Fuel prices at ports 2025: settlement for generators in island territories

Key data

Electricity generation companies in non-peninsular territories now have the reference prices that will determine how much they will receive for their fuel costs in the first half of 2025. The Resolution of 27 March 2026 from the General Directorate of Energy Policy and Mines sets the port prices of fuel oil, diesel oil, gasoil and coal applicable to generation groups in the Canary Islands, Balearic Islands, Ceuta and Melilla for the settlement of that period.

This publication activates the final settlement process by the CNMC. For holders of generation facilities in these territories, knowing these prices is the first step to anticipate the amount they will receive or to detect possible discrepancies with their own consumption records.

What does this regulation establish?

The resolution establishes the reference prices at port of four types of fuel used by electricity generation groups in the isolated electrical systems of Spanish non-peninsular territories:

These prices are those that the regulator recognizes as fuel costs for the purpose of calculating generator remuneration. They are not free market prices: they are regulated reference prices, determined from actual market data for the period, which serve as the basis for the final settlement of the first half of 2025.

The retroactive setting of these prices is the usual procedure in this regime. The regulator waits to have actual fuel market data during the period to accurately calculate recognized costs. This means that generation companies have already operated during the first half of 2025 without knowing the final price that would be recognized to them: now, with this resolution, that price is fixed and the CNMC can proceed with the settlement.

Economic and operational impact

The economic impact of this resolution materializes at two levels:

For generation companies: The prices set directly determine the amount of remuneration for fuel costs that they will receive from the CNMC settlement corresponding to the first half of 2025. If the reference price set is lower than the actual acquisition cost borne by the company, the difference is not covered by the regulated system. If it is higher, the company obtains a positive margin in that component.

For the island electrical system: The additional costs of generating electricity in isolated systems with imported fuels are compensated through the extra cost fund. This fund covers the difference between the actual cost of generation in non-peninsular territories and the price they would pay if they were connected to the peninsular system. The prices set in this resolution are one of the elements that determine the total volume of that extra cost.

For end consumers: The impact is indirect. The extra cost fund is financed through the national electrical system, so it is not directly passed on to the island consumer's bill, although it does influence the overall cost of the Spanish electrical system.

Who does it affect?

• Companies holding generation groups in the Canary Islands that use fuel oil, diesel oil, gasoil or coal as the main or backup fuel.
• Companies holding generation groups in the Balearic Islands in ordinary or special regime.
• Companies holding generation facilities in Ceuta and Melilla, both in ordinary and special regime.
• Financial and regulatory departments of these companies, responsible for verifying CNMC settlements and detecting possible discrepancies.
• Energy advisors and consultants who manage the regulatory relationship of these companies with the CNMC.

It does not directly affect generation companies in the peninsular system or renewable energy facilities that do not use these fuels as the main source of generation.

Practical example

A company holding a diesel generation group in the Canary Islands that operated during the first half of 2025 will receive its CNMC settlement calculated on the reference price at port of diesel oil set in this resolution.

Suppose that company acquired diesel oil during the first half of 2025 at an average price slightly higher than the reference price set by the resolution. In that case, the cost recognized by the regulator would be lower than the actual cost borne, and the company would assume that difference without regulatory compensation. Conversely, if the actual acquisition price was lower than the reference price, the company would obtain a positive margin in that settlement component.

This mechanism makes efficient management of fuel purchases—negotiating acquisition prices below the regulated reference price—a direct profitability lever for generation companies in these territories.

What should companies do now?

1. Locate and review fuel consumption records for the first half of 2025. Verify that the volumes and types of fuel consumed are correctly declared to the CNMC, as they are the basis on which the reference prices set will be applied.
2. Compare the reference price set with the actual acquisition cost borne. This comparison allows you to anticipate whether the settlement will be favorable or unfavorable for the company and to assess the economic impact before receiving the final settlement.
3. Review the CNMC settlement when issued. Verify that the prices applied by the CNMC match those set in this resolution and that the fuel volumes recognized are correct.
4. Identify possible discrepancies and prepare supporting documentation. If there are differences between the declared data and those recognized in the settlement, gather the purchase and consumption documentation for the period to be able to file objections within the deadline.
5. Transfer the data to financial planning. Use the prices set to update the forecasts of regulated income for the first half of 2025 and adjust cash flow projections if the settlement has not yet been received.