Good morning, ladies and gentlemen. We'll now be beginning the presentation of our 2022 results, welcoming everyone joining us either by phone or online. With us, we have Beatriz Corredor, the Chairwoman, Roberto García Merino, CEO, and Emilio Cerezo, Corporate CFO. I'm going to hand over to our chair, Beatriz Corredor.
Good morning, everyone. Welcome, thank you for coming to this presentation. Yet again, this year, we're able to share with you the major milestones we had in 2022, also we'll be looking at Red Eléctrica's performance and the results obtained in a year, not without its challenges. Last year, we continued to fulfill our purpose, guaranteeing the supply of essential services to society, companies, families, and public services, maintaining our commitment to sustainability, which informs all of Red Eléctrica's activity and that of its subsidiaries, Red Eléctrica, Hispasat, Reintel, Redinter, and our technology platform, Elewit.
We'll begin our presentation on this point and then detail the highlights and results of 2022 in the context of a complicated global environment with tremendous volatility and uncertainty. We will conclude the presentation with our 2023 forecast and a review of the progress made towards fulfilling the objectives of the current 2021-2025 strategy plan. At the end, we'll have a Q&A session after the presentation to address any questions you might have. Now let's just have a look at our sustainable commitment. We live in an age of global challenges, climate emergency, progressive de-globalization, increased inequality, and demographic challenge, amongst others, compounded in 2022 by the war in Ukraine, which was invaded exactly a year ago, last 24th of February, Friday. Its most tragic consequence is the loss of human life and the violation of fundamental rights, naturally.
It's also had major adverse effects on international geopolitics, inflationary tensions, supply chain issues, and exposing a vulnerable European energy system. One year later, Europe is demonstrating that, as opposed to what happened in the 2008 financial crisis, it does understand that the only way forward is by forming a united front and committing to speeding up our transition in energy. Spain leads the energy debate in Europe for good reasons. Look, for example, at the results of the Iberian mechanism. According to the latest ministry data, provided savings to the wholesale electricity market of nearly EUR 5 billion as of the 31st of January. In January, Spain's wholesale prices were 59% lower than in Italy, 46% lower than in France, and 39% lower than in Germany, including the adjustment cost received by gas plants.
In this context, Red Eléctrica's function in 2022 reflected its deep commitment to public service by fulfilling its purpose as a manager of essential infrastructures, ensuring electricity supply and connectivity, promoting sustainable criteria and a fair ecological transition, enhancing the value of our neutrality, and contributing to social and territorial cohesion. The digital transformation and the energy transition are the two central concepts here. In addition to gender equality and social and territorial cohesion, on which the National Recovery, Transformation and Resilience Plan is based, Spain channels aid from the Next Generation package through this plan, and Red Eléctrica plays a pivotal role in ensuring both concepts are executed effectively, and we're succeeding. In the past year, many voices have warned of threats to the security of the electricity supply, hypothetical blackout risks, outages, and such like.
We always responded the same way, guaranteeing the security of the supply in Spain, 'cause we have the most balanced and most resilient electricity system in Europe, both in terms of supply sources and system operation. The best in Europe, possibly in the world, given Red Eléctrica's critical infrastructures, including its control center and renewable energy coordination center and transmission network. The facts speak for themselves. We have achieved major milestones in 2022, reaching record levels of wind and photovoltaic output, laying the groundwork for an electricity grid with more than 74% renewable generation by 2030. We did so in a year of adverse weather conditions, characterized by the absence of wind and rain, when the most severe drought in decades cut hydro generation by nearly 40%.
All this was possible, thanks to the development of a generation system in our country, which in 2022 incorporated an additional 5.7 gigawatts of renewables, specifically 1.4 gigawatts of wind power and 4.3 gigawatts of PV power to close the year with renewable energy capacity of 58% of total installed capacity in the country. Today, that figure is even higher. We are adding more wind as well. In 2022, the Spanish electricity system reversed its propensity to import of the last six years, obtaining net exports of more than 20,000 gigawatt hours.
This shift is attributable to an increase throughout the year in trade exports, mainly with France, due to problems it had with its nuclear fleet, and with Portugal, due to the effects of drought on its generation mix, where we put in 2% and 35% of their respective demand. This demonstrates the enormous need for Europe of interconnected systems for Spain's renewable energy supply and for urgently accelerating international interconnections to assist in decarbonization efforts. We are the driver of renewable energy in Europe. We are being called upon to do even more. It's an opportunity we must take advantage of, one that requires investment, public-private partnerships, and multilateral agreements. In this new context of renewables, where the electricity flows have seen a shifting trend over recent years, the role of system operator is even more critical.
Obligations have increased significantly, not just domestically, but also throughout Europe. The integration of balancing and adjustment platforms is one example of these new European obligations, working with the interconnection between Moldova and Ukraine in July 2022. Domestically, the new measurement and settlement obligations stem from the increase in activity volumes resulting from new access requests, as well as an uptick in the number of market players. Consistent with European recommendations to contain energy consumption and provide flexibility to electricity grid operations at specific times, Red Eléctrica, as system operator, held its first active demand response auction, a measure included in the plus energy security plan approved by the Council of Ministers. This auction provided the mainland electricity system with nearly 500 megawatts of active demand response to balance generation and demand at specific moments of resource scarcity when it's necessary to adjust demand to production.
Regarding the fact that climate change is now a reality, not just a theory, we can ensure the growing need to promote the development of other technologies like offshore wind, storage, green hydrogen, and self-supply as fundamental vectors to advance the energy transition, which will require an adequate framework parallel to the one implemented by the European Union. It's also essential to continue developing the transmission grid by assuming a leading role in innovation and sustainability, and thus achieving a more intelligent network, as we have already been doing in Red Eléctrica.
