Red Eléctrica 
Corporación, 
S.A. 
 
Consolidated Annual Accounts 
31 December 2019 
Consolidated Directors’ Report 
2019 
 
(With Independent Auditor's Report Thereon) 
(Free translation from the original in Spanish. In the 
event of discrepancy, the Spanish-language version 
prevails.)

KPMG Auditores, S.L. 
Paseo de la Castellana, 259C 
28046 Madrid 
 
Independent Auditor's Report on the Consolidated Annual 
Accounts 
KPMG Auditores S.L., a limited liability Spanish company and a member 
firm of the KPMG network of independent member firms affiliated with 
KPMG International Cooperative (“KPMG International”), a Swiss entity. 
KPMG Confidential 
Filed at the Madrid Mercantile Registry in volume T. 11.961, sheet 90, 
section 8, page number M -188.007, entry number. 9 
Tax identification number (N.I.F). B-78510153 
 
 
 
 (Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
To the Shareholders of Red Eléctrica Corporación, S.A. 
REPORT ON THE CONSOLIDATED ANNUAL ACCOUNTS 
Opinion ___________________________________________________________________  
We have audited the consolidated annual accounts of Red Eléctrica Corporación, S.A. (the “Parent”) and 
subsidiaries (together the “Group”) which comprise the consolidated statement of financial position at 31 
December 2019, and the consolidated income statement, consolidated statement of comprehensive income, 
consolidated statement of changes in equity and consolidated statement of cash flows for the year then 
ended, and consolidated notes. 
In our opinion, the accompanying consolidated annual accounts give a true and fair view, in all material 
respects, of the consolidated equity and consolidated financial position of the Group at 31 December 2019 
and of its consolidated financial performance and its consolidated cash flows for the year then ended in 
accordance with International Financial Reporting Standards as adopted by the European Union (IFRS-EU) and 
other provisions of the financial reporting framework applicable in Spain. 
Basis for Opinion ___________________________________________________________  
We conducted our audit in accordance with prevailing legislation regulating the audit of accounts in Spain. 
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit 
of the Consolidated Annual Accounts section of our report.  
We are independent of the Group in accordance with the ethical requirements, including those regarding 
independence, that are relevant to our audit of the consolidated annual accounts pursuant to the legislation 
regulating the audit of accounts in Spain. We have not provided any non-audit services, nor have any 
situations or circumstances arisen which, under the aforementioned regulations, have affected the required 
independence such that this has been compromised. 
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 
opinion.

2 
 
 
Key Audit Matters __________________________________________________________  
Key audit matters are those matters that, in our professional judgement, were of most significance in the 
audit of the consolidated annual accounts of the current period. These matters were addressed in the context 
of our audit of the consolidated annual accounts as a whole, and in forming our opinion thereon, and we do 
not provide a separate opinion on these matters.  
Additions to property, plant and equipment (Euros 401,556 thousand) 
See note 7 to the consolidated annual accounts 
Key audit matter 
How the matter was addressed in our audit 
Most of the Group's property, plant and equipment 
pertain to Red Eléctrica de España, S.A.U., the 
regulated activity of which mainly consists of 
managing the transmission network of the Spanish 
electricity system. Each year, Red Eléctrica de 
España, S.A.U. makes substantial investments in 
property, plant and equipment in accordance with 
the Electricity Transmission Network Development 
Plan for 2015 – 2020 approved by agreement of 
the Council of Ministers on 16 October 2015. In 
2019 additions to the Group’s property, plant and 
equipment totalled Euros 472,907 thousand, of 
which Euros 401,556 thousand pertains to Red 
Eléctrica de España, S.A.U. 
Considering the nature of the business carried out 
by Red Eléctrica de España, S.A.U., remuneration is 
set by the Ministry for Ecological Transition and 
Demographic Challenge. The calculation method is 
stipulated in legislation and takes into account the 
costs necessary to construct, operate and maintain 
the technical electricity facilities, in accordance 
with Electricity Industry Law 24/2013 of 26 
December 2013. As part of the Group's revenues 
are directly related to the electricity transmission 
facilities recognised each year, and bearing in mind 
the significance of these facilities in the 
consolidated annual accounts, we have considered 
the additions to property, plant and equipment to 
be a key audit matter. 
Our audit procedures included evaluating the 
relevant controls associated with processes involving 
“fixed assets and acquisitions”, as well as performing 
substantive procedures on property, plant and 
equipment. We also assessed the consistency of the 
Group's accounting policies on “fixed assets and 
acquisitions” with the applicable accounting 
framework. 
Our procedures for evaluating and analysing the 
control environment were focused on: 
- 
Testing the design, implementation and 
operating effectiveness of key manual and 
automated controls related to the cycles of 
“additions and disposals of fixed assets” and 
“acquisition of assets and services, progress 
billings for construction”. 
Our substantive procedures on property, plant and 
equipment mainly consisted of: 
- 
Analysing additions during the year and 
assessing the accuracy of their accounting 
recognition. 
- 
Analysing documentation supporting the cost 
allocation for a sample of projects in progress.  
We also assessed whether the disclosures in the 
consolidated annual accounts meet the 
requirements of the financial reporting framework 
applicable to the Group.

3 
 
 
Hedging instruments  
(assets: Euros 26,043 thousand; liabilities: Euros 53,262 thousand; valuation adjustments: hedging 
transactions: Euros 82,699 thousand) 
See notes 13, 17, 18 and 19 to the consolidated annual accounts 
Key audit matter 
How the matter was addressed in our audit 
Loans and borrowings and bonds and other 
marketable securities total Euros 6,452,809 thousand, 
of which Euros 894,808 thousand is in foreign 
currency. The Group arranges financial instruments, 
including foreign currency and interest rate 
derivatives, to hedge exposures to exchange rate and 
interest rate fluctuations on part of this debt and in 
highly probable forecasted future transactions. 
Derivatives designated as accounting hedges must 
meet strict criteria with respect to documentation and 
the effectiveness of the hedge on inception. 
Furthermore, the fair value of derivative financial 
instruments is determined using valuation techniques 
that may take into consideration, among other factors, 
unobservable market data or complex pricing models 
that require a high degree of judgement. 
Given the complexity of complying with the financial 
reporting framework in force governing the 
identification and measurement of hedging 
instruments and the correct measurement of their 
effectiveness, we have considered this to be a key 
audit matter. 
Our audit procedures included evaluating the 
relevant controls associated with the 
classification and measurement of hedging 
instruments, and performing substantive 
procedures thereon. We also assessed the 
compliance of the Group's accounting policies on 
financial instruments with the applicable 
accounting framework. 
Our procedures for evaluating the control 
environment were focused on: 
- 
Testing the design, implementation and 
operating effectiveness of key controls 
related to the cycles of “derivative financial 
instruments” and “recognition of financial 
transactions”. 
Our substantive procedures on hedging 
derivatives mainly consisted of: 
- 
Performing substantive tests to evaluate 
whether derivative financial instruments 
have been correctly measured. Our 
specialists in financial instruments were 
involved in these procedures. 
- 
Assessing compliance with hedge 
accounting criteria under International 
Financial Reporting Standard (IFRS) 9 as 
regards identifying hedging instruments and 
positions to be hedged. Our specialists in 
financial instruments were involved in these 
procedures. 
- 
Evaluating the reasonableness of the 
measurement of the effectiveness of the 
Group's accounting hedges. Our specialists 
in financial instruments were involved in 
these procedures.

