rates that we have, as we are seeing right now.
Third question, sir. Why did you promote Armando Martínez Martínez from Business CEO to CEO position? Is this the beginning of executive succession plan? Well, I think it's this appointment is a sign of continuity, so I think it's nothing new. I think it was planned a long time ago. I think in his new position, he will continue to lead the group business, and I'm sure he will do as well as he has been doing in the recent years. I think it's a continuity, it's not a revolution. What we would like is something we was already planning. We see the opportunity of making precisely in this particular moment. This is not. It was something that was already planned a long time ago.
This question is regarding debt. What are your expectation of cost of debt for the next years compared to 9 months 2022? Do you reiterate your net debt guidance of EUR 44 billion by the end of 2022?
Pepe?
Well, in the next years we will tell you in the Capital Markets Day. What I can tell you is that the cost of debt will be more or less similar to the September level, no? In that sense, there are not going to be many changes on that. Yes, we reiterate the guidance. I mean, EUR 44-45 billion by the end of 2022 is where we are expecting to close.
Fifth question is, you show a slide with a decline in bad debt. How concerned are you about increases in the future, and what are you seeing in the previous cycles?
I think, as I mentioned, we are taking measures not only to improve our position, but also to help our customers in a very complex situation, as I mentioned already during my presentation. I think examples are, for instance, we are providing payment flexibility for those who have difficulties in payment. I think, Pepe Sainz, can already give all the details of all these things.
Yes. Well, this is what we showed. It is true that you know right now we are being able to maintain you know the ratios under control. We have to be prudent because obviously you know this is something that we are monitoring. Right now as you can see, we have seen a total decrease in the bad debt provisions, or provisions over billing and the overdue debt, 11% decrease over billing. As I was mentioning, as the chairman has mentioned, we are going to be very, very vigilant on these ratios to make sure that we are maintaining them under control.
European scenario. Next, can you please give us your latest views on the European debate on how to reform the energy system? I'm interested in Iberdrola's views on, one, effectiveness of a price cap for gas prices. Two, view on how to finance that price cap. Third, proposal for the full reform of the system since marginal system does not work any longer.
I think I'm quite pleased that after several months talking about many things, the heads of state and government of different countries has already arrived to the point, initial point that the European Commission was mentioning July last year in the document, and they make already the toolbox, which is that the gas market dynamics are the cause of the problem. It's not electricity. Electricity is the solution. The gas market was the problem. I think we talk a lot about marginal system of electricity, but we are not talking much about the marginal system of the gas. Now we are really talking what is the TTF.
I think for months, we've already heard what is TTF and the difference between the different European markets, which is in the case of Spain and MIBGAS, which is not linking with the TTF. I think the prices of the gas in a certain contract is linked to the oil price or the coal price or the electricity prices. Nothing to do with the TTF. I think the marginal system of gas is based in Europe on TTF. Now heads of state are talking about how to reform the gas market, which is the cause of the problem. I think after these meetings, now we are arriving at the solution, accelerating the electrification to avoid new crisis. And this require several thing.
One certainty is to accelerate permits and to provide incentives to investment. If the way is, if it's not already modifying the process of obtaining the permit, and instead of incentivizing or penalizing renewables, who is going to invest in Europe? Toward that, we are seeing already in United States what they're doing. The IRA, what they are already providing is precisely certainty and incentives to invest in United States. I think in all sectors. In renewables, they are extending the PTCs for 10 years, so they give visibility for 10 years in a way that we will know that whatever investment we will make during the next 10 years, we will obtain these 30% tax credits. They have already defined incentives for hydrogen.
Europe, we are talking about 10 million tons of hydrogen, but the incentive in Europe is almost none compared with Americans. In America, part of the PTCs, ITCs for investment in green hydrogen, which means green electricity for making already hydrogen, they're giving $3 per kilo of hydrogen produced, which I think is making that attractive. Same with electrification, providing certain helps for incentivizing the electric transport. I think that my point. My point is, it's good that now all the European or most European countries are understood, then the problem is the not properly working market of gas. The marginality of the gas-based TTF is not reflecting the reality of the cost of gas worldwide. That is something they are already in this moment looking for modifying. That's positive.
The second thing, they are understanding the only way to avoid future problems like that one or crisis like that one is to accelerate the construction of more renewables and to diminish the external dependency. That means to provide incentive for making that. The last one is that, if instead of making that one, they continue or they make penalizing those who can already provide the solution should be very difficult that Europe achieve the targets for the decarbonization and the self-sufficiency that the heads of state are already in this moment targeting for 2030.