Roberto García Merino will later give you an account of the progress made on the electricity transmission network planning approved by the government in March last year to ensure an available transmission grid and facilitate the connection of renewables at all distributed points with a target at the end of the period of 67% renewable source generation. These are significant advances in the handling and execution of strategic planning projects, which are essential to the advancement of the ecological transition, like those made in the development of interconnections between the electricity grids of the Balearic Islands and the Canary Islands, the mainland system and Ceuta, with France through the Bay of Biscay and with Portugal through the north. We've commissioned the Caparacena-Baza electricity axis in the province of Granada. We speeded up the processing of the Tierra Estella axis in Navarra, to name just a few.
Beyond planning, we've continued to make progress on the construction of the Salto de Chira plant in Gran Canaria, which is essential to the system operation in the Canary Islands. We've also made progress in our role as transport and system operator, and I'd like to briefly address the progress of the rest of our subsidiaries. We achieved some major milestones in international business, including the recent commissioning in Peru and Chile and the acquisition of five electricity transmission concessions in Brazil, doubling our installations in the country. In satellite activity, Hispasat embarked on a new era of space communications last February 7th, when it launched Amazonas Nexus, a high-performance geostationary satellite targeting the air and maritime mobility market, which will provide quality internet access in places as remote as Greenland and the Amazon jungle and lend support to the United States Department of Defense.
That same day, when we did the launch, we learned about a provisional resolution from the Ministry of Economic Affairs and Digital Transformation, awarding Hispasat the tender to provide broadband services to rural Spain via a connection of at least 100 Mbps at a price of EUR 35 a month for end users. This is a giant step towards reducing the digital gap between urban and rural areas. This is a challenge in which another of our subsidiaries, Reintel, will play a pivotal role. Reintel has strengthened its position in the telecom sector by forming a strategic alliance with KKR as a long-term minority shareholder. How are we actually carrying out our activity in both the electricity and telecom fields? It's common knowledge that Redeia maintains a strategic and cross-cutting commitment to sustainability with a long-term vision.
In 2022, we took major strides forward in this long-distance race, first designing a new work methodology to achieve what we call a social license to operate, which involves working hand in hand with the communities where our facilities operate, listening to the needs and sensitivities of local residents, their representatives and institutions, in order to design an infrastructure tailored to their social and economic reality and improve their well-being. This approach is also featured in the new sustainability plan approved for 2023 to 2025, which defines the latest intermediate and managerial targets, perfectly aligned with our current strategy plan and the 2030 sustainable development goals. The intermediate targets established for 2025 are linked to our sustainable commitment priorities. In this respect, they entail, first of all, stricter targets for decarbonizing the economy in line with the Science Based Targets initiative.
We'll reduce Scope one and Scope two emissions 30% by 2025, we'll encourage two-thirds of our suppliers to approve reduction targets validated by science. We will offset 100% of Scope one emissions already by this year, 2023. We'll also increase the share of renewables in the Spanish power grid by ensuring renewable energy represents more than 60% of the electricity generation mix. These objectives are associated to our commitment to a responsible, sustainable value chain, where we maintain our commitment to protecting vegetation and combating deforestation in 100% of our investment projects and ensuring that at least 10 suppliers with the greatest impact on the transmission network have circularity, LCA, climate change, security, diversity, and biodiversity criteria. Objectives that also contribute to environmental development, reaffirming our leadership in gender equality.
By 2025, women will represent 38% of the management team, the 50/50 makeup of the board of directors will remain in place, and we will reduce the digital gap here in Spain by deploying 100 Mbps with satellite connectivity throughout Spain. Lastly, objectives associated with anticipation and action for change. We'll promote a corporate culture of innovation and flexibility that allows the company to identify opportunities and address future challenges. Here, we're committed to implementing six high-impact technological solutions that will allow further development of the energy transition and telecommunications development. To carry out all this, we'll rely on our sustainable funding sources, which will account for 60% of our needs in 2025 and 100% in 2030.
Sustainability in Redeia incorporates a driver to promote progress and well-being in the regions where we operate, and our performance is recognized by the main sustainability indices where the group operates. Once again, we are ranked among the industry leaders. It's worth noting the company's outstanding position on the world's most reputable sustainability indices. For example, the Dow Jones Sustainability Index, where we obtained 86 out of 100 points, where the sector average is around 40, and also Sustainalytics, with similar metrics, and the recognition in the 2023 The Sustainability Yearbook, which includes Redeia amongst the most sustainability conscious areas in the world.
Apart from our presence on these indices, we obtained the EFQM 700 Seal, making us one of only four Spanish companies to receive maximum recognition from the Excellence in Management Club, which honored Redeia for putting excellence, innovation, and sustainability at the forefront of our strategy, as well as our transparency-based governance model. In light of all this, I want to close by reiterating Redeia's fundamental role in action plans that position us as the backbone of a decarbonized energy system, providing neutral access to the power grid and to telecommunications networks, reducing the digital divide, and contributing to the innovation and development of society. I'll now hand the floor over to the company's CEO, Roberto García Merino, who will review the 2022 results, the outlook for 2023, and the progress of our strategy plan. Roberto?
Thank you so much, Presidenta. We will discuss the most significant developments during the period and the results for this year. In 2022, we saw considerable advancement in the energy transition in Spain and intense activity as TSO, guaranteeing the electricity supply and facilitating the system's integration of renewable energies. On an operating level, we continued to provide high levels of quality service to the electricity system with a transmission network availability index of 98.2 nationwide. We also started the construction of the Chira-Soria project, and annual investments accelerated to EUR 530 million, up 25% from 2021. This is a key milestone in the achievement of our medium and long-term goals. With regard to regulations, several developments were approved that directly affect our activity as TSO.
