Spain's electricity sector reviews system's operating costs one year after blackout

One day before the first anniversary of the blackout, which hit Spain on 28 April 2025, major electricity companies, energy-intensive industries and energy retailers have launched an observation tool to monitor the rising costs of the electricity system's operation.

Adjustment services are the mechanisms the system operator uses to balance electricity supply and demand in real time. According to the sector's calculations, these costs have reached 1.8 billion euros so far this year, with more than 320 million between 1 and 23 April. During that period, the average cost was 23.58 euros per megawatt-hour, with some days exceeding the wholesale market price.

In recent months, the sector has reported an increase in these costs, coinciding with the so-called "enhanced operation" following last year's blackout. This mechanism involves greater use of gas-fired power plants to ensure system stability, which raises operating costs at certain times.

Industry sources warn that this increase passes on to consumers through electricity bills and is impacting both households and businesses, particularly in the industrial sector, where it can represent up to 25 per cent of production costs.

The sector is demanding greater transparency in the breakdown of these costs and is calling for increased oversight by the CNMC competition commission. It also proposes integrating these costs into a regulated structure of the electricity system, with the aim of reducing their volatility in the final price of energy.

"The increase in these costs is negatively impacting the competitiveness of the economy. It is essential to align operational and regulatory decisions with the objectives of cost reduction, decarbonisation and energy independence," sources stated on Monday.

At the same time, the associations are calling for a review of the electricity tax framework, stating that the tax cuts implemented in recent years should be made permanent.