Electric Companies Demand Urgent Regulatory Measures Amid Operational Challenges

The Association of Electric Energy Companies (Aelēc), representing firms like Iberdrola, Endesa, and EDP, has called for extraordinary regulatory measures to address rising costs due to the reinforced operational strategy implemented by Red Eléctrica de España (REE) after the blackout on April 28. Aelēc expressed concern over the significant economic impact of this conservative strategy, which relies heavily on combined cycles and adjustment services. According to REE, the average cost of technical restrictions in the daily market rose from €9 per megawatt-hour (MWh) in May 2024 to €22/MWh in May 2025, resulting in an additional €200 million in costs within a month. Aelēc stated, “While supply security must take priority in exceptional situations, this strategy is generating unexpected and high costs that directly affect market agents without prior notice or management capacity.” The association is urging for a temporary and exceptional proposal to prevent structural damage to the commercialization market and a generalized increase in electricity prices. Current Operation Procedures 8.2 and 14.4 allow for extraordinary regulatory measures in such scenarios.
— new from El Periódico de la Energía

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