4 
 
 
Hedging instruments  
(assets: Euros 26,043 thousand; liabilities: Euros 53,262 thousand; valuation adjustments: hedging 
transactions: Euros 82,699 thousand) 
See notes 13, 17, 18 and 19 to the consolidated annual accounts 
Key audit matter 
How the matter was addressed in our audit 
We also assessed whether the disclosures in the 
consolidated annual accounts meet the 
requirements of the financial reporting 
framework applicable to the Group. 
 
Other Information: Consolidated Directors’ Report ________________________________  
Other information solely comprises the 2019 consolidated directors' report, the preparation of which is the 
responsibility of the Parent's Directors and which does not form an integral part of the consolidated annual 
accounts.  
Our audit opinion on the consolidated annual accounts does not encompass the consolidated directors’ 
report. Our responsibility as regards the content of the consolidated directors' report is defined in the 
legislation regulating the audit of accounts, which establishes two different levels: 
a) A specific level applicable to the consolidated non-financial information statement, as well as certain 
information included in the Annual Corporate Governance Report, as defined in article 35.2. b) of Audit 
Law 22/2015, which consists solely of verifying that this information has been provided in the 
consolidated directors' report, or where applicable, that the consolidated directors' report makes 
reference to the separate report on non-financial information, as provided for in legislation, and if not, 
to report on this matter. 
b) A general level applicable to the rest of the information included in the consolidated directors' report, 
which consists of assessing and reporting on the consistency of this information with the consolidated 
annual accounts, based on knowledge of the Group obtained during the audit of the aforementioned 
accounts and without including any information other than that obtained as evidence during the audit. 
Also, assessing and reporting on whether the content and presentation of this part of the consolidated 
directors' report are in accordance with applicable legislation. If, based on the work we have performed, 
we conclude that there are material misstatements, we are required to report them.  
Based on the work carried out, as described above, we have verified that the information mentioned in 
section a) above has been provided in the consolidated directors' report, that the rest of the information 
contained in the consolidated directors' report is consistent with that disclosed in the consolidated annual 
accounts for 2019 and that the content and presentation of the report are in accordance with applicable 
legislation.

5 
 
 
  
In accordance with the requirements set forth in article 540 of the Revised Spanish Companies Act and 
Spanish National Securities Market Commission (CNMV) Circular 5/2013 of 12 June 2013, subsequently 
amended by CNMV Circular 7/2015 of 22 December 2015 and by CNMV Circular 2/2018 of 12 June 2018 and 
which provides the templates for the Annual Corporate Governance Report for listed corporations, and for 
the purposes of the description of Internal Control over Financial Reporting in Annual Corporate Governance 
Reports, and as mentioned in section F.7.1 of the Annual Corporate Governance Report, which forms part of 
the accompanying consolidated directors' report for 2019, on 25 February 2020, at the Company's request, 
we issued our Independent Reasonable Assurance Report on the Internal Control over Financial Reporting 
(ICOFR) of the Red Eléctrica Group for 2019, based on our examination, which was performed in accordance 
with ISAE 3000 (Revised) (International Standard on Assurance Engagements 3000, Assurance Engagements 
Other than Audits or Reviews of Historical Financial Information) issued by the International Auditing and 
Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC) for the issue of 
reasonable assurance reports. 
Directors' and Audit Committee's Responsibility for the Consolidated Annual Accounts __  
The Parent's Directors are responsible for the preparation of the accompanying consolidated annual accounts 
in such a way that they give a true and fair view of the consolidated equity, consolidated financial position 
and consolidated financial performance of the Group in accordance with IFRS-EU and other provisions of the 
financial reporting framework applicable to the Group in Spain, and for such internal control as they 
determine is necessary to enable the preparation of consolidated annual accounts that are free from material 
misstatement, whether due to fraud or error. 
In preparing the consolidated annual accounts, the Parent's Directors are responsible for assessing the 
Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and 
using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to 
cease operations, or have no realistic alternative but to do so. 
The Parent's audit committee is responsible for overseeing the preparation and presentation of the 
consolidated annual accounts. 
Auditor's Responsibilities for the Audit of the Consolidated Annual Accounts  __________  
Our objectives are to obtain reasonable assurance about whether the consolidated annual accounts as a 
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report 
that includes our opinion.  
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in 
accordance with prevailing legislation regulating the audit of accounts in Spain will always detect a material 
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, 
individually or in the aggregate, they could reasonably be expected to influence economic decisions of users 
taken on the basis of these consolidated annual accounts. 
As part of an audit in accordance with prevailing legislation regulating the audit of accounts in Spain, we 
exercise professional judgement and maintain professional scepticism throughout the audit. We also: 
– Identify and assess the risks of material misstatement of the consolidated annual accounts, whether due to 
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence 
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material

6 
 
 
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve 
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 
– Obtain an understanding of internal control relevant to the audit in order to design audit procedures that 
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness 
of the Group's internal control. 
– Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates 
and related disclosures made by the Parent's Directors. 
– Conclude on the appropriateness of the use by the Parent's Directors of the going concern basis of 
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to 
events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If 
we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to 
the related disclosures in the consolidated annual accounts or, if such disclosures are inadequate, to 
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our 
auditor's report. However, future events or conditions may cause the Group to cease to continue as a going 
concern. 
– Evaluate the overall presentation, structure and content of the consolidated annual accounts, including the 
disclosures, and whether the consolidated annual accounts represent the underlying transactions and 
events in a manner that achieves a true and fair view. 
– Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business 
activities within the Group to express an opinion on the consolidated annual accounts. We are responsible 
for the direction, supervision and performance of the Group audit. We remain solely responsible for our 
audit opinion. 
We communicate with the audit committee of the Parent regarding, among other matters, the planned scope 
and timing of the audit and significant audit findings, including any significant deficiencies in internal control 
that we identify during our audit. 
We also provide the Parent's audit committee with a statement that we have complied with the applicable 
ethical requirements, including those regarding independence, and to communicate with them all matters 
that may reasonably be thought to bear on our independence and, where applicable, related safeguards.  
From the matters communicated to the audit committee of the Parent, we determine those that were of 
most significance in the audit of the consolidated annual accounts of the current period and which are 
therefore the key audit matters.  
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about 
the matter.

