Spain's grid operator Red Eléctrica and regulator CNMC aim to cut demand‑response costs

Spain’s competition watchdog, the CNMC, is preparing an expedited reform of the active demand‑response service (SRAD) after the latest auction saw the price paid by all electricity customers rise sharply. The November auction awarded a fixed €255.5 million to about 30 industrial groups for a six‑month period, an 80 % increase over the previous figure. The CNMC plans to change the award rules to prevent a small volume of high‑priced offers from driving up the whole service cost, to allow Red Eléctrica to exclude low‑benefit bids, and to limit the public disclosure of all submitted offers.

At the same time, Red Eléctrica de España (REE) continues to operate a “reinforced operation” mode introduced after the historic 2023 blackout. REE argues the measures are necessary for “absolute security” because not all generators complied with their obligations during the event. The extra safeguards have cost consumers €666 million – 2.12 % of total system costs, roughly four euro‑cents per day for an average household – though industry‑commissioned estimates put the figure as high as €1.1 billion. REE has refused to set aside provisions for potential fines related to the blackout and defends its accounting approach.