How Spain organizes and opens up its electricity supply

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1. The Law regulates all electricity supply activities (generation, transmission, distribution, retailing and system management) and requires them to operate under principles of objectivity, transparency and free competition.
2. Free business initiative is recognized in the sector, but these activities are considered an essential service and must guarantee supply to all consumers in the national territory.
3. The National Energy Commission (Comisión Nacional del Sistema Eléctrico) is created, a public body that oversees effective competition, objectivity and transparency in the electricity system, with powers to request information, inspect, arbitrate and control.
4. Electricity production works through an offer-based market: producers submit sale offers and the cheapest ones are used first until demand is met. Retailing is free and qualified consumers can choose their supplier.
5. All consumers have the right to electricity supply across the national territory. The Government may adopt exceptional, temporary measures when there is a real risk of supply shortage or dangerous situations.
6. Electricity tariffs are the same throughout the national territory for consumers who are not qualified, and bills must break down system costs and taxes to make prices transparent.
7. Supply can only be cut off in specific cases: when the contract provides for it, due to force majeure, for necessary works, or for non-payment, in which case at least two months must pass since the payment request.
8. The Law defines very serious, serious and minor offenses in the electricity sector, with fines of up to 500,000,000 pesetas for the most serious ones, plus possible revocation of the authorization or temporary disqualification.

Who it affects

• Electricity consumers: Supply is guaranteed across the territory, tariffs are uniform and bills are itemized; qualified consumers can choose their supplier.
• Electricity companies: They must separate regulated from non-regulated activities, obtain authorizations, submit to inspections and sanctions, and allow third-party access to their networks.
• Special regime producers (renewables, cogeneration, waste): They can sell surplus energy to the system and receive additional premiums, especially renewable energy producers.
• Public authorities (State and Autonomous Communities): Powers to authorize, inspect and sanction electrical installations are shared, and the State carries out electricity planning.

Words worth knowing

Consumidor cualificado (qualified consumer)

A customer who, based on size or consumption, may freely choose an electricity supplier instead of paying the regulated tariff.

Peaje (network toll)

The fee paid for using the electricity transmission and distribution networks, set by the Government.

Operador del mercado (market operator)

The company that manages purchase and sale offers for electricity and sets the market price.

Operador del sistema (system operator)

The company that guarantees the technical security and continuity of electricity supply by coordinating generation and transmission.

Servidumbre de paso (right of way)

The right to use someone else's land to install or maintain power lines, with compensation.

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