Spain's CNMC orders split of Red Eléctrica's dual roles

The Spanish competition regulator (CNMC) released a report concluding that Red Eléctrica's combined functions as electricity system operator and high‑voltage transmission manager create a conflict of interest that can distort grid planning and jeopardise supply security. The regulator recommends a total legal and functional separation of the two activities into independent companies.

The CNMC’s findings come after the April 28 2025 blackout and highlight that the current structure may bias investment decisions toward more profitable projects rather than those needed for reliable supply. Red Eléctrica has challenged the report, arguing the integrated model yields cost‑saving synergies. The report notes that Spain’s transmission network faces capacity limits for renewable integration, with projected investment needs exceeding €6 billion and congestion‑related costs surpassing €900 million in recent years.