Natural gas prices 2024 in non-peninsular territories: what changes for generators

Key data

Generation companies operating in Spain's isolated electrical systems—Canary Islands, Balearic Islands, Ceuta and Melilla—have had the official natural gas prices for fiscal year 2024 since 10 April 2026. The Resolution of 27 March 2026 from the General Directorate of Energy Policy and Mines thus closes the final settlement of that fiscal year for generation units located in these territories.

This is not a forward-looking regulation: it regulates past prices to close pending accounts. But its financial impact is real and can translate into significant collections or refunds for the affected companies.

What does this regulation establish?

The resolution sets the prices of natural gas fuel for the year 2024 that will be applied in the final settlement of generation units located in non-peninsular territories. These prices are the key parameter for calculating the recognized costs for generation companies in these systems.

The system operates as follows: generators in non-peninsular territories do not compete in the peninsular electricity market. They receive a specific regulated remuneration that recognizes their actual fuel costs. During the current year, provisional prices are applied. At the close of the fiscal year, the General Directorate sets the final prices and the adjustment is made.

The retroactive setting of prices for 2024 is the standard mechanism of the system to ensure that recognized costs reflect the reality of the gas market during that fiscal year.

Economic and operational impact

The impact of this resolution materializes on two levels:

• Settlement adjustment: If the final natural gas prices for 2024 are higher than the provisional prices applied during the year, generators will receive additional system payments. If they are lower, they must refund amounts already collected.
• Closing the 2024 fiscal year accounts: Affected companies will be able to definitively close their 2024 fiscal year accounts regarding income from regulated fuel remuneration.

Beyond the generators, this resolution has an impact on the overall cost of the national electrical system, which finances the electricity tariff. The costs recognized to non-peninsular generators are transferred to the system and, ultimately, to all electricity consumers through tariff tolls and charges.

The setting of final prices also allows system operators—mainly Red Eléctrica de España—to close the settlement processes for fiscal year 2024 and regularize pending payments between all system agents.

Who does it affect?

• Electricity generation companies using natural gas in the Canary Islands: Generation units operating in the Canary Islands electrical system under regulated remuneration.
• Electricity generation companies using natural gas in the Balearic Islands: Generation units in the Balearic system with specific regulated remuneration.
• Generation companies in Ceuta: Operators of the Ceuta electrical system with natural gas units.
• Generation companies in Melilla: Operators of the Melilla electrical system with natural gas units.
• System operators: Red Eléctrica de España, in its role as system settlement agent, must apply these prices to close 2024 settlements.
• CFOs and financial directors of affected generation companies, who must review the impact on their 2024 fiscal year accounts.

Practical example

A generation company operating a natural gas unit in the Canary Islands has been receiving provisional settlements throughout 2024 calculated with estimated natural gas prices. With the publication of this resolution, the system operator applies the final prices for fiscal year 2024.

If the final price set by the resolution turns out to be higher than the provisional price that was being applied in the monthly 2024 settlements, the generation company is entitled to receive the accumulated difference for all months of the fiscal year. This adjustment can represent a relevant extraordinary income depending on the generation volume and the magnitude of the price difference.

Conversely, if the final price is lower than the provisional, the company will have collected more than it should have during 2024 and must refund the difference to the system in the closing settlement. This scenario can generate an unforeseen cash outflow that should be anticipated.

In both cases, the financial team must compare the final prices now published with the provisional prices that were applied in each monthly 2024 settlement to quantify the exact adjustment.

What should companies do now?

1. Obtain the full text of the resolution: Access BOE-A-2026-8066 and extract the final natural gas prices for 2024 set for each territory.
2. Compare with provisional prices applied: Cross-reference the final prices published with the provisional prices used in each monthly settlement of fiscal year 2024.
3. Quantify the adjustment: Calculate the accumulated difference between provisional and final prices, applied to the volume of natural gas consumed by generation units during 2024.
4. Coordinate with the system operator: Verify with Red Eléctrica de España the schedule and amount of settlement adjustments corresponding to fiscal year 2024.
5. Update 2024 fiscal year accounts: Reflect the adjustment in accounting, whether it represents additional income or a refund to the system.
6. Review financial forecasts: If the adjustment is significant, update cash flow projections and communicate the impact to the company's governing bodies.