These include the following: the streamlining of transmission infrastructure execution processes through Royal Decree-Laws, progress in the processing of singular projects, and the inclusion of urgent and strategic actions to further the energy transition. Also noteworthy is the approval of the remuneration model for the Salto de Chira pumping station, which for the first time includes recognition of work in progress. Last year, the remuneration framework for the system operation was also updated for the period 2023 to 2025, increasing remuneration to EUR 83 million per year and recognizing the new functions assigned to this activity, both nationwide and throughout Europe. Recently, the definitive orders for remunerating electricity transmission activity were published recently, setting the tariffs for the 2016 to 2019 period, which had been provisionally recognized. On a financial level, we must highlight our first issue of green hybrid bonds.
The amount is EUR 500 million and a 4.625% coupon, whose funds will strengthen our capital structure, so we can continue to address the 2021-2026 electricity planning investments scheduled. This emission, apart from being aligned with our strategic plan, is also consistent with Redeia's green finance framework, thus consolidating our commitment to green finance, an area in which we have been a benchmark since 2017. 2022 was also a year of consolidation for our diversification businesses. This is evident in the milestones achieved in the international businesses, where the Tintaya-Azángaro in Peru and the Nuevo Pozo Almonte-Parinacota Chile transmission lines were recently commissioned.
We especially underscore the importance of five concessions totaling more than 2,400 kilometers of transmission lines in Brazil, which practically has doubled the size of our local subsidiary. Regarding satellite activity, we recently launched the new Amazonas Nexus satellite mentioned before. This is a satellite with a very high percentage of capacity already contracted, and we expect the sat will reach full operating capacity by the end of summer. The impact on results will be fully apparent in 2024. Let me just remind you that last August, Hispasat acquired the service provider Axess Networks, allowing it to verticalize in the satellite sector value chain.
Finally, the Ministry of Economic Affairs and Digital Transformation, as the president had just mentioned, published a provisional resolution awarding Hispasat the tender of more than EUR 76 million, aiming to guarantee at least 100 Mbps of broadband access to rural, remote, and sparsely populated areas in an effort to bridge the digital gap. Hispasat was, in fact, the only awardee. I close with our fiber optic business, where in the past year we sold a 49% minority stake, allowing the company to achieve multiple objectives. First, enhancing the value of strategic assets. Second, incorporating a partner such as KKR that will promote the development of these assets and highlight their upside potential. Third, finally, obtaining significant cash flow, which has allowed us to enhance the strength of our balance sheet and our dividend policy.
Let's look at the key figures for 2022, which remain stable despite a challenging context. We're facing a very challenging context, and I'll describe the specifics now. I'd like to highlight that on February 27th, the board of directors submitted to the general shareholders meeting the distribution of a complimentary dividend charged against 2022 results of EUR 0.7273 per share payable on July 3, and thus fulfilling our market commitments. As to results, we can say that generally speaking, 2022 was a positive year in which the group's fee figures in recurring terms surpassed those of the previous year. We should note that 2022 closes including a series of non-recurring adjustments that negatively affect the year's results.
Regarding revenues, after learning the definitive rates of 2016, 2019 transmission activities, we posted a difference of EUR 35 million between the final remuneration and the remuneration submitted for public disclosure in November 2021, which is the figure included in our financial statements. As to operating expenses, the exceptional impact of the maintenance plan on critical assets adds a provision linked to the negotiations of various labor agreements at group companies is worth noting. These non-recurring effects are virtually fully offset by higher contributions from the international and satellite businesses in terms of EBITDA, meaning that the close of 2022 is in line with that of 2021. More specifically, the favorable evolution of international business with an EBITDA growth of nearly 88.0% has allowed the regulated business, both in Spain and internationally, to represent more than 82% of the group's EBITDA.
If we analyze revenue trends by business line, the contribution of the diversification businesses is particularly noteworthy, with organic and inorganic performance boosting revenue by nearly EUR 100 million relative to the previous year. This growth was curtailed by regulated business in Spain because of tariff adjustments as previously described. Omitting this particular adjustment, revenue from TSO activity would have increased by EUR 24 million. It is also worth noting the favorable evolution of revenue from the international business, which climbed EUR 47 million, due mainly to the following: increased organic activity in Chile, Peru, and Brazil, with a commissioning of Redes Nor and Redes Nor 2, as well as Argo II and Argo III in Brazil, and the acquisition of Rialma, known as Argo 4, and the five recently acquired lines in Brazil.
Likewise, the telecoms business has contributed to the group's positive revenue trends via Hispasat and Reintel alike. The satellite business grew by EUR 41 million, driven by greater commercial activity in the sector. Effects from a full year of acquisitions in Peru carried out the previous year and the favorable exchange rates. Also fiber optic revenue has increased due to the positive effect of linking the main contracts to inflation. Now let's turn to the evolution of operating costs. For clarification purposes, we will break the increase down by comparable and non-comparable costs. Non-comparable operating costs grew by EUR 147 million and focus on four key concepts. First, the already announced rollout of the critical asset maintenance plan, the completion of which is scheduled for 2023, this fiscal year. Second, other expenses associated with the changing of perimeter and the group's new business lines.
Basically, Hispasat's new satellite business in Peru, which was established in May 2021, and the acquisition of Axess in August 2022. Third, costs associated with the construction of the Salto de Chira pumping station in Gran Canaria, totaling EUR 59.6 million. This is because treatment of these assets under a concession regime, according to accounting regulation, requires that construction costs and revenue be posted on the income statement according to the degree of progress, thus having a net impact on EBITDA by remunerating work in progress, which in 2022 reached EUR 4.7 million. Finally, as a result of negotiating different collective agreements at Redeia, a provision has been made in response to an early retirement plan that entails additional non-recurrent costs to the tune of EUR 16.6 million.
As to comparable operating costs for the year, the year-on-year increase is contained at 3.4% despite high levels of inflation throughout 2022. This slight increase stems from the ongoing pursuit of efficiency in our activities, as well as from a strategy initiated some years ago to establish medium and long-term agreements with suppliers, which allow for an impact from rising prices to be contained. EBITDA in 2022 was marked by several non-recurring impacts on TSO activity in Spain. Revenues affected by the aforementioned adjustments in transmission remuneration and the evolution of costs, including operation and maintenance expenses associated in large part with the critical asset special maintenance program, which are virtually offset by the favorable evolution of the group's remaining business lines.