7 
 
 
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 
Additional Report to the Audit Committee of the Parent ___________________________  
The opinion expressed in this report is consistent with our additional report to the Parent's audit committee 
dated 25 February 2020 
Contract Period ____________________________________________________________  
We were appointed as auditor of the Group by the shareholders at the ordinary general meeting on 22 March 
2019 for a period of one year, from the year commenced 1 January 2019. 
Previously, we were appointed for a period of three years, by consensus of the shareholders at their general 
meeting, and have been auditing the consolidated annual accounts since the year ended 31 December 2013. 
 
(Signed on original in Spanish) 
 
KPMG Auditores, S.L.  
On the Spanish Official Register of 
Auditors (“ROAC”) with No. S0702 
Eduardo González Fernández 
On the Spanish Official Register of 
Auditors (“ROAC”) with No. 20.435

Annual Accounts  
2019 
(Free translation from the original in Spanish. In the event 
of discrepancy, the Spanish-language version prevails.)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 1 of 87  
 
Red Eléctrica Group 
Consolidated Statement of Financial Position at 31 December 2019  
Thousands of Euros 
 
 
 
Assets 
Note 
31/12/2019 
31/12/2018 
Non-current assets 
 
 
 
Intangible assets 
6 
765,599 
242,559 
Property, plant and equipment 
7 
9,673,135 
8,711,332 
Investment property 
9 
1,345 
1,654 
Equity-accounted investees 
10 
259,594 
198,377 
Non-current financial assets 
18 
112,571 
109,911 
Non-current derivatives  
19 
14,732 
11,020 
Deferred tax assets 
22 
44,307 
27,984 
Other non-current assets  
 
3,869 
677 
Total non-current assets 
 
10,875,152 
9,303,514 
Current assets 
 
 
 
Inventories 
11 
42,720 
34,641 
Trade and other receivables 
12 
1,346,007 
1,102,560 
Trade receivables 
 
74,396 
10,826 
Other receivables 
 
1,261,607 
1,089,675 
Current tax assets 
22 
10,004 
2,059 
Other current financial assets 
18 
58,200 
54,213 
Current derivatives 
19 
11,311 
- 
Cash and cash equivalents 
 
328,570 
767,152 
Total current assets 
 
1,786,808 
1,958,566 
Total assets 
 
12,661,960 
11,262,080 
Equity and Liabilities 
 
 
 
Equity 
 
 
 
Capital and reserves 
 
3,568,270 
3,404,605 
Capital 
 
270,540 
270,540 
Reserves  
 
2,763,196 
2,598,060 
Own shares (-) 
 
(36,504) 
(21,303) 
Profit attributable to the Parent 
 
718,040 
704,558 
Interim dividend (-) 
 
(147,002) 
(147,250) 
Valuation adjustments 
 
(52,466) 
(44,071) 
Financial assets at fair value through other comprehensive income 
 
24,604 
15,063 
Hedging transactions 
 
(82,699) 
(62,237) 
Translation differences 
 
5,629 
3,103 
Equity attributable to the Parent 
 
3,515,804 
3,360,534 
Non-controlling interests 
 
98,630 
832 
Total equity 
13 
3,614,434 
3,361,366 
Non-current liabilities 
 
 
 
Grants and other 
14 
705,762 
631,410 
Non-current provisions 
15 
151,406 
127,541 
Non-current financial liabilities 
18 
5,318,760 
4,981,234 
Loans and borrowings, bonds and other marketable securities 
 
5,258,474 
4,980,757 
Other non-current financial liabilities 
 
60,286 
477 
Deferred tax liabilities 
22 
456,255 
473,125 
Non-current derivatives  
19 
48,266 
39,944 
Other non-current liabilities 
16 
94,902 
83,068 
Total non-current liabilities 
 
6,775,351 
6,336,322 
Current liabilities 
 
 
 
Current provisions 
15 
27,345 
- 
Current financial liabilities 
18 
1,842,891 
1,196,870 
Loans and borrowings, bonds and other marketable securities 
 
1,194,335 
562,328 
Other current financial liabilities 
 
648,556 
634,542 
Trade and other payables 
20 
396,943 
367,522 
Suppliers 
 
311,879 
313,759 
Other payables 
 
61,490 
50,278 
Current tax liabilities 
22 
23,574 
3,485 
Current derivatives 
19 
4,996 
- 
Total current liabilities 
 
2,272,175 
1,564,392 
Total equity and liabilities 
 
12,661,960 
11,262,080 
The Group has applied IFRS 16 at 1 January 2019, and IFRS 15 and IFRS 9 at 1 January 2018. Given the transition method selected, the comparative information has not 
been restated. 
Notes 1 to 34 and Appendix I form an integral part of these consolidated annual accounts.

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 2 of 87  
 
Red Eléctrica Group 
Consolidated Income Statement. 2019  
 
Thousands of Euros 
Note 
31/12/2019 
31/12/2018 
Revenue 
23.a 
2,007,240 
1,948,540 
Self-constructed assets 
6 and 7 
60,083 
62,027 
Share of profit of equity-accounted investees (with a similar activity to that of 
the Group) 
10 
7,606 
6,966 
Supplies 
23.c 
(34,503) 
(37,725) 
Other operating income  
23.b 
19,771 
12,696 
Personnel expenses 
23.d 
(160,130) 
(151,848) 
Other operating expenses 
23.c 
(317,649) 
(300,987) 
Depreciation and amortisation 
6, 7 and 
9 
(525,529) 
(480,753) 
Non-financial and other capital grants 
14 
25,724 
23,445 
Impairment and losses on disposal of fixed assets 
7 
(1,258) 
(12,568) 
Results from operating activities 
 
1,081,355 
1,069,793 
Finance income 
23.e 
12,817 
10,670 
Finance costs 
23.e 
(145,927) 
(144,063) 
Exchange losses 
 
(890) 
(148) 
Impairment and gains/(losses) on disposal of financial instruments  
 
1 
- 
Net finance cost 
 
(133,999) 
(133,541) 
Share of profit of equity-accounted investees 
10 
1,369 
- 
Profit before tax 
 
948,725 
936,252 
Income tax 
22 
(230,234) 
(231,763) 
Consolidated profit for the year 
 
718,491 
704,489 
A) Consolidated profit for the year attributable to the Parent 
 
718,040 
704,558 
B) Consolidated profit/(loss) for the year attributable to non-controlling 
interests 
 
451 
(69) 
Earnings per share in Euros 
 
 
 
Basic earnings per share in Euros 
32 
1.33 
1.31 
Diluted earnings per share in Euros 
32 
1.33 
1.31 
 
Notes 1 to 34 and Appendix I form an integral part of these consolidated annual accounts.