Next question is, considering this spiking rates, do you plan to slow down CapEx in renewables? Probably this question will be answered in the London on the ninth of November. The second question regarding this thing is, do you think PPAs prices will adjust to reflect the higher rates?
I think we've been for a long time already predicating then the best way to have a stable market is to increase and incentivize PPAs, bilateral agreement between vendors and buyers of electricity. I think that is for instance what we have already in a country like United States, where most of our electricity is sold already through PPAs. Europe, now we are seeing a current increase in the demand of PPAs globally. These PPAs already are reflecting the new situation. I think we have higher costs. The CapEx is increasing to what it was. The inflation is affecting it as well to the equipment and to the labor, and the rate of interest.
I think that is already very much extended in the global corporation. There is one important point that for making these PPAs, we need already more regulatory certainty. How can we sign some agreement for 20 years if we don't know what is going to happen in the next 15 days? We need already the certainty to avoid and to decrease this dependency of export market to provide already these fixed prices. Certainly, customers have more and more appetite for fixed prices. I insist on that one, we need more stability, clarity and incentives to promote the PPAs in Europe as they are already doing in countries like United States or Australia, which is the same thing as well.
Next question regarding renewables, onshore wind and solar. On one side, we have higher raw material costs, higher cost of debt, supply chain issues, and then there are indications that PPA prices are higher too. Overall, what does it mean for IRR to walk spread on new onshore wind and solar projects?
I think we are analyzing case by case. I think that is what you've mentioned is true. If the equipment is more expensive or the rate of interest is higher, I think that is affecting the cost. I think we are looking at it case by case to see what is the return we are already achieving on that one. In fact, I think we have access to different routes to market and from participating in auction to bilateral agreement through PPAs or already selling through our retail network. I will update all this thing in the next Capital Markets Day.
It's certain that we are already very much prudent in the way of how we are already looking to the investment case by case.
Next question. Could you walk us through the main reason on your lower capacity addition targets for renewables in the US for 2025? Are returns going down there? I think that probably some information given by Ignacio at our capital markets day. So we can answer now or we can move to the Q&A.
I think you mentioned good, what is the question again? I think they will be answered on that one. I think, Globally, I can tell you already the permitting is a key limitation factor in all countries. I think in this moment we have few thousand megawatt already, as far as I remember, pending of approvals in different states. Nevertheless, globally in the group, as I mentioned, I think we have already 14% more investment in these nine months than the previous year. Which I think we continue already in this one. It's certain that we are already more focused in offshore technology, which is less megawatt, much higher investment and high return as well.
We will provide all these details on the ninth of November on this one.
Question number 10: What are your gas contract references to?
Our gas reference? Well, I think first thing I have to say that we are not exposed to Russian gas. I think it's we had already secured our power plant suppliers through forward market we are not already perceiving risk of delivery. I think it's most of our business we continue selling gas to our customers in the delivery market or to regulatory tariff, and I think those ones are mostly regulated as far as I know. I don't know very much in detail, but there's nothing you can't already mention. It's not much. It's not very important for us. I think to the MIBGAS in the case of Spain, I think it's my feeling that that is related to that one.
I think you can provide this information. My message is we have not already contract of gas take-or-pay contract. I think we are buying the gas case by case when we need already for our combined cycle of gas. In the case of retail, I think we have certain agreements for that one which is linked to the price we are selling. We are already having some margin on this one. My thing is, it's not already open position, but I think the position which are already hedged already with the contracts to final customers on those ones.
This question probably will be answered as well in the capital market day, but I'm going to make it. How is higher cost of debt and WACC impacting farm-down valuations?
What is the higher cost debt? You reply, Pepe.
I think that for the time being, it is true that the higher debt and cost of capital will probably reduce a little bit the farm-down valuations. Also it is true that there is a lot of money available, capital that wants to deploy in the infra funds, and there is a lot of interest. We are seeing a lot of interest for the farm-downs that we are analyzing, so we are still expecting good prices for these assets.
I think perhaps at this point I can give you, as Pepe mentioned, the example of the last transaction, which is already the minority stake sold in our wind farm in Germany, which is Wikinger. When we raise something like EUR 100 million for the 40% of this one, which I think as is a minority one, we are not really making any capital gain in our account, but it certain has already a very good price comparison with the investment with the CapEx we have already used for that one. I think similar thing we are seeing on that one. Our investment is important to say, and our divestment is important to say that we are not contemplating already capital gains on that one.
It's a way of sharing the risk and already helping to fund already, especially these large projects.