Excluding the impact of the rate adjustment for the regulated business in Spain, recurring EBITDA would have increased 1.8% to EUR 1,526 million. Net profit for the period reached EUR 665 million, down 2.3% from 2021. Lower EBITDA and the evolution of amortizations, which grew by EUR 23 million due mainly to satellite activity and the increase in minority interest resulting from the sale of a stake in Reintel, are partially offset by improved net finance costs on the one hand and by a lower effective income tax rate, which is the result of higher contributions to the earnings of the companies valued under the equity method, post of net of taxes and the accounting of tax deductions for R&D and I linked to the investment in the Amazonas Nexus satellite.
Thus, it is worth noting that in a context of historic rate hikes, Redeia's financial structure has allowed it to absorb the impact of the increases, yielding an uptick in net finance costs of EUR 12 million. In recurring terms, we would obtain a net profit of EUR 691 million, which is a 1.5% increase from the previous year, thus demonstrating effective management over the course of a very complicated 2022. As to investments, total investment volume grew by nearly 88%. This bolstered by considerable progress in national projects and diversification activities alike. The amount is EUR 1.03 billion.
Of these over EUR 1 billion, we must differentiate between organic investment to the tune of EUR 708 million, and the organic investments to the tune of EUR 325 million, which primarily include the acquisition of Axess Networks for EUR 104 million, and the five concessions acquired in Brazil through Argo amounting to EUR 201 million. With regard organic investments, we would underscore the TSO investment, which maintained a positive trend and exceeded investment by 25% at year-end to reach EUR 532 million, with a major boost from the special plan to accelerate investment in the transmission network.
Thus it is important to highlight the progress made on island interconnection projects, including Ibiza, Formentera, and the underwater Lanzarote-Fuerteventura link, and the start of work on the pumping station known as Chira-Soria, which is divided into two main phases, a desalinated water production plant first, and second, a hydroelectric power station located near the dams. Now turning to international activity, we have put into commission the 220 kV Tintaya-Azángaro, Tesur 4 transmission line in Peru, and in Chile, the Redenor project went online on September 30. Finally, regarding telecommunications and specifically our satellite activity, the most significant milestone is a recent launch of the new Amazonas Nexus satellite.
Finally, now to conclude this investment chapter, I would like to highlight the fact that close to 80% of the company's organic investments are eligible according to European Taxonomy, thus reinforcing Redeia's commitment to sustainability, which is a key factor in the group's strategy to advance the energy transition. Now, if we turn to an analysis of group's financial position, net debt at year-end was roughly EUR 4.6 billion, which is EUR 1 billion less than in 2021. This considerable decrease attributable to the sale of 49% of Reintel, which amounted to EUR 996 million, as well as the group's health cash flows. Cash flow generated in 2022 has exceeded EUR 1.55 billion, basically due to two factors.
First, a cash flow EUR 1.47 billion from operations and good working capital performance, due largely to higher collections from the transmission tariff as the 2022 tariff continues to be considered provisional. These differences in working capital are expected to reverse over the course of 2023 and 2024. In view of the foregoing and taking into account investments made and the dividends paid out in 2022, net financial debt stood at the end of the fiscal year EUR 4.634 billion. This is at year-end, exhibiting healthy financial ratios and maintaining an active A minus credit rating, S&P and Fitch.
In relation to our financial structure, which is especially relevant considering interest rate trends throughout the year, I want to stress that we maintain a strong position with diversified debt in terms of financing sources with 89% at fixed rate until maturity, with clear predominance of euro over other currencies. Structure has enabled the average cost of debt to stand at 1.62%, which is only basis points above the average cost from the previous year. As regards near future, in the next five years, we will face maturities of approximately EUR 4.1 billion, of which EUR 3.3 billion is covered by our liquidity position. Analyze the close of the 2022 financial year. Let's now discuss the future and cast for 2023.
After two particularly intense years in 2023, we will reach the midway point of the 2021, 2025 strategic plan. Progress thus far leads us to believe that we are on track to meet the objectives of the plan, which we presented to the markets in February 2021. Now looking at 2023, we especially want to underscore the evolution of our TSO investments. After several years in which annual investment hovered around EUR 400 million, this year, as we said, will be a turning point with considerable acceleration in transmission network investment reaching near record levels for the company from the years 2010 and 2011.
The efforts over the last two years to achieve a significant rate of investment can already be seen in specific projects, and we do expect this year to see investments in excess of EUR 700. Increased commissioning, higher remuneration system operator, and the results associated with progress on the pumping station in Gran Canaria, all of which suggest a slight rise in recurring EBITDA relative to 2022. On an international scale, we expect a good year given the increased contribution from recently acquired lines and the latest projects to come online in Peru and Chile, which will have a considerable impact on the business's EBITDA. In the field of telecommunications, the positive contribution of the new Amazonas Nexus satellite in the final months of the year will not fully offset the completion of certain video services in Brazil already planned, but they will be fully offset in 2024.
Finally, let me underscore that in 2023, we expect good performance from fiber optics, given its stable revenue and contractual protection from inflation. Taken together, these factors allow us to estimate a 2023 EBITDA, which will exceed EUR 1.5 billion and net profits in line with the numbers of 2022. Both figures are consistent with the strength and stability of our business lines in a complex macroeconomic environment. To conclude this presentation, let's now address the progress made over the past two years in our strategic plan and where we stand in the achievement of our 2025 objectives.
First, I would like to highlight the efforts made by the group to increase investment in the transmission network, reflected in an increase in investment target for 2021-2025, from the initial EUR 4.4 billion to a figure around EUR 4.8 billion, with a 10% increase in the TSO investment target. This increase is underpinned by the change in the company's investment dynamics, which has led us, for example, to exceed EUR 700 million this year. By 2025 has us believing that our best estimate is to reach a TSO investment volume of around EUR 3.7 billion compared to the EUR 3.35 billion initially announced. Finally, the latest acquisition of five lines in Brazil.