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 3 of 87  
 
Red Eléctrica Group 
Consolidated Statement Of Comprehensive Income. 2019  
 
Thousands of Euros 
31/12/2019 31/12/2018 
A) Consolidated profit for the year (income statement) 
718,491 
704,489 
B) Other comprehensive income – Items that will not be reclassified to profit or loss: 
(735) 
2,089 
1. Revaluation/(reversal) of PPE and intangible assets 
-  
-  
2. Actuarial gains and losses (note 15) 
(13,701) 
3,280 
3. Share of other comprehensive income from investments in joint ventures and associates 
-  
-  
4. Equity instruments through other comprehensive income (note 18) 
9,541 
(1,501) 
5. Other income and expense that will not be reclassified to profit or loss 
 
 
6. Tax effect 
3,425 
310 
C) Other comprehensive income – Items that could be reclassified to profit or loss: 
(18,888) 
20,428 
1. Cash flow hedges: 
(12,944) 
6,932 
a) Revaluation gains/(losses) 
(17,918) 
2,415 
b) Amounts transferred to the income statement 
4,974 
4,517 
c) Amounts transferred to initial value of hedged items 
-  
-  
d) Other reclassifications 
-  
-  
2. Translation differences: 
2,188 
7,235 
a) Revaluation gains/(losses) 
2,188 
7,235 
b) Amounts transferred to the income statement 
-  
-  
c) Other reclassifications 
-  
-  
3. Share of other comprehensive income from investments in joint ventures and 
associates: 
(10,757) 
9,803 
a) Revaluation gains/(losses) 
(10,757) 
9,803 
b) Amounts transferred to the income statement 
-  
-  
c) Other reclassifications 
-  
-  
4. Debt instruments at fair value through other comprehensive income: 
-  
-  
a) Revaluation gains/(losses) 
-  
-  
b) Amounts transferred to the income statement 
-  
-  
c) Other reclassifications 
-  
-  
5. Other income and expense that could subsequently be reclassified to profit or loss: 
-  
-  
a) Revaluation gains/(losses) 
-  
-  
b) Amounts transferred to the income statement 
-  
-  
c) Other reclassifications 
-  
-  
6. Tax effect 
2,625 
(3,542) 
Total comprehensive income for the year (A + B + C) 
698,868 
727,006 
a) Attributable to the Parent 
699,369 
727,051 
b) Attributable to non-controlling interests 
(501) 
(45) 
 
Notes 1 to 34 and Appendix I form an integral part of these consolidated annual accounts.

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
 
 
 
 
 
                  Page 4 of 87  
 
Red Eléctrica Group 
Consolidated Statement of Changes in Equity at 31 December 2019  
 
Equity / Thousands of Euros 
Note Subscribed 
capital 
Reserves 
Interim 
dividend 
Own shares 
Profit 
attributable 
to the Parent 
Valuation 
adjustments 
Equity 
attributable to 
the Parent 
Non-controlling 
interests 
Total equity 
Balances at 1 January 2019 
 
270,540 
2,598,060 
(147,250) 
(21,303) 
704,558 
(44,071) 
3,360,534 
832 
3,361,366 
I. Comprehensive income for the year 
 
-  
(10,276) 
-  
-  
718,040 
(8,395) 
699,369 
(501) 
698,868 
II. Transactions with shareholders or 
owners 
 
-  
(382,934) 
248 
(15,201) 
(147,002) 
-  
(544,889) 
-  
(544,889) 
 - Distribution of dividends 
13 
-  
(384,383) 
248 
-  
(147,002) 
-  
(531,137) 
-  
(531,137) 
 - Transactions with own shares 
13 
-  
1,449 
-  
(15,201) 
-  
-  
(13,752) 
-  
(13,752) 
III. Other changes in equity 
 
-  
558,346 
-  
-  
(557,556) 
-  
790 
98,299 
99,089 
 - Transfers between equity line items 
 
-  
557,556 
-  
-  
(557,556) 
-  
-  
-  
-  
 - Other changes 
13 
-  
790 
-  
-  
-  
-  
790 
98,299 
99,089 
Balances at 31 December 2019 
 
270,540 
2,763,196 
(147,002) 
(36,504) 
718,040 
(52,466) 
3,515,804 
98,630 
3,614,434 
Balances at 31 December 2017 
 
270,540 
2,384,396 
(137,509) 
(29,769) 
669,836 
(64,104) 
3,093,390 
59 
3,093,449 
Adjustments due to first-time application 
of IFRS 9, net of tax  
 
-  
34,551 
-  
-  
-  
-  
34,551 
-  
34,551 
Balances at 1 January 2018 
 
270,540 
2,418,947 
(137,509) 
(29,769) 
669,836 
(64,104) 
3,127,941 
59 
3,128,000 
I. Comprehensive income for the year 
 
-  
2,460 
-  
-  
704,558 
20,033 
727,051 
(45) 
727,006 
II. Transactions with shareholders or 
owners 
 
-  
(357,272) 
(9,741) 
8,466 
(137,509) 
-  
(496,056) 
-  
(496,056) 
 - Distribution of dividends 
13 
-  
(359,223) 
(9,741) 
-  
(137,509) 
-  
(506,473) 
-  
(506,473) 
 - Transactions with own shares 
13 
-  
1,951 
-  
8,466 
-  
-  
10,417 
-  
10,417 
III. Other changes in equity 
 
-  
533,925 
-  
-  
(532,327) 
-  
1,598 
818 
2,416 
 - Transfers between equity line items 
 
-  
532,327 
-  
-  
(532,327) 
-  
-  
-  
-  
 - Other changes 
 
-  
1,598 
-  
-  
-  
-  
1,598 
818 
2,416 
Balances at 31 December 2018 
 
270,540 
2,598,060 
(147,250) 
(21,303) 
704,558 
(44,071) 
3,360,534 
832 
3,361,366 
  
Notes 1 to 34 and Appendix I form an integral part of these consolidated annual accounts.

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Red Eléctrica Corporación and Subsidiaries 
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Red Eléctrica Group 
Consolidated Statement of Cash Flows. 2019 
 
Thousands of Euros 
Note 
31/12/2019 
31/12/2018 
Cash flows from operating activities 
 
1,045,157  
1,100,025  
Profit before tax 
 
948,725  
936,252  
Adjustments for: 
 
647,940  
624,907  
Depreciation and amortisation 
6, 7 and 
9 
525,529  
480,753  
Other adjustments 
 
122,411  
144,154  
Equity-accounted investees 
 
(8,975) 
(6,966) 
(Gains)/losses on disposal/impairment of non-current assets and financial 
instruments 
 
1,257  
12,568  
Accrued finance income 
23.d 
(12,817) 
(10,670) 
Accrued finance costs 
23.d 
145,927  
144,063  
Charge to/surplus provisions for liabilities and charges 
15 
22,743  
25,048  
Capital and other grants taken to income 
14 
(25,724) 
(19,889) 
Changes in operating assets and liabilities 
 
(210,374) 
(112,540) 
Changes in inventories, receivables, current prepayments and other current assets 
 
(194,867) 
(74,518) 
Changes in trade payables, current contract liabilities and other current liabilities 
 
(15,507) 
(38,022) 
Other cash flows used in operating activities: 
 
(341,134) 
(348,594) 
Interest paid 
 
(148,213) 
(150,426) 
Dividends received 
23.e 
4,848  
4,848  
Interest received 
 
