New law reorganizing Spain's electricity sector and its prices

Automatic summary, not yet reviewed

1. The law replaces the 1997 law and states that electricity supply is a service of general economic interest, with free competition in production and regulation of network activities.
2. It creates the principle of economic and financial sustainability: system revenues must cover all its costs, and any measure that raises costs or cuts revenues must be offset by an equivalent adjustment.
3. It separates access tolls for the networks (to pay for transmission and distribution) from new system charges (for other system costs, such as renewables). Both are uniform across the country and are generally reviewed every year.
4. It eliminates the ordinary and special regime categories, and renewables, cogeneration and waste plants will receive their market revenue plus, where applicable, a specific payment calculated on a reference standard facility run by an efficient company.
5. Self-consumption is regulated for the first time: anyone using their own energy with an installation connected to the grid must pay the same tolls, charges and backup costs as other consumers, with some temporary exceptions.
6. It defines the voluntary price for small consumers as a reference maximum price, and creates the figure of the vulnerable consumer, who will be entitled to a reduced rate through the social bonus.
7. Consumer rights are strengthened: choosing a supplier, switching companies at no cost, receiving itemized bills, having access to consumption data and filing complaints, with a free procedure before the Ministry.
8. The penalty regime is reformed with fines of up to 60 million euros for very serious offenses, plus accessory penalties such as being barred from operating in the sector.

Who it affects

• Electricity consumers: They pay tolls and charges, gain new rights (switching suppliers, itemized bills), and vulnerable consumers can get the social bonus.
• Electricity companies (producers, distributors, retailers): They must keep separate accounts, meet new information and customer service duties, and face fines of up to 60 million euros.
• Self-consumers: They must register and contribute to system costs for the energy they self-consume if their installation is connected to the grid.
• Public administrations: The State plans the transmission grid, sets tolls, charges and payments, and inspects and penalizes; regional governments authorize part of the installations.

Words worth knowing

Peaje de acceso (access toll)

Payment made by consumers and producers for using the electricity transmission and distribution networks.

Cargo (system charge)

Payment that covers other electricity system costs that are not the networks, such as support for renewables.

Comercializadora de referencia (reference retailer)

Company that sells electricity at a regulated maximum price to those who do not contract on the free market.

Bono social (social bonus)

Discount on the electricity bill for vulnerable consumers, considered a public service obligation.

Instalación tipo (standard facility)

Theoretical model of a representative installation used to calculate payments for renewables.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries