Key data
| Regulation | Resolution of 29 September 2026, from the CNMC, calculating the balance of the regulatory account of the electricity system operator at the close of 2025 |
|---|---|
| Publication | 5 October 2026 |
| Entry into force | 5 October 2026 |
| Affected parties | Red Eléctrica de España (REE) and electricity market agents |
| Category | Energy |
| Regulatory period analyzed | 2023-2025 |
| Regulatory account allocation | €5,000 million |
| Applicable regulatory framework | CNMC Circular 4/2019 |
| Balance transfer | Regulatory period 2026-2028 |
Red Eléctrica de España requested from the CNMC the recovery of costs incurred in 2025 for an amount significantly higher than the initial allocation of the regulatory account. The Resolution of 29 September 2026, published in the BOE on 5 October 2026, closes the 2025 fiscal year applying criteria of prudence and economic efficiency in accordance with CNMC Circular 4/2019. The result directly conditions REE's remuneration in the following regulatory period.
What does this regulation establish?
The resolution closes the accounting of the regulatory account of the electricity system operator for the 2023-2025 period. This mechanism allows REE to request recovery of extraordinary or unforeseen costs not covered by ordinary regulatory remuneration, provided they are properly justified and validated by the CNMC.
The items analyzed and amounts requested by REE are as follows:
| Item | Amount requested | Description |
|---|---|---|
| External expenses | €8,300,000 | European projects and compliance with national regulations |
| Investments | €475,609 | Additional investments not covered by ordinary remuneration |
| Staffing increases | €2,300,000 | New hires necessary for system operation |
| Higher OPEX | €3,700,000 | Additional operating expenses versus forecast |
The CNMC has reviewed and documentally validated each item applying the criteria of CNMC Circular 4/2019. Specific analysis has been conducted on the costs of European daily and intraday market coupling (SDAC/SIDC), contrasting them with the CACM Cost Report 2024, the European benchmarking reference for this type of costs.
The resulting balance—whether surplus (if validated costs are lower than the allocation) or deficit (if they exceed it)—is automatically transferred to the 2026-2028 regulatory period, where it will adjust REE's future remuneration.
Economic and operational impact
The regulatory account mechanism acts as a deferred compensation system: validated costs exceeding the €5,000 million allocation generate a deficit that REE will recover in the following period; if validated costs are lower, the surplus reduces future remuneration.
The total costs requested by REE amount to more than €14.7 million (summing the four items), against an allocation of €5 million. This implies that, if the CNMC validates all requested amounts, there would be a deficit of more than €9.7 million that would be transferred to 2026-2028.
The consequences for market agents are direct: any deficit transferred to the following regulatory period translates into higher electricity system costs passed on to agents (retailers, large industrial consumers, etc.) through system tariffs and charges.
The specific analysis of SDAC/SIDC costs—the coupling of European daily and intraday markets—is especially relevant because these costs are shared among European system operators and their validation requires contrast with the CACM Cost Report 2024, ensuring that Spain does not assume disproportionate costs compared to other countries in the internal energy market.
Who does it affect?
- Red Eléctrica de España (REE): as the electricity system operator, it is the direct subject of the resolution. The regulatory account balance determines its remuneration in 2026-2028.
- Electricity retailers: system costs transferred to the 2026-2028 period affect the tariffs and charges they pass on to their customers.
- Large industrial consumers: any adjustment in electricity system costs impacts their energy bills through regulated charges.
- Generators and wholesale market agents: the financial balance of the electricity system affects the conditions of the market in which they operate.
- Regulatory advisors and energy consultants: must incorporate the transferred balance into their forecasting models for regulatory costs in 2026-2028.
Practical example
Suppose the CNMC fully validates the four items requested by REE: €8.3 million in external expenses + €475,609 in investments + €2.3 million in staffing + €3.7 million in OPEX, totaling approximately €14.77 million.
With a regulatory account allocation of €5 million, the resulting deficit would be approximately €9.77 million. This deficit would be transferred to the 2026-2028 regulatory period, increasing the remuneration recognized to REE in that period and, therefore, the electricity system costs passed on to agents.
A retailer serving industrial customers with contracts referenced to regulated costs should review its cost forecasting models for 2026-2028 incorporating this possible increase, especially in charges associated with system operation.
What should companies do now?
- Review energy cost models for 2026-2028: incorporate the possible transfer of the regulatory account balance as an adjustment variable in electricity system cost forecasts.
- Analyze the impact on supply contracts referenced to regulated costs: if you have contracts with variable charges linked to system costs, evaluate whether the adjustment could affect your current conditions.
- Follow the evolution of the 2026-2028 regulatory period: the CNMC will publish REE's final remuneration for that period incorporating the transferred balance. Now is the time to anticipate the impact.
- Contrast with the CACM Cost Report 2024: if you are a wholesale market agent or have exposure to European market coupling costs (SDAC/SIDC), verify that the costs assigned to Spain are consistent with European benchmarking.
- Consult with your energy regulatory advisor: CNMC Circular 4/2019 establishes the prudence and efficiency criteria that the CNMC applies. Understanding these criteria allows you to anticipate future resolutions and plan better.
Frequently asked questions
What is the regulatory account of the electricity system operator?
It is a mechanism that allows Red Eléctrica de España (REE) to request recovery of extraordinary or unforeseen costs not covered by its ordinary regulatory remuneration. For the 2023-2025 period, the account is allocated with €5,000 million. The surplus or deficit balance at the close of the period is transferred to the following period (2026-2028), adjusting the operator's future remuneration.
How much has Red Eléctrica requested to recover from the 2025 regulatory account?
REE requested recovery of a total of more than €14.7 million, broken down as: €8.3 million in external expenses (European projects and national regulations), €475,609 in investments, €2.3 million in staffing increases, and €3.7 million in higher OPEX. The account allocation is €5 million, so there is a significant difference that the CNMC has analyzed item by item.
What are SDAC/SIDC costs and why does the CNMC analyze them?
SDAC (Single Day-Ahead Coupling) and SIDC (Single Intraday Coupling) are the mechanisms for coupling daily and intraday electricity markets at the European level. REE, as the system operator, incurs costs to participate in these mechanisms. The CNMC contrasts them with the CACM Cost Report 2024 to verify that the costs assigned to Spain are proportional and efficient compared to other European operators.
How does the regulatory account balance affect electricity market agents?
The balance—surplus or deficit—is transferred to the 2026-2028 regulatory period and adjusts REE's remuneration in that period. If there is a deficit, electricity system costs increase and are passed on to agents (retailers, large consumers) through regulated tariffs and charges. If there is a surplus, costs are reduced in the following period.
What criteria does the CNMC apply to validate REE's costs?
The CNMC applies the criteria of prudence and economic efficiency established in CNMC Circular 4/2019. This involves documentally reviewing each cost item requested, verifying that expenses are necessary for system operation, and contrasting them with external references such as the CACM Cost Report 2024 in the case of European market coupling costs.
Official source
Consult complete regulation at official source
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-20733
