After the recent approval, on 19 February, of the new 2018-2022 Strategic Plan, the Red Eléctrica Group has begun an internal transformation process to adapt its organisational structure to the challenges posed by the roadmap associated with the Plan, which can be summarised in five pillars for action: make the energy transition possible, consolidate the position of the Company as a benchmark for telecommunications infrastructure, expand the Company’s activity abroad in the field of electricity and telecommunications, become a reference in technological innovation in the area of ​​its activity and strengthen the operational effectiveness and financial discipline.

In order to fulfil these objectives, Red Eléctrica has decided, on the one hand, to strengthen the accounting and functional independence of the System Operator and Transmission Grid Manager (TSO) and, on the other hand, to promote the area of ​​telecommunications, nationally and internationally, and promote technological innovation. In order to do this, the Company has created two new departments: the Executive Division of Telecommunications and International and the Technology Department.

The goal is twofold: facilitate the energy transition in the 2030 horizon, as well as help achieve the objectives set in the draft National Integrated Energy and Climate Plan, and create a larger and stronger business group with greater options for growth.

System Operator independence and bolstering the role of TSO

Red Eléctrica complies with all legal and regulatory measures regarding independence in the management of its regulated activity in Spain. However, and in accordance with its proactive spirit in all matters of corporate governance and compliance, the Company wants the mechanisms that ensure this independence to be made more transparent.

Therefore, at the start of the deployment of the new 2018-2022 Strategic Plan, Red Eléctrica considers it appropriate to strengthen the current mechanisms of independence of the System Operator and Transmission Grid Manager, as well as the sustainability and financial solvency of Red Eléctrica de España (REE S.A.U.).

For this reason, and with a view to strengthening the functional separation referred to in the Twenty-Third Additional Provision of Law 54/1997, of 27 November, in addition to the performance and independence criteria included in the System Operator Code of Conduct currently in force, the Board of Directors of the Red Eléctrica Group has approved the following measures today:

Create a TSO Supervision Committee, chaired by the Company’s Chairman, which will monitor compliance with the independence and confidentiality criteria by the System Operator, as well as the financial economic obligations established by law for Red Eléctrica de España.

Modify the Internal Regulations of the Board of Directors to strengthen its role as supervisor of the independence of the System Operator and Transmission Grid Manager.

Request an additional external audit to strengthen the verification of the separation of accounting of the System Operator and Transmission Grid Manager from that of the Transmission agent and constructor of the high voltage grids.

Eliminate the participation of the General Manager of System Operations Division in the Executive Committee and in the Purchasing Committee in order to strengthen its functional independence, although up to now the General Manager has abstained from participating in those decisions that could affect the transmission activity.

Creation of two new Departments

Moreover, in order to successfully tackle the new path set out in the 2018-2022 Strategic Plan, the Company has initiated a process to adapt the organisation to the new business focus, which promotes the controlled diversification of its activity.

Therefore, the Executive Division of Telecommunications and International is created in order to promote the development of the Group’s non-regulated businesses, which includes the integration and business development of Hispasat, with the challenge of positioning the Group as a supplier of reference for telecommunications infrastructure and expanding the business abroad.

Similarly, and with the aim of transforming the Red Eléctrica Group into a benchmark in terms of technological innovation, the Technology Department has been created in order to centralise and spearhead the Group's resources in terms of innovation and technological development.

Roberto García Merino will be the new Executive Director of Telecommunications and International. Mr. García Merino has a degree in Economics and Business Administration, an MBA from the IE Business School and the General Management Programme (PDG) from the IESE Business School. He joined Red Eléctrica in 2004 and since November 2015 has been Corporate Director of Business Diversification.

Silvia Bruno de la Cruz will be the new Manager of Technology. Ms. Bruno has a degree in a civil engineer, a Master in Materials Engineering and the Executive Development Programme (PDG) from the IESE Business School, she joined Red Eléctrica in 2011,and since December 2015 has been the Manager of the Supply Area.

Lastly, and in order to support the Secretary of the Board and the Board of Directors in the corporate development required for the launch and execution of the new 2018-2022 Strategic Plan, the position of the Deputy Secretary of the Board has been reinstated, empowered with management capacities and reporting to the General Secretariat of the Group.

The Red Eléctrica Group will continue to work intensively in the deployment of its new Strategic Plan, adapting its organisation to respond to the new challenges it faces, and to do so in an agile and flexible manner, to become a larger, more sustainable and more diversified Group.