6,827  
4,435  
Income tax received/(paid) 
 
(198,354) 
(205,570) 
Other proceeds from and payments for operating activities 
 
(6,242) 
(1,881) 
Cash flows used in investing activities 
 (1,373,834) 
(525,898) 
Payments for investments 
 
(1,451,064) 
(557,384) 
Property, plant and equipment, intangible assets and investment property 
6, 7 and 
9 
(519,263) 
(456,219) 
Group companies, associates and business units 
5 
(931,801) 
(101,165) 
Other financial assets 
18 
-  
-  
Proceeds from sale of investments 
 
23,651  
4,067  
Property, plant and equipment, intangible assets and investment property 
6, 7 and 
9 
1,121  
240  
Other financial assets 
18 
22,530  
3,827  
Other cash flows from investing activities 
14 
53,579  
27,419  
Other proceeds from investing activities 
14 
53,579  
27,419  
Cash flows used in financing activities 
 
(110,219) 
(377,582) 
Proceeds from and payments for equity instruments 
13 
(13,753) 
10,417  
Acquisition 
 
(86,202) 
(44,675) 
Disposal 
 
72,449  
55,092  
Proceeds from and payments for financial liability instruments 
18 
451,238  
113,211  
Issue and drawdowns 
 
2,138,358  
1,398,826  
Redemption and repayment 
 
(1,687,120) 
(1,285,615) 
Dividends and interest on other equity instruments paid 
13 
(530,841) 
(495,138) 
Other cash flows used in financing activities  
 
(16,863) 
(6,072) 
Interest paid 
 
(131) 
-  
Other proceeds from and payments for financing activities 
 
(16,732) 
(6,072) 
Effect of exchange rate fluctuations on cash and cash equivalents 
 
314  
738  
Net increase/(decrease) in cash and cash equivalents 
 
(438,582) 
197,283  
Cash and cash equivalents at beginning of year 
 
767,152  
569,869  
Cash and cash equivalents at year end 
 
328,570  
767,152  
Notes 1 to 34 and Appendix I form an integral part of these consolidated annual accounts.

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Contents 
 
 
Activities of the Group Companies ................................................................................................ 8 
 Basis of Preparation of the Consolidated Annual Accounts .......................................................... 8 
 Sector Regulation ......................................................................................................................... 15 
 Significant Accounting Policies ................................................................................................... 19 
 Business Combinations ............................................................................................................... 33 
 Intangible Assets ......................................................................................................................... 36 
 Property, Plant and Equipment ................................................................................................... 39 
 Right-of-Use Assets and Lease Liabilities .................................................................................. 42 
 Investment Property ................................................................................................................... 43 
 Equity-accounted Investees ....................................................................................................... 44 
 Inventories .................................................................................................................................. 46 
 Trade and Other Receivables ...................................................................................................... 46 
 Equity .......................................................................................................................................... 47 
 Grants and Other Non-current Revenue Received in Advance ..................................................... 51 
 Non-current and Current Provisions ............................................................................................ 51 
 Other Non-current Liabilities ...................................................................................................... 53 
 Financial Risk Management Policy .............................................................................................. 54 
 Financial Assets and Financial Liabilities .................................................................................... 56 
 Derivative Financial Instruments ................................................................................................ 63 
 Trade and Other Payables ........................................................................................................... 67 
 Average Supplier Payment Period. “Reporting Requirement”, Third Additional Provision of Law 
15/2010 of 5 July 2010 .................................................................................................................. 67 
 Taxation ...................................................................................................................................... 67 
 Income and Expenses .................................................................................................................. 71 
 Transactions with Equity-accounted Investees and Related Parties .......................................... 73 
 Remuneration of the Board of Directors ..................................................................................... 75 
 Remuneration of Senior Management ......................................................................................... 78 
 Segment Reporting ..................................................................................................................... 79

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 Interests in Joint Arrangements .................................................................................................. 81 
 Guarantees and Other Commitments with Third Parties and Other Contingent Assets and 
Liabilities..................................................................................................................................... 82 
 Environmental Information ......................................................................................................... 82 
 Other Information ........................................................................................................................ 83 
 Earnings per Share ...................................................................................................................... 83 
 Share-based Payments ............................................................................................................... 84 
 Events after 31 December 2019 ................................................................................................... 84 
Appendix I: Details of equity investments at 31 December 2019 and 2018 ........................................ 85 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In order to facilitate comprehension of the information provided in this document, certain alternative performance 
measures have been included. The definition of these measures can be found at www.ree.es.

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 Activities of the Group Companies 
 
Red Eléctrica Corporación, S.A. (hereinafter the Parent or the Company) is the Parent of a Group formed by 
subsidiaries. The Group is also involved in joint operations along with other operators. The Parent and its 
subsidiaries form the Red Eléctrica Group (hereinafter the Group or Red Eléctrica Group). The Company's 
registered office is located in Alcobendas (Madrid) and its shares are traded on the Spanish automated 
quotation system as part of the selective IBEX 35 index.  
The Group's principal activity is electricity transmission, system operation and management of the 
transmission network for the Spanish electricity system. These regulated activities are carried out through 
Red Eléctrica de España, S.A.U. (hereinafter REE).  
The Group also conducts electricity transmission activities outside Spain through Red Eléctrica Internacional, 
S.A.U. (hereinafter REI) and its investees. Furthermore, the Group provides telecommunications services to 
third parties through Red Eléctrica Infraestructuras de Telecomunicación, S.A.U. (hereinafter REINTEL), 
essentially via dark fibre backbone network rental, and through the HISPASAT Group, by means of satellite 
infrastructure operation. 
In addition the Group carries out activities through its subsidiaries aimed at financing its operations and 
covering risks by reinsuring its assets and activities. It also develops and builds electricity infrastructure and 
facilities through its subsidiaries and/or investees, Red Eléctrica Infraestructuras en Canarias, S.A.U. 
(REINCAN) and Interconexión Eléctrica Francia-España, S.A.S. (INELFE). Moreover, the Group carries out 
activities aimed at driving and fostering technological innovation through its subsidiary Red Eléctrica y de 
Telecomunicaciones, Innovación y Tecnología, S.A.U. (RETIT). 
Appendix I provides details of the activities and registered offices of the Parent and its subsidiaries, as well 
as the direct and indirect investments held by the Parent in the subsidiaries. 
 Basis of Preparation of the Consolidated Annual Accounts 
 General information 
The accompanying consolidated annual accounts have been prepared by the directors of the Parent to give a 
true and fair view of the consolidated equity and consolidated financial position of the Company and its 
subsidiaries at 31 December 2019, as well as the consolidated results of operations and consolidated cash 
flows and changes in consolidated equity for the year then ended. 
The accompanying consolidated annual accounts, authorised for issue by the Company's directors at their 
board meeting held on 25 February 2020, have been prepared on the basis of the individual accounting records 
of the Company and the other Group companies, which together form the Red Eléctrica Group (see Appendix 
I). Each company prepares its annual accounts applying the accounting principles and criteria in force in its 
country of operations. Accordingly, the adjustments and reclassifications necessary to harmonise these 
principles and criteria with International Financial Reporting Standards as adopted by the European Union 
(IFRS-EU) have been made on consolidation. The accounting policies of the consolidated companies are 
changed when necessary to ensure their consistency with the principles adopted by the Company. 
The consolidated annual accounts for 2018 were approved by the shareholders at their general meeting held 
on 22 March 2019. The consolidated annual accounts for 2019 are currently pending approval by the 
shareholders. However, the directors of the Company consider that these consolidated annual accounts will 
be approved with no changes. 
These consolidated annual accounts have been prepared on the historical cost basis, except in the case of 
financial assets measured at fair value through other comprehensive income, financial assets at fair value 
through profit or loss, financial instruments at fair value through profit or loss and business combinations.