We have completed our organic and inorganic investment target in the international markets. Additionally, we've advanced more than 40% in our investment target in telecommunications activities. Overall investment development is progressing, coming along according to plan, increasing both the pace and volume committed in the case of TSO. We likewise reiterate our financial targets, offering an attractive return to shareholders and maintaining a solid financial structure. I would like to remind you that in 2022, after the successful sale of a minority stake in Reintel, we generated considerable cash flow that allowed us to increase investment in the TSO while maintaining our financial strength. Which in turn enabled us to enhance our dividend policy, ensuring shareholder remuneration of EUR 1 per share for the 2020-2023 period, and at least 0.80 per share for 2024-2025.
This policy is aligned with the company's strategy, which will be very demanding in terms of investments in the coming years. We also continued to base our management on operational and financial efficiency, both maintaining an EBITDA margin of over 77.0% and solvency ratios, net debt EBITDA less than five times, and FFO net debt higher than 15.15%, allowing us to maintain a strong credit rating for the period. In 2023, new instruments have been incorporated, which will provide greater flexibility to the group's financial management in order to guarantee its credit strength. We therefore conclude this presentation having surpassed our investment target for the period, the result of Red Eléctrica's efforts in recent years, and our adaptation to the current climate, offering adequate returns, and a financial structure which is capable of handling our demanding investment plan.
That concludes today's presentations. Thank you very much for your attention. Now we are available to answer questions that you may have. Thank you.
Ladies and gentlemen, if you have questions, please press your asterisk on your touchpad on your phone. The first question is from Javier Suarez from Mediobanca. Please go ahead.
Hello, good morning, everyone, and thanks for this presentation. I got a couple of questions for you above all about the context. The first question has to do with the company's requirements for looking at its capital structure. When the company updated its strategy in 2021, interest rates were quite different. We've seen enormous hikes since then, and the company is continuing to increase its CapEx, maybe in close to EUR 1 billion, going up to 2024, 2025. In this context, the dividend the company is paying out is probably over 80%.
My question for you is, if as a consequence of the higher interest rates, the company feels it should change something in the structure of its balance sheet, maybe including other sources of finance or perhaps having a greater asset rotation. If the different scenario makes you think about the future differently. My second question has to do with inflation. We've seen inflation being kept under control, so not all the inflation we're seeing is being seen in the numbers that Red Eléctrica is reporting. Nonetheless, there is an impact, and regulation doesn't give protection to the company for this. The question is, can you give us an update on any conversations with the government or with your regulator to correct that tariff deficit?
The third thing, looking at the remuneration you get for Chira-Soria, which you've included for the first time as work in progress, do you consider that the debate should be extended to the rest of the assets that Red Eléctrica is investing in? Thank you.
Javier, thank you so very much for those questions. If you will, when we talk about the capital structure, Emilio perhaps can go into more granular answers, the company actually has been focusing on scenarios that do address changes and evolutions. EUR 700 this year, that EUR 1 billion as the cruising speed for 2024, 2025. Ever since we launched a strategic plan, we already contemplated a scenario such as this one. We were talking already back then by about EUR 7 billion. The investment horizon, we did have a clear handle on it, and I think we're proving that we can actually execute. The financial structure that we're working on actually responds to that specific scenario.
We also stated at a given point in time that we were going to be looking at more flexible instruments because we wanted to strengthen our balance, which is, of course, our priority. We want to be sufficiently robust as to actually be able to tackle, without any kind of attention, this in a forward-looking investment plan. I think that yes, our strategy is responding, the strategy that we had in place. I think also that it's fair to say that our financial strategy is relatively conservative. If you see the scenario of these very high hikes that we're seeing as months pass and seeing how our financial costs are growing, as we said, by 10 basis points, well, our long-term vision is what it is. Of course, yes, it...
There is going to be an impact because it's going to be more expensive, funding is, but not outrageously so. We're looking at a prudent approach, a cautious approach with a financial cost which will be limited. I think that this is what allows us to be very, very well poised to be able to deal with the investments that will be necessary in upcoming years. Emilio, perhaps you want to add details. I think that this is a message of stability. We're being preemptive, if you will, and we're very solid. Very solid.
Well, there's not much more I could say, Roberto. Thinking about your question, Javier, indeed, we're not thinking that it will be necessary to have any big change in our funding structure. The instruments we have, the hybrid instruments, are there in the strategy plan in order precisely to tackle the increases in CapEx we had in the plan, and we consider that they do continue to be useful. As for higher interest rates, well, as you said, they have gone up over the recent months in a notable manner. Our financial structure, as you well know, is 90% of our funding is at fixed interest rates. We've also got derivatives which, well hedged to EUR 400 billion.
That all means that really, in this context of higher rates, we feel reasonably protected, despite the fact that we expect in 2023, obviously, that our funding costs will go up. The impact on the bottom line should be pretty limited. Javier, thank you for your question, will allow me to talk about the regulation matters you brought up. Indeed, our regulation, if we compare it with other TSOs in Europe, does have certain shortcomings which could perhaps be improved. We're aware of that. We've intensified our relations with the regulator in recent years. We've been talking to them about how we can move into the next regulatory stage, which will start from 2025. Inflation is one of the issues that we have on the table and also what you said, talking about work in progress.
Work in progress, as you said, is incorporated in the remuneration of the pumping station for Chira-Soria, and it seems to be a good way of starting to move towards the application of this criteria to big projects that we have in the planning period ahead of us, and the future modifications to the plan that we'll have over the forthcoming years. The regulator is a really important relationship for us, and we're dealing with that.
