Key data
| Regulation | Resolution of June 26, 2026, from the CNMC, on modification of parameters and remuneration regime of the 66 kV submarine link between Chío (Tenerife) and El Palmar (La Gomera) |
|---|---|
| Publication | July 7, 2026 |
| Entry into force | July 7, 2026 |
| Affected parties | Red Eléctrica de España (operator) and electricity consumers of the Canary Islands system (Tenerife and La Gomera) |
| Category | Energy |
| Year | 2026 |
| Base remunerable investment | €143.527M |
| Maximum remunerable ceiling | €179.409M (1.25 × base value) |
| Link capacity | 50 MVA per circuit (dual circuit) |
| Voltage | 66 kV |
| Classification | Secondary Transmission Network |
| Official source | BOE-A-2026-14752 |
The 66 kV submarine cable between the substations of Chío (Tenerife) and El Palmar (La Gomera) now has an official price: €143.527 million in remunerable investment, with a maximum ceiling of €179.409 million. This is established by the Resolution of June 26, 2026 from the National Commission for Markets and Competition (CNMC), published in the BOE on July 7, 2026.
The resolution modifies the singularity parameters of the link and includes the installation in the special remuneration regime for singular investments with special technical characteristics. This means that the costs of this infrastructure are distributed among all consumers of the Canary Islands electricity system through the tariff, and do not fall solely on Red Eléctrica de España as operator.
What does this regulation establish?
The resolution acts on two levels: it modifies the singularity parameters already recognized by the link and formally incorporates the installation into the remuneration regime for singular investments. This regime exists precisely for infrastructures that, due to their special technical characteristics, do not fit into standard reference unit values.
The key elements regulated by the resolution are as follows:
| Element | Detail |
|---|---|
| Main link | Underground-submarine dual circuit cable, 66 kV, between Chío (Tenerife) and El Palmar (La Gomera) |
| Capacity | 50 MVA per circuit |
| Network classification | Secondary Transmission Network |
| Base remunerable investment | €143.527M |
| Maximum remunerable ceiling | €179.409M (1.25 factor on base value) |
| PRTR funds effect | If they cover 50% of audited investment, remuneration charged to the electricity system is reduced proportionally |
| Elements excluded from singular regime | End substations and associated reactances (already have reference unit values in current regulations) |
| Operator | Red Eléctrica de España |
It is relevant to note that the end substations (in Chío and El Palmar) and the associated reactances are excluded from the singular regime. The reason is that these elements already have reference unit values established in current regulations, so their remuneration follows the ordinary procedure.
Economic and operational impact
The economic impact of this resolution materializes in the Canary Islands electricity tariff. By including the link in the singular remuneration regime, the €143.527M base investment becomes a cost that the electricity system—that is, consumers—assumes over the useful life period of the installation.
There are two variables that condition the final amount charged to the system:
- Audited real cost: If the final audited investment exceeds the base value but not the ceiling of €179.409M, the difference can also be remunerated. If it exceeds the ceiling, the excess is charged to the operator.
- PRTR funds: If funds from the Recovery, Transformation and Resilience Plan (PRTR) cover 50% of the audited investment, remuneration charged to the electricity system is reduced proportionally, alleviating the impact on tariff.
From an operational perspective, the classification as Secondary Transmission Network means that Red Eléctrica assumes management and maintenance of the link under the transmission regulatory framework, with the quality and availability obligations that this entails.
Who does it affect?
- Red Eléctrica de España: As link operator, it is the main directly affected party. The resolution determines what portion of its investment it recovers via tariff and under what conditions.
- Electricity consumers in Tenerife and La Gomera: The socialization of costs in the Canary Islands system tariff affects households, businesses and public administrations on both islands.
- Large industrial consumers in the Canary Islands: Companies with high energy intensity in the Canary Islands system will see this cost reflected in their electricity bills more significantly in absolute terms.
- PRTR managers in the energy sector: The application or non-application of PRTR funds to 50% of audited investment has a direct impact on how much the electricity system pays versus how much the European fund finances.
- Energy sector regulators and advisors: The resolution sets a precedent on how the CNMC parameterizes and remunerates island interconnection infrastructures with special technical characteristics.
Practical example
Suppose the final audited investment of the submarine cable amounts to €160M, a figure between the base value (€143.527M) and the maximum ceiling (€179.409M).
Scenario A — Without PRTR funds: The full €160M is included in the singular remuneration regime and socialized in the Canary Islands electricity tariff over the useful life of the asset. Red Eléctrica recovers that investment via tolls.
Scenario B — With PRTR funds at 50%: PRTR covers €80M (50% of the €160M audited). Remuneration charged to the electricity system is reduced proportionally, so only the remaining €80M is socialized in tariff. The savings for Canary Islands consumers is direct and significant.
If the audited investment exceeded the ceiling of €179.409M, the excess would not be remunerable and would be charged to Red Eléctrica, without being passed on to the tariff.
What should companies do now?
- Large consumers in the Canary Islands: Review the impact on energy cost forecasts. The socialization of €143.527M (or up to €179.409M) in the Canary Islands tariff will translate into a progressive increase in transmission tolls. Update your energy cost models.
- Red Eléctrica and its regulatory team: Verify that final audited investment does not exceed the ceiling of €179.409M to avoid non-recoverable costs. Actively manage the PRTR funds request to reduce the burden on the system.
- Energy advisors and tariff consultants: Incorporate this regulated cost into electricity tariff analyses for Canary Islands clients. The resolution has been in force since July 7, 2026.
- PRTR funds managers in the energy sector: Evaluate whether the link meets requirements for 50% coverage of audited investment. Effective management of these funds can reduce the tariff impact by half.
- Companies with operations in La Gomera: The improvement in electrical interconnection with Tenerife (50 MVA per circuit, dual circuit) can open opportunities for greater availability and energy reliability. Assess the positive impact on supply continuity.
Frequently asked questions
How much is the remunerable investment of the Tenerife-La Gomera submarine cable worth?
The CNMC has set a base remunerable investment of €143.527M, with a maximum ceiling of €179.409M (equivalent to 1.25 times the base value). If the final audited investment exceeds that ceiling, the excess is not remunerable and is charged to Red Eléctrica de España.
What happens if PRTR funds are applied to the submarine cable?
If PRTR funds cover 50% of the audited investment, remuneration charged to the electricity system—and therefore to Canary Islands consumers via tariff—is reduced proportionally. That is, half the cost is financed by the European fund and the other half is socialized in tariff.
Why are substations and reactances excluded from the singular regime?
The end substations (in Chío and El Palmar) and associated reactances are excluded from the singular remuneration regime because they already have reference unit values established in current regulations. Only elements without applicable standard reference access the singular regime.
How does this resolution affect the electricity tariff in the Canary Islands?
The costs of the link included in the singular remuneration regime are socialized in the electricity tariff of the Canary Islands system. This means that households, businesses and administrations in Tenerife and La Gomera contribute to financing the infrastructure through transmission tolls included in their electricity bill.
What capacity does the submarine cable between Tenerife and La Gomera have?
The link is dual circuit with a capacity of 50 MVA per circuit, operating at 66 kV. It is classified as Secondary Transmission Network and is operated by Red Eléctrica de España.
Official source
Consult complete regulation at official source
Notice: 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-2026-14752