At a European level, the applicable legislation is the following:
In accordance with the foundations of the legal system of the European Union, the general principles on the organisation and functioning of the electricity sector established in these Directives shall be incorporated into the national regulation of the different member countries.
Nationally, the new Electricity Sector Law 24/2013, of 26 December, establishes the legislation by which the activities of Red Eléctrica are regulated, attributing to it, under a regime of exclusivity, the activities related to the transmission of energy and the operation of the electricity system, as well as the function of transmission grid manager.
Although Law 24/2013 repeals almost the entirety of the previous electricity law, Law 54/1997, it maintains in force its additional twenty-third provision, which determines the current corporate structure for the undertaking of the activities carried out by Red Eléctrica, establishing the name of the parent company of the group, Red Eléctrica Corporación, S.A., as well as the integration into the subsidiary Red Eléctrica, S.A.U. of the activities associated to transmission and system operation and the management of the transmission grid, the latter activity performed by a specific unit with its own proper accounting and functional model separated from the transmission activity.
The remuneration for the activity of electricity transmission is fixed administratively. During 2012 and 2013, several legal provisions were published aimed at correcting the imbalance between revenues and costs of the electricity sector, and which established measures that modify the remuneration methodology for the transmission activity carried out by Red Eléctrica:
Following the publication of the new Electricity Sector Law 24/2013 on the electricity sector, on 27 December 2013, Royal Decree 1047/2013 was approved by the Cabinet of Ministers, establishing a method for calculating remuneration for the electricity transmission activity in Spain, based on a clear, stable and transparent methodology, which strengthens and clarifies the principles and criteria for establishing the remuneration of regulated activities in line with other comparable European companies.
For 2013, 2014 and 2015, in the absence of regulatory development of Royal Decree 1047/2013, a provisional remuneration model was applied for the transmission activity; said model is defined in Royal Decree Law 9/2013. From 2016, the new methodology established by Royal Decree 1047/2013 will start to be applied once the different legal regulations that develop it have been published, including Order IET/2659/2015 of 11 December, which fixes the reference unit values of investment and operation and maintenance of transmission facilities.
Regulations of a technical and instrumental nature
In addition to the general regulations that encompass the activity of Red Eléctrica in the sector, there is a broad regulation of technical and instrumental nature that, as its name suggests, aims to regulate the necessary measures for an adequate technical management of the peninsular and no peninsular electricity systems. Most of this legislation addresses the Operating Procedures, although its scope also covers the following elements of the technical regulation of the electricity sector:
Additionally, the Red Eléctrica Group, through its subsidiary company, Red Eléctrica Internacional (REI), has investments in the electricity sector, internationally, in Peru. This country has liberalised its electricity industry and has defined a regulated tariff model for the transmission activity.