If you allow me now to add something. You talked about the impact of inflation on the remuneration plan. Well, we are protected to the increase in costs that we're witness to over these months, years. As you know, in our facilities, there's always a breakdown of potential deviations regarding perhaps singular projects. Half, if you will, of that potential increase, of course, of our limits, would be a part of that base. Yes, there are protective measures in place. If we think about the upcoming regulatory period, costs and rates, what we are witness to in the past months, years, will have to be included. There's going to be new standards, new parameters for the new regulatory period, yes.
I think it's fair to say that, as the Presidenta says, we have a very, very fluid relationship with the authority, the CNMC, and all of these issues will be taken very much into account forward-looking. Thank you.
Next question from Javier Garrido from JP Morgan. Go ahead, please.
Thank you for answering my questions. The first one is to ask for more color on your funding for this CapEx, which has gone up so much. Your targets that you have for EBITDA haven't really changed since 2015, despite the fact that CapEx has gone up so much. Does that mean that although you're using these hybrid instruments you've re-referred to, you're gonna have more of them? Will you have more of those hybrid instruments, or is there another reason why you should be so optimistic about the generation of cash flow in order that this increase in CapEx won't bring down your ratios? The second question has to do with more details, if you could give us details about the increase in the cost of projects.
I'd like to know if all the increase in CapEx is going to be linked to increases in the cost of projects that you already had scheduled, or are you adding new projects? I think you've got a dynamic portfolio with new projects coming in, old ones going out, but how much comes from each of the different drivers? My 3rd question would be regarding something quite different. In the press, we've seen that some renewable developers are perhaps thinking of establishing complaints, lodging complaints against Red Eléctrica for removing access rights after the resolutions of the channels in the 25th of January, breaching certain regulatory milestones. I'd like to have your opinion about that and to what degree you're protected against such complaints being lodged with respect to the government and the legislation, what your position is.
What's your opinion about possible risk that you could be facing in financial terms, if there is any? Finally, can you update your calendar for the regulatory working capital? Thank you.
Well, thank you very much, Javier, for those questions. If you will, I will give you some information regarding the first two, and then we can go into specifics about the other two. As to the impact and maintenance of financial commitments reached and taking this investment increase into account, please let me go back to when we were building the strategic plan, which was in February 2021. At that point in time, we hadn't had the planning approved. The approval actually dates to about a year ago, and we assumed that scenario, and well, it talked about a potential sale or divestment of Reintel, which was actually less favorable than what was actually achieved last year.
Yes, it is true that the strategic plan has seen an improvement vis-à-vis the final results of the Reintel sale, so the financial position is more comfortable than what we had originally foreseen. It is also true that other business areas are evolving in a more positive way than what originally was forecast, so that also affects cash generation. If we compare those commitments, February 21, to the here and now, even onboarding that additional investment, I have to say that the financial scenario is a little bit more favorable than the one that we had in mind when we launched the strategic plan. As to the increase in our investments, Javier, you're absolutely right. We are in the face of a dynamic and living portfolio, which evolves favorably, thank goodness.
When we talked about this commitment, well, it's a sum total of three different aspects. First, the end result of planning, which onboards some cases looking for more investments than originally estimated, especially when thinking about connection, including renewables. Of course, the speeding up of those processes, internally speaking, the quickening of those projects and the way we go about things to spur on the investment flow also backs this activity and, well, there's the effect of inflation to take into account as well. I think that if we think about this, we could distribute that impact onto third parties. This is global, those EUR 350 million that we talked about. We talk about new assets, new needs for the connection of renewables, the impact of the internal processes within the company, and the impact of inflation.
I think that perhaps, Presidenta, you could add something. Yes, the point of view of the system operator, and Emilio, if you want also to make a reference.
Okay, thank you, Javier. Yes, the system operator. Managing the complement of the milestones established in the legislation about access in connection to transmission grids, there's standards which don't depend on any discretionary decision. The rights that...
Could disappear as these milestones are met, won't depend, in any case, on any decision of the operator. It's the direct consequence of the expiry of the standards. What we did was make all the environmental impact declarations included in the 25th of January, with the deadline which was established to get further documentation under this procedure. Everything is well guaranteed. One had to be able to prove the milestones, and if one can't, then for legal reasons, the obligations wouldn't be there, not because of the operator doing anything. All we're doing is complying with the law. As a consequence, we're not concerned about possible legal suits taken against us. In the operation of what we are doing in the market, we are complying with all the standards. That's recognized.
The calculation we have as an operator is that over 85% of all declarations of environmental impact have been managed, and before the 25th of January, and they've been accepted, and we think that this is the percentage that will be established. Thank you. Talking about the expected working capital, approximately? Well, we've received about EUR 600 million, more than the revenues scheduled, because as you know, we're using provisional transmission tariffs. Over EUR 100 million have already been returned to the system in February, and the remaining amounts will depend on what is finally published with the final tariffs for 2020, 2021 and 2022. With the three final settlements coming out this year, we'll be able to return all of those EUR 600 million that I mentioned before in 2022. No, sorry, 2023, I mean.
At the end of 2022, we've received, through the system, other items with capacity auctions and such like, which we'll also have to return this year. That has meant that our net financial debt at the end of 2022 was artificially low. All in all, the working capital will obviously go down. Sorry, no, it will go up. We'll have to make these payments in 2023, and there will be, yes, a significant increase.
The next question comes from José Luis from Barclays. Go ahead, please.
Yes, good morning. A couple of questions. First of all, could you clarify something? You talked about 2023 with drops in line with those of 2022 in net profit. I'd like to know if you're talking about adjusted net profit, that 691 of 2022 or the 667 that you reported. Secondly, I wanted to know about the provision you have for restructuring the EUR 16 billion. What's the effect on the reduction of costs? Finally, given the answer you gave to the previous question, could you give us an idea of your final net financial debt at the end of 2023?