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Red Eléctrica Corporación and Subsidiaries 
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The figures disclosed in the consolidated annual accounts are expressed in thousands of Euros, the Parent’s 
functional and presentation currency, rounded off to the nearest thousand. The consolidated annual accounts 
have been prepared in accordance with IFRS-EU, and other applicable provisions in the financial reporting 
framework. 
The Group has not omitted any mandatory accounting principle with a significant effect on the consolidated 
annual accounts. 
 New IFRS-EU and IFRIC 
The consolidated annual accounts have been prepared in accordance with IFRS-EU. 
The following standards and amendments have been applied for the first time in 2019: 
 
Effective from: 
New requirements or amendments 
1 January 2019 
New standards and interpretations 
• 
IFRS 16 Leases 
• 
IFRIC 23 Uncertainty over Income Tax Treatments 
Amendments 
• 
Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28) 
• 
Prepayment Features with Negative Compensation (Amendments to IFRS 9) 
• 
Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) 
• 
Annual Improvements to IFRS Standards 2015–2017 Cycle - various standards 
 
The new standards and interpretations issued are as follows: 
• IFRS 16 Leases 
IFRS 16 Leases replaces IAS 17, IFRIC 4, SIC-15 and SIC-27 and establishes principles for the recognition of 
leases under a single balance sheet model for all leases. IFRS 16 entered into force on 1 January 2019 and 
was not adopted early. 
IFRS 16 requires that lessees recognise an asset for the right to use the underlying asset and a financial 
liability at the present value of the remaining lease payments on the consolidated statement of financial 
position. This asset will be depreciated over the remaining contract term and a finance cost will be 
recognised by discounting the lease liability. Lessor accounting under this standard remains substantially 
unchanged and leases will continue to be classified as operating or finance leases, based on the degree to 
which they transfer substantially the risks and rewards incidental to ownership. 
In applying this standard, the Group has made the following estimates: 
o The standard has been applied to leases with an underlying asset of more than US Dollars 5,000 
(approximately Euros 4,500 euros) and an estimated life of more than 12 months. 
o At the date of first-time application, 1 January 2019, the Group has not reassessed whether the 
contracts are, or contain, a lease, and the standard has been applied to contracts that were previously 
classified as such. 
o The Group has applied the modified retrospective approach, whereby the comparative figures for the 
prior period are not restated, and the initial value of the asset is therefore equal to the lease liability at 
1 January 2019 for all lease contracts. 
o A lessee incremental effective borrowing rate of between 0.60% and 7.38% has been applied, based on 
the country and contract term. 
The impact of the first-time application of IFRS 16 at 1 January 2019 has entailed an increase of Euros 11,376 
thousand in non-current assets, reflecting the right to use assets under leases (see note 7). Non-current

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Red Eléctrica Corporación and Subsidiaries 
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and current liabilities have also increased, in amounts of Euros 6,381 thousand and Euros 4,995 thousand, 
respectively. 
Thousands of Euros 
 
 
 
Consolidated statement of financial position  
31/12/2018 
01/01/2019 
Variation 
Non-current assets  
9,303,514 
9,314,890 
11,376 
Current assets 
1,958,566 
1,958,566 
- 
Total assets 
11,262,080 
11,273,456 
11,376 
Equity  
3,361,366 
3,361,366 
- 
Non-current liabilities 
6,336,322 
6,342,703 
6,381 
Current liabilities 
1,564,392 
1,569,387 
4,995 
Total equity and liabilities 
11,262,080 
11,273,456 
11,376 
 At 31 December 2019 non-current assets are up Euros 16,821 thousand on the prior year (see note 8).  
Details of changes in the Group’s accounting principles due to the application of this standard are provided 
in note 4. 
• IFRIC 23 Uncertainty over Income Tax Treatments 
The interpretation provides requirements that add to the requirements in IAS 12 Income Taxes by 
specifying how to reflect the effects of uncertainty in accounting for income tax. This interpretation 
clarifies how to apply the recognition and measurement requirements in IAS 12 when there is uncertainty 
over the accounting treatment. This interpretation is applicable for annual periods beginning on or after 1 
January 2019 and has not had a significant impact on the Group’s consolidated financial statements (see 
note 15). 
The entry into force of the remaining standards has not had a significant impact on the Group’s consolidated 
financial statements. 
• New requirements or amendments effective as of 1 January 2020 
The new standards approved for which application is not mandatory in 2019 but which will enter into force 
for annual periods beginning on or after 1 January 2020 are as follows: 
Effective from: 
New requirements or amendments 
1 January 2020 
• Amendments to References to the Conceptual Framework in IFRS Standards 
1 January 2020 
• Definition of Material 
Pending adoption by the 
EU 
• IFRS 17 Insurance Contracts 
• Amendments to the Definition of Material 
• IBOR reform 
 
With regard to the IBOR reform, the Group has various hedging relationships to hedge interest rate risk, 
using derivatives and underlyings whose benchmark rate is the EURIBOR/LIBOR. No hedging relationships 
have been affected thus far, and moreover, the Company is only minimally exposed to intraday benchmark 
interest rates (EONIA). These benchmark interest rates are undergoing a reform on a global scale, although 
this is not expected to affect the long-term hedging relationships currently in place. The Group has adopted 
a proactive stance with respect to this process, carrying out its monitoring and analysis sufficiently in 
advance to prevent any negative impacts that may arise. On this basis, the benchmark interest rate reform 
is not expected to have a significant impact on the Group’s financial statements.

