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Establish a Business on Electricity and Gas Supply in Spain

Establish a Business on Electricity and Gas Supply in Spain

Matters related to electricity in Spain are divided between distribution companies and wholesale suppliers, the latter being the single entities that can supply energy to end-consumers. The activities of wholesale suppliers are shared between two types of suppliers – free marketers and reference marketersOur team of Spanish lawyers can provide in-depth assistance on the legal requirements imposed when starting an electricity supply business in this country. 

What are the legal requirements for starting a Spanish electricity supply business? 

Businessmen who want to start a company in Spain in the field of energy as suppliers should know that this sector is completely liberalized and that the participation of foreign owned companies is allowed in this industry. When starting a business in this industry, the company’s representatives should comply with the following: 

  • • the company must notify the Ministry of Energy on starting its supply activities in Spain through a report and an affidavit;
  • • the affidavit should contain relevant information on the company’s capacity to comply with the national legislation on the matter;
  • • comply with the regulations prescribed by the Operational Procedures and Electricity Market Operating Rules;
  • • comply with the regulations of the Generation Market Functioning Rules

Gas market in Spain 

One of the most important aspects of the gas industry in Spain is given by the large volumes of gas imports, the country being highly dependent on other states on this matter (less than 1% of the Spanish gas consumption derives from domestic production). Its main trading partners in this sense are Algeria, Nigeria and Norway and our team of lawyers in Spain can provide more details on the import-export regulations that are addressed to this sector. 

Just like in the case of energy supply companies, the supply of gas is completely liberalized and end consumers are allowed to choose their supplier. The main rules of law that regulate gas supply in Spain are given by the Hydrocarbons Law, Royal Decree 949/2001, the System Technical Management Rules and others, which can be detailed by our law firm in Spain. For more details regarding the above mentioned information, please contact our Spanish lawyers.