Well, perfect. Thank you so much, José Luis. Let me quickly take these. When you talk about the net profits, we are talking about EUR 667. That would be after minority. That's net operating profit. As to restructuring, it's EUR 16. What we're trying to do here is progress. We're trying to adapt that measure. We're trying to ensure that we onboard new talent, that we streamline our payroll. With regards to the agreement, what we want to do is stabilize wage increases within the scope of the plan and perhaps even a little bit more than that. What we're trying to agreeing with the different companies is the pathway to an increase to the tune of approximately 2% per year for upcoming years.
With a readjustment formula in place, this has been designed for 2027, which will partially recognize a possible deviation that there might be vis-à-vis inflation. I think that these measures are allowing us to stabilize the wage increases. Again, I repeat, it's approximately 2%, and that is the formula that we have studied, which will bring us all the way to 2027. Finally, you also addressed the debt, the financial debt. As Emilio, our CFO said, this has been a special year because of the impact. We do believe that at the end of the fiscal year, 2023, we will be at about EUR 5.4 billion-EUR 5.5 billion net financial debt. Remember, 2023 is going to be an intense year in terms of investments. It's approximately EUR 1 billion in investments that we're looking to in 2023.
Roberto, apart from that EUR 400
We've also got the hybrid for EUR 500 million that we issued recently. Given the international accounting standards, is posted as part of our net assets. The rating we got from the agencies for the hybrid is 50% equity and 50% debt.
Next question from Fernando Lafuente from Alantra. Go ahead, please.
Hello, how are you? I've got three questions, please. The first is about some comments you made about regulatory protection and such like in the future revisions for the next period. I'd like to know how you see the process. I imagine there's dialogue with the CNMC regarding the review of the regulated return, that 5.58. With the CNMC, what happened with potential rises in that? Can you talk about the adjustment for the free 10-year bond? We know that you had an adjustment for quantitative easing, now are you discussing something similar with the CNMC? In this context, with the inflation that you referred to before, what other formulae that you're using, what might you use, quite apart from what you already have in the system at the end of each period, to bring in this inflation adjustment to return rates?
Another thing is a regulatory matter about the tariff order approved by the Ministry for 2016 to 2019. I've seen the draft, do you agree that the order should bring it down? Do you think that there's still room for improvement, that the Ministry might change it and make it slightly better? The sale of assets. You talked about potential operations like Reintel, doing it with an asset which isn't related to transmission here in Spain, or maybe Hispasat. I mean, the performance of Hispasat is going better than you had expected. It's very sound performance. Would now be the time to think about the auction, about maybe putting more money into it, or have you decided not to for the moment?
Well, Fernando, thank you very much for these questions. Yes. I have to say that the regulatory revision is priority for us. Of course, we do have a framework which is pretty well stable until 2025, but we are working now and will continue to work in preparation for the new regulatory assessment. I would say that there are two fundamental aspects that we need to take into account that will keep us busy with the authorities, with the regulators, CNMC. We have an excellent working relationship. I think that first, what we need to do is converge and just carry out practices that are more common in Europe. There are concepts that are not included in our regulations, which are included in other European countries, such as a potential adjustment for inflation and for the year underway.
This happens in Europe and then also, remunerations for work in progress. That's been addressed. In the case of Chira-Soria, that's already been onboarded. Why not? We could think about this for other projects in our transmission network. We have the effect of N+2. In our case, that is unique in European terms, and we believe that in a scenario of convergence with other regulatory frameworks, we believe that this is something that should actually land. Those are the three aspects. Something else which is also, I think, important is to think about that possible tax. I think that what we've seen this past year has all of us, including the regulator, understand that the framework was prepared for periods of relative stability. What we have seen this year has been going.
rates going from 0% to 3%, 4%, regulatory models were just simply not prepared for that, not in our case. looking forward to other models, other processes, I think that we should analyze with the regulator in a prospective manner. In other words, look to the past and see that for moments such as these, it's not worked. we need to have a very nimble, a very flexible process in place so that we can deal with increases, cost increases such as this year, or increases in rates, which in a period such as ours, five to six years forward-looking, we have to, we have to agree that they're not fully included. I think, Fernando, that we have a good working relationship with the regulator, with the CNMC.
We work with them, we analyze, we share with them, we talk about the new model with them, perhaps more especially, understand with the authority that this situation right now is one that can only be described as volatile in terms of interest rates and in terms of investments, of course. That's what I would keep uppermost in mind, that convergence in regulatory terms, that's what I would keep in mind. As to a possible rotation of assets, well, we've always said that
In telecommunications and international alike, we have stakes that in some companies that we're very happy with. We've seen that the results have been good in Hispasat and international. We're always open, of course, to studying potential alternatives that will generate value for the group. That, of course, is an absolute given. I have to say that Hispasat-wise, international-wise, the dynamics are good. Now, if we were to find a potential strategic partner that would contribute relevantly to Hispasat or to international, of course, we would study that. If it's a value proposition for the group, we would. At this point in time, I have to say that there is no operation, no business, no onboarding of new partners, either in Hispasat or in international either. Fernando, thank you for your questions and what you said about the relationship with the regulator.
For the next regulatory period, apart from what the CEO already talked about with the formulae that we'll have for the financial remuneration parameters, which are already established in the regulation, we do think that we have to talk with them about what kind of regulation we will need to add in order to develop the grid in line with the innovation in systems and the massive increase in having more distributed networks, increasing efficiency, using more renewables, with more smart use of our assets, and making a lot of investment in innovation and new ways of managing and developing our grids, along with very relevant projects, working on the vectors that we've talked about in offshore and wind and green hydrogen, and also working on efficiency. Regulation has to deal with new realities with the more interconnected grid and different kinds of generation.
What you said about the orders published at the end of December in the official gazette about the transmission tariff, well, we appealed in due form and in due time. We haven't yet got to the deadline for these issues to be dealt with, so we're talking to them, and I think they understand, we need a different kind of approach to these assets under the regulation. More questions over the telephone lines? No? We do have questions that have come in through email. Many of them have already been answered anyway, but there are a few left. Arthur Sitbon from Morgan Stanley asked about the impact of our activities with the European Green Industry Plan.
