MRG’s capital expenditure on projects undertaken throughout the period came to €17.1 million. This 19% year-on-year decrease was due to lower investment in network sectorization projects.

The key points of Madrileña’s capital expenditure outlays in 2014 are classifiable into three main areas:

Expansion

MRG’s strategy focuses on growing its distribution network by connecting new consumers within its existing territory and expanding into adjoining municipal districts.

In line with this approach, MRG invested a total of €14.5 million in expanding its distribution networks, 18% up year-on-year.

In addition to sustained expansion in the company’s consolidated territories, we made a significant capex effort to create new distribution networks in neighboring municipalities such as El Molar, Villanueva de la Cañada, San Lorenzo del Escorial and Griñón, enabling us to establish a robust platform to capture new connection points in future financial periods.

Network Sectorization

This project, designed to achieve technical separation between MRG’s distribution networks from Gas Natural Fenosa’s and connection to primary transport networks, accounted for capital expenditure of €1.1 million during the period.

Other projects

Other highlights included our investments in projects to develop information systems and technical improvements in the company’s other areas.