Bankinter | The CNMC (National Markets and Competition Commission) has published its remuneration proposal for Redeia’s electricity transmission network business for the next regulatory period 2026-2031. The proposed financial remuneration rate is 6.46% (against 5.58% previously) and includes significant investments in the network for this period. As a result, Redeia’s regulated income would grow from €1.217 billion forecast for 2025 to €1.858 billion in 2031, representing an average annual growth rate of 7.3%. A consultation period is now open until 9 September.
Bankinter analysis team’s view: Good news for the group. On the one hand, the regulated asset base is set to benefit in the future from the investments needed to integrate all the new renewable capacity, strengthen interconnections with France and the islands, and modernise the existing network. On the other hand, the financial return on these assets improves considering the environment of higher long-term interest rates in recent years and the need to incentivise investments related to the energy transition. As a result, the average annual growth of Redeia’s regulated income would be 7.3%. In addition, there is the possibility of further growth in this income, stemming from a possible improvement in the final financial return.