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Red Eléctrica Corporación and Subsidiaries 
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 Estimates and assumptions 
The preparation of the consolidated annual accounts in accordance with IFRS-EU requires Group management 
to make judgements, estimates and assumptions that affect the application of accounting standards and the 
amounts of assets, liabilities, income and expenses. Estimates and judgements are assessed continually and 
are based on past experience and other factors, including expectations of future events that are considered 
reasonable given the circumstances. Actual results could differ from these estimates. 
The consolidated annual accounts for 2019 occasionally include estimates calculated by management of the 
Group and of the consolidated companies, and subsequently endorsed by their directors, to quantify certain 
assets, liabilities, income, expenses and commitments disclosed therein. 
These estimates are essentially as follows: 
• Estimated asset recovery, calculated by determining the recoverable amount thereof. The recoverable 
amount is understood to be the higher of fair value less costs to sell and value in use. Asset impairment is 
generally calculated using discounted cash flows based on financial projections used by the Group. The 
discount rate applied is the weighted average cost of capital, taking into account the country risk premium 
(see note 7). 
• Estimated useful lives of property, plant and equipment (see note 4.b). 
• The assumptions used in the actuarial calculations of liabilities and obligations to employees (see note 15). 
• The assumptions used to calculate the fair value of derivatives (see note 19). 
• The assumptions used to calculate the fair value of assets and liabilities acquired in a business 
combination (see note 5). 
• Liabilities are generally recognised when it is probable that an obligation will give rise to an indemnity or a 
payment. The Group assesses and estimates amounts to be settled in the future, including additional 
amounts for income tax, contractual obligations, pending lawsuit settlements and other liabilities. These 
estimates are subject to the interpretation of existing facts and circumstances, projected future events 
and the estimated financial effect of those events (see note 15). 
In the absence of International Financial Reporting Standards (IFRSs) that give guidance on the accounting 
treatment for a particular situation, in accordance with IAS 8, management uses its best judgement based on 
the economic substance of the transaction and considering the most recent pronouncements of other 
standard-setting bodies that use the same conceptual framework as IFRS. Accordingly, as tax credits for 
investments are not within the scope of IAS 12 and IAS 20, after analysing the related facts and circumstances, 
Group management has considered that credits for investments granted to the Group by public entities are 
similar to capital grants. Therefore, in these cases management has taken into account IAS 20 on government 
grants (see note 4j). 
To facilitate comprehension of the consolidated annual accounts, details of the different estimates and 
assumptions are provided in each separate note. 
The Company has taken out insurance policies to cover the risk of possible claims that might be lodged by 
third parties in relation to its activities. 
Although estimates are based on the best information available at 31 December 2019, future events may 
require increases or decreases in these estimates in subsequent years, which would be accounted for 
prospectively in the corresponding consolidated income statement as a change in accounting estimates, as 
required by IFRS. 
 Consolidation principles 
The types of companies included in the consolidated Group and the consolidation method used in each case 
are as follows:

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Red Eléctrica Corporación and Subsidiaries 
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• Subsidiaries 
Subsidiaries are entities, including structured entities, over which the Company, either directly or indirectly 
through subsidiaries, exercises control. The Company controls a subsidiary when it is exposed, or has 
rights, to variable returns from its involvement with the subsidiary and has the ability to affect those 
returns through its power over the subsidiary. The Company has power over a subsidiary when it has 
existing substantive rights that give it the ability to direct the relevant activities. The Company is exposed, 
or has rights, to variable returns from its involvement with the subsidiary when its returns from its 
involvement have the potential to vary as a result of the subsidiary’s performance. 
A structured entity is an entity that has been designed so that voting or similar rights are not the dominant 
factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks 
only and the relevant activities are directed by means of contractual arrangements. 
The income, expenses and cash flows of subsidiaries are included in the consolidated annual accounts 
from the date of acquisition, which is when the Group takes control, until the date that control ceases. 
Transactions and balances with Group companies and unrealised gains or losses have been eliminated on 
consolidation. Nevertheless, unrealised losses have been considered as an indicator of impairment of the 
assets transferred. 
• Joint arrangements 
Joint arrangements are those in which there is a contractual agreement to share the control over an 
economic activity, in such a way that decisions about the relevant activities require the unanimous consent 
of the Group and the remaining venturers or operators. The existence of joint control is assessed 
considering the definition of control over subsidiaries. 
The Group assesses all the facts and circumstances relating to each joint arrangement for the purpose of 
its classification as a joint venture or joint operation, including whether the arrangement contains rights 
over the assets and obligations for liabilities. 
In joint operations there is a joint arrangement whereby the parties that have joint control have rights to 
the assets, and obligations for the liabilities, relating to the arrangement. For joint operations, the Group 
recognises the assets, including its share of any assets held jointly, the liabilities, including its share of any 
liabilities incurred jointly with the other operators, the revenue from the sale of its share of the output 
arising from the joint operation, and the expenses, including its share of any expenses incurred jointly, in 
the consolidated annual accounts. 
Joint ventures are those in which there is a contractual agreement with a third party to share control over 
an activity and the strategic financial and operating decisions relating to the activity require the unanimous 
consent of all the venturers that share control. The Group's interests in jointly controlled entities are 
accounted for using the equity method in accordance with IFRS 11. 
The Group's acquisition of an initial and subsequent share in a joint operation that is a business, is 
recognised following the same criteria used for business combinations, at the percentage of ownership of 
each individual asset and liability. However, in subsequent acquisitions of additional shares in a joint 
operation, the previous share in each asset and liability is not subject to revaluation. 
In sales or contributions by the Group to the joint operation, it recognises the resulting gains and losses 
only to the extent of the other parties’ interests in the joint operation. When such transactions provide 
evidence of a reduction in net realisable value or an impairment loss of the assets transferred, such losses 
are recognised in full. 
In purchases by the Group from a joint operation, it only recognises the resulting gains and losses when it 
resells the acquired assets to a third party. However, when such transactions provide evidence of a 
reduction in net realisable value or an impairment loss of the assets, the Group recognises its entire share 
of such losses.

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Red Eléctrica Corporación and Subsidiaries 
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• Associates  
Associates are entities over which the Company, either directly or indirectly through subsidiaries, 
exercises significant influence. Significant influence is the power to participate in the financial and 
operating policy decisions of the investee but is not control or joint control over those policies. The 
existence of potential voting rights that are exercisable or convertible at the end of each reporting period, 
including potential voting rights held by the Group or other entities, are considered when assessing 
whether an entity has significant influence. 
Investments in associates are accounted for using the equity method from the date that significant 
influence commences until the date that significant influence ceases. However, if on the acquisition date 
all or part of the investment qualifies for recognition as non-current assets or disposal groups held for sale, 
it is recognised at fair value less costs of disposal. 
Investments in associates are initially recognised at cost of acquisition, including any cost directly 
attributable to the acquisition and any consideration receivable or payable contingent on future events or 
on compliance with certain conditions. Any excess of the cost of the investment over the Group’s share of 
the net fair value of the associate’s identifiable net assets at the acquisition date is recognised as goodwill 
under equity-accounted investees in the consolidated statement of financial position. Any excess of the 
Group’s share of the net fair value of the associate’s identifiable net assets over the cost of the investment 
at the acquisition date (bargain purchase) is recognised as income in the period in which the investment is 
acquired. 
The Group classifies the profit or loss of these companies in results from operating activities when the 
entity’s activity is similar to the Group’s operating activities. Conversely, when their activity is different, the 
profit or loss of these companies is classified outside results from operating activities. The Group 
considers that the activity of Hisdesat cannot be deemed commercially similar to the satellite capacity 
lease activity performed by the Group, in view of the operational restrictions of its assets. 
Appendix I provides details of the Company's subsidiaries, joint arrangements, joint ventures and associates, 
as well as the consolidation or measurement method used in preparing the accompanying consolidated annual 
accounts and other relevant information. 
The financial statements of the subsidiaries, joint arrangements, joint ventures and associates used in the 
consolidation process have the same reporting date and refer to the same period as those of the Parent. 
The operations of the Company and its subsidiaries have been consolidated applying the following basic 
principles: 
• The accounting principles and criteria used by the Group companies have been harmonised with those 
applied by the Parent. 
• Translation of foreign operations: 
o Balances in the financial statements of foreign companies have been translated using the closing 
exchange rate for assets and liabilities, the average exchange rate for income and expenses and the 
historical exchange rate for capital and reserves. 
o All resulting exchange differences are recognised as translation differences in other comprehensive 
income. 
o These criteria are also applicable to the translation of the financial statements of equity-accounted 
investees, with translation differences attributable to the Group recognised in other comprehensive 
income. 
• All balances and transactions between fully consolidated companies have been eliminated on 
consolidation. 
• Margins on invoices between Group companies for capitalisable goods or services were eliminated at the 
transaction date.