Next question is regarding the UK situation. Is the macro environment of higher discount rates and weaker pound currency since the CFD was bid for the one, East Anglia ONE in May 2022 likely to change the business case and whether Iberdrola goes ahead with the project?
Well, certainly we will go ahead. I think the first one is certainly there. In the case of East Anglia THREE, which was already awarded this year, I think most of the or all the equipment has already bought and has already hedged on that one. I think the risk there is minimal. I think even we have already secured the financing. Perhaps, Pepe, you can already give details for that one. It's a project which is quite well, let's say, secure in all the matters. Related to the future one, I think we have the East Anglia ONE North and TWO.
What we are aware of is another 1.4 gigawatts. I think we will be certain if we go through to the next auctions. We will apply the prices according to the costs at this time that reflect the reality of the market. I think for this one, East Anglia THREE, I think all the prices are hedged, and at the moment we have already closed, including the financial structure. Pepe, you would like to add anything on that one, please do.
No, completely agree from a financing-
Rate of exchange included.
Yes. That is what I was going to say. We have most of all the supplies hedged at the FX and the funding also is forward hedged.
This question has some personal comment of the analyst, but I'm going to do it. In response to irrational behavior by some European government, which in some cases can amount to expropriation, would Iberdrola consider tilting CapEx towards Brazil and the U.S., where returns are better and regulatory risk lower?
Well, I think that question is going to be replied on the investor day on the ninth. You see what is our mix of our investment, what we plan to invest more on this one. Certain uncertainty is not helping to the investment decision.
Next question is regarding the gas. Are Spanish gas customers moving to the regulated tariff? Financial impact on Iberdrola?
We are, let's say, irrelevant in our gas business in Spain. I don't know how many customers we have already on the regulatory tariff, but in the liberalized one, I think it's very few. I think certainly we'll have someone, we are trying to minimize those effects. In any case, I think it's going to recover one way or another by the public funds on those ones. I think it's not the relevant numbers what we have in this business.
Okay. Next question is, do you believe the Spanish government may introduce the 1.2% revenue tax? How can you legally fight it?
Well, I think that is already now in the parliament. We don't know what is going to happen, but we will see. If it finally is already applied, we will do as always we have already done to defend the interest of the shareholder. Certainly we go to the court. I think that it goes against the European directives. The European directives is clearly stating that it is for a tax for extra profits, which is not the case in the case of Spain. I think it's talking about extra profit, it's not talking about revenues. I think so do our lawyers will work very well as always for already defending the interest of the shareholder. Which is a no-no.
We see this is something which is not already in line with what is being addressed by the European Commission. Saying that, I think we feel that we have to try, everybody, to do our best, I think, and we are doing our best. I think we are already paying EUR 7.8 billion taxes in the country at present, which more than half is already paid in Spain. My point is with this, the EUR 3.7 billion or EUR 3.8 billion we pay in Spain, that money is already helping a lot to those more vulnerable. I think this one, an extra thing on that one, well, I think it's. I can't see the reason why, because we are very well paying in this taxation in this particular moment.
Next question is, you are showing a FFO debt ratio on 23.4% in your slides. Could you provide the information on a like for like definition to the one that S&P looks at? Are you comfortable with the 17% threshold that S&P looks at for your current credit rating?
Pepe?
Yeah. The equivalent that we have for S&P is 19.7%. There is this year a difference in the cash flow recognition. But let me point that S&P for the BBB+, the range that it gives is 20%-17%. Today, we are at 19.7%, improving from 19.3% of last year, and we are in the top range of the range, so we are very, very comfortable with this ratio.
Last question, regarding the gas sector or the gas industry in Spain. You seem to be discontinuing your gas supply activity in Spain. Is this view correct?
I think all, you know, then we sold a few years ago all our take-or-pay contracts of gas. I think we have not already, let's say, risk. As far as I know the colleagues have already collateralized or similar because we have not this type of contracts. Gas for us is already, in the case of Spain is minimum. And the gas, as I mentioned, we are using our combined-cycle gas. We are only just buying when we need already for generating electricity. But I think we are, as I insist on that one, we are focused on electricity, we are focused on renewables, we are focused on networks.
That business is networks worldwide, and second is renewable, and the gas is already, in the case of Europe, is a very marginal activity.
Okay. Now, please let me now give the floor to Mr. Galán to conclude this event.
Thank you very much for taking part of this conference call. I would like to, as always, remind that our investor people, investor relation will be available to further information you may require. In any case, I think we will again invite you for attending our investor day, capital market day on the ninth of November in London, and we can already share with you our projection for the next few years. Thank you very much and see you soon in London. Thank you