Well, I don't know The European Green Deal, which is supplementary to all of the actions which are being taken in communications and such like with the energy crisis, it supplements the REPowerEU. It's the response the European Commission came up with to the IRA in the States, so that European industry will be at the forefront of sustainability and renewable energy. With this pact, which has greater funding for states to develop elements that are very important in our activity, reinforcing the grid interconnections and the grid efficiency with more renewables and helping the renewable industry in our country, which is already very important with a lot of wind energy as well as PV energy, but also green hydrogen and electrification using used for electrical vehicles, greater use of batteries and heat pumps.
We're looking at the planning, there are certain points already announced by the government in their security plan for the first half of 2023. It should come out and should reinforce certain things for the transmission grid, so that we'll be able to service the industrial projects that have started in Spain, by way of example, the Sagunto battery factory that Volkswagen is setting up, and other industrial initiatives for data processing, for example, and also the Algeciras chemical plant with investment in different kinds of non-contaminating fuels. All of these kinds of things will mean that we'll have to have more investments in the grid. Thank you .
Next question from Manuel Palomo from Exane BNP Paribas, talking about the interconnection with France.
He asks about the increasing costs and how this will be distributed and if you have a timeline as to when it will be commissioned.
The interconnection with France is a very necessary infrastructure to ensure that Europe can meet certain critical targets. It has not just the targets of decarbonization and electrification and consolidation of the interior energy market, but also now, because of the war, the plan for greater energy security and energy independence from fossil fuels and strategic supply. We have to have this infrastructure, unlike other infrastructures in electricity and power in general, has suffered the exponential increases in interest rates and the prices of raw materials and supply chain issues. It's been necessary to review the initial investment budgets in the mixed company we have with Red Eléctrica de España and RTE in France in order to update the investment.
Once we've got the latest bids from the different suppliers and vendors, which are critical for the two cable circuits and the two conversion units. This has already taken place. Enel has already come up with an updated budget. After that, the regulators in France and Spain have tried to update the agreements in distributing the costs and benefits for the two countries affected. This cost-benefit distribution was signed under different market conditions and different conditions of the European electricity plan in 2017. Because of the changes we've referred to, and because of the greater involvement of renewable in covering the European demand for electricity, especially France, the countries and their regulators have decided we needed to readjust the cost-benefit analysis originally done for the interconnection. That was done by the regulators, the CNMC and the CRE in France.
This week, in fact, we're expecting to hear some news about what they've decided, and we'll need that in order to be able to talk to the suppliers about what tenders are being awarded and what conditions we'll have for the commissioning for 2027 for the interconnection. Just to clarify things.
Clarify something regarding interconnection, any modification to the initial budget, as we hear, would not be contemplated in our commitment to increase investment that we've just made public. Should there be any news regarding interconnection with France, we will doubtless have to take another look at that reference. In operational terms, as you know, interconnection Spain-wise has an environmental impact commitment, and if everything is as it should be, we will have advanced physically. We will have progressed physically this year if we follow the lines that we should be following.
Okay. The final questions come from Jorge Alonso from Société Générale. He's got three questions. The performance of Hispasat in the short term, do we estimate any potential impact on the final review of the tariffs for 2020-2022? How do we see new renewable capacity coming online with the concession of these environmental permits that you referred to?
Well, Jorge, thank you very much. I have to say that the evolution of Hispasat is being, frankly, positive. It has been a complicated two years, which are the result of the pandemic, of the restrictions, and so on. I think it's fair to say that the evolution, as you are seeing, is frankly good. In 2022, we've seen a growing EBITDA to the tune of 10%. We've seen strategic operations gel, which are going to be good for the company's future. It's true that launching Amazonas Nexus is going to be a milestone with a capital M. The launch of the satellite has a tremendous commercial importance. At this point in time for the satellite, I have to say that 66 O% of capacity has been sold. This will perhaps change Hispasat's numbers in the upcoming years.
Every month of Amazonas Nexus being there represents some EUR 4 million. It's true that 2023 is going to have a negative impact because of some services which are no longer going to be provided in Brazil. It's true that Amazonas Nexus will launch summer this year, and that will generate an impact if you think about end-of-year results. We will be seeing the impact of Nexus' contribution in 2024, and that is when we will see in terms of EBITDA growth, they will be notable. This year, foreseeably, there will be a slight decrease in EBITDA because of that cancellation of services to be rendered in Brazil, and we'll have to see when Amazonas Nexus kicks in in order to calibrate the impact, and this throughout the year.
As to the potential impact of tariffs 2022, we've estimated what the impact might reasonably be that would result from the change in the criterion, which is what the ministry has taken into account upon studying that adjustment of tariffs for 16 to 19, and that's been contemplated in our provision, which has been included in our financial statements for the year 2022.
The capacity to integrate the new generation in Spain, well, definitely. We've got the approvals from the environmental agency for the 25th of January, and the next milestone is 25th of April, where we'll get the administrative permits for certain projects. The climate plan to 2026 establishes milestones, and the system's already prepared for them in line with the planning that we had already got for the next few years. These new capacities that will be brought into the grid don't alter the snapshot that we have in the PNIEC, which the ministry is rolling out. There probably will be some new items with respect to self-consumption and renewables and some things that just weren't around three, four years back. In this plan, we think that the targets will be met, and there will be additional sources brought in whenever needed.
As we've said during the presentation, the reinforcement of the grid will take place where it's needed, and there will be a review of the available capacity in the different nodes which will be published very soon. Regarding the possible access and communication that could disappear and other nodes which could be used, and we could auction the capacity there. We'll have to look at the details for each of the nodes, and we'll have to wait until the operator publishes this with total transparency as always. Well, we've now finished today's presentation. As always, our investor relations team is here, happy to help you with any questions you might have. Hope to see you soon. Bye.