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Red Eléctrica Corporación and Subsidiaries 
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 Non-controlling interests 
Non-controlling interests in subsidiaries are recognised at the acquisition date at the proportional part of the 
fair value of the identifiable net assets. Non-controlling interests are disclosed in consolidated equity 
separately from equity attributable to shareholders of the Company. Non-controlling interests’ share in 
consolidated profit or loss for the year and in consolidated comprehensive income for the year is disclosed 
separately. 
Transactions with non-controlling interests are recognised as transactions with equity holders of the Group. 
As such, the difference between the consideration paid in the acquisition of a non-controlling interest and the 
corresponding proportion of the carrying amount of the subsidiary's net assets is recognised in equity. 
Similarly, the gains or losses on disposal of non-controlling interests are also recognised in the Group's equity.   
 Comparative information 
Group management has included comparative information for 2018 in the accompanying consolidated annual 
accounts. As required by IFRS-EU, these consolidated annual accounts for 2019 include comparative figures 
for the prior year. 
The consolidated financial statements for 2019 are not comparable with those for the 2018 period as a result 
of the application of IFRS 16 from 1 January 2019 onwards (see note 2b). 
 Changes in the consolidated Group 
The changes in the consolidated Group in 2019 are as follows: 
• Red Eléctrica del Norte Perú, S.A.C. (REDELNOR) was incorporated on 11 January 2019 and is wholly owned 
by REI. The statutory activity of the new company consists of electricity transmission and maintenance 
activities on the Carhuaquero - Cajamarca Norte - Caclic - Moyobamba line. This company is fully 
consolidated. 
• On 6 June 2019 the Spanish company Red Eléctrica y de Telecomunicaciones, Innovación y Tecnología, S.A. 
(RETIT) was incorporated. This company's statutory and principal activity consists of driving and fostering 
technological innovation. This company is wholly owned by Red Eléctrica Corporación and will be fully 
consolidated. 
• On 18 July 2019 the Peruvian company Concesionaria Línea de Transmisión CCNCM, S.A. (hereinafter 
CCNCM) was acquired. The company's statutory and principal activity consists of electricity transmission 
and maintenance activities on the Carhuaquero - Cajamarca Norte - Caclic - Moyobamba line and related 
substations in Peru. This company is wholly owned by REDELNOR and will be fully consolidated (see note 
5). 
• On 3 October 2019 Hispasat, S.A. and its subsidiaries were acquired. The company’s statutory and principal 
activity consists of commercialising and rendering satellite telecommunications services. Red Eléctrica 
Sistemas de Telecomunicación, S.A. (RESTEL) holds an 89.68% interest in this company. All of the Hispasat 
Group companies are fully consolidated, except for Hisdesat Servicios Estratégicos, S.A. and Grupo de 
Navegación Sistemas y Servicios, S.L., which are accounted for using the equity method (see note 5). 
The changes in the consolidated Group in 2018 were as follows: 
• Transmisora Eléctrica del Sur 4, S.A. (TESUR 4) was incorporated on 3 January 2018 and is wholly owned by 
the Red Eléctrica Group company REDESUR. The statutory activity of the new company is the construction, 
operation and maintenance of the Tintaya‐Azángaro (Peru) transmission line under concession. This 
company is fully consolidated. 
• Red Eléctrica Sistemas de Telecomunicaciones S.A.U. (RESTEL) was incorporated on 27 February 2018 and 
is wholly owned by Red Eléctrica Corporación S.A. Its statutory activity includes the acquisition, holding, 
management and administration of securities. This company is fully consolidated.

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Red Eléctrica Corporación and Subsidiaries 
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• The Chilean company Red Eléctrica del Norte Dos S.A. (REDENOR 2) was incorporated on 3 July 2018 and is 
wholly owned by Red Eléctrica Chile. Its statutory activity is its involvement in electricity transmission and 
transportation activities. This company is fully consolidated. 
• The acquisition of 100% of the Chilean company Centinela Transmisión S.A. (which changed its name to 
Katari Transmisión S.A. (KATARI)) for US Dollars 117.2 million was executed on 12 September 2018. This 
company’s statutory and principal activity is electricity transmission and transportation. The company 
operates a 265 km circuit made up of three 220 kV lines in Chile’s northern Antofagasta Region. This 
company was absorbed by REDENOR 2 on 31 October 2018 (see note 5). 
 Sector Regulation 
 Spanish electricity sector 
Electricity Industry Law 24/2013 of 26 December 2013 has a two-fold objective. On the one hand, it aims to 
compile into a single piece of legislation all of the statutory provisions introduced by the different regulations 
published to reflect the fundamental changes occurring in the electricity sector since Law 54/1997 came into 
force. On the other, it intends to provide measures to guarantee the long-term financial sustainability of the 
electricity sector, with a view to ensuring the structural balance between the system's revenues and costs. 
Law 24/2013 also reviews the set of provisions that made up Law 54/1997, in particular those concerning the 
remit of the General State Administration, the regulation of access and connection to the networks, the 
penalty system, and the nomenclature used for the tariffs applied to vulnerable consumers and those still 
availing of the regulated tariff.  
With respect to regulation of the activities conducted by the Group, Law 24/2013 maintains REE’s appointment 
as the sole transmission agent and system operator, as well as assigning it the role of transmission network 
manager. Furthermore, Law 24/2013 upholds the current corporate structure for these activities since it does 
not repeal the twenty-third additional provision of Law 54/1997. This provision makes specific reference to the 
Group’s Parent, Red Eléctrica Corporación, S.A., and assigns to the subsidiary Red Eléctrica de España, S.A.U. 
the functions of sole transmission agent, system operator and transmission network manager, the latter 
activity being conducted through a