Legal Challenge Against Electricity Prices 2025: What Market Agents Must Do

Key data

An electricity market agent has challenged before the National Court the Agreement of January 22, 2026, by which the CNMC published the notation and the average annual price of the daily and intraday market for the year 2025. The case, identified as 4/397/2026, questions the methodology or values published by the CNMC, and its outcome could have direct economic consequences on settlements already made and on future regulated remuneration.

The Resolution of April 6, 2026 does not modify the published prices by itself. Its function is procedural: to notify all possible interested parties so they can appear in the proceedings and defend their positions before the court.

What does this regulation establish?

The resolution has strictly procedural content. The CNMC, as a party to the proceedings, is obligated to summon third parties who may have a legitimate interest in the outcome of the case.

The subject matter of the case is the Agreement of January 22, 2026, by which the CNMC published two fundamental data points for the electricity sector:

• The notation of the daily and intraday market for 2025: technical reference that reflects market behavior throughout the year.
• The average annual price of the daily and intraday market for 2025: reference value used for contract settlement, calculation of regulated remuneration and other sector mechanisms.

The case challenges that agreement, which means that whoever filed it considers that the methodology applied or the resulting values are not correct. The National Court must decide whether the CNMC agreement complies with the law or should be annulled or modified.

While the proceedings are ongoing, the published prices remain valid. Only a favorable court ruling on the case could alter that situation.

Economic and operational impact

The average annual price of the daily and intraday market is not a statistical figure without consequences. It is a reference used directly in:

• Settlement of bilateral contracts and other financial instruments in the electricity sector referenced to market price.
• Regulated remuneration of generation facilities that have recognized specific remuneration linked to market price.
• Other electricity sector mechanisms that use the average annual price as the basis for their calculations.

If the case succeeds and the National Court annuls or modifies the published price, settlements already made with that reference value could be called into question. This would imply recalculations, refunds or additional charges for affected agents, with the consequent impact on cash flow and financial planning.

The risk is not immediate, but it is real: ignoring this proceeding can mean losing the opportunity to defend a relevant economic position before the court.

Who does it affect?

This resolution directly affects all Spanish electricity market agents whose economic activity is linked to the average annual price of the daily and intraday market for 2025. Specifically:

• Electricity retailers with contracts referenced to the 2025 market price.
• Electricity producers with regulated remuneration calculated on the average annual price.
• Distributors and system operators whose regulated income or costs are calculated using that reference price.
• Large industrial consumers with bilateral contracts linked to the daily and intraday market price for 2025.
• Traders and financial agents in the electricity market with open or settled positions in 2025.
• Advisors and law firms specializing in energy regulation representing any of the above.

Practical example

An electricity retailer that in 2025 settled contracts with industrial customers using as reference the average annual price published by the CNMC in the Agreement of January 22, 2026 has a direct interest in the outcome of this case.

If the National Court granted the case and modified the average reference price upward or downward, that retailer could be forced to recalculate settlements already closed. Depending on the volume contracted and the difference between the published price and the one resulting from the judgment, the economic impact could be significant.

For this company, appearing in the proceedings allows it to present its arguments to the court, provide data on how the published price affects it and, if applicable, argue that the CNMC agreement is correct or request a modification that is favorable to it. Not appearing is equivalent to renouncing that possibility.

What should companies do now?

1. Evaluate if you have a legitimate interest: Review whether your contracts, regulated remuneration or 2025 settlements are referenced to the average annual price of the daily and intraday market published by the CNMC on January 22, 2026. If so, you have an interest in the outcome of case 4/397/2026.
2. Check the deadline to appear: The summons resolution establishes a legal deadline for interested parties to appear before the National Court. Identify that deadline urgently, because its expiration permanently closes the possibility of intervening.
3. Contact specialized energy regulation advisory services: Appearing in administrative litigation proceedings before the National Court requires legal representation. Act before the summons deadline expires.
4. Quantify the potential impact: Calculate what volume of contracts or remuneration you have linked to the average 2025 price and what a modification of that price would mean economically. This will help you decide whether intervention in the process is justified.
5. Monitor the progress of the proceedings: Even if you do not appear, follow the evolution of case 4/397/2026 before the National Court. A favorable ruling could affect you even if you have not intervened in the process, especially if it modifies prices that have already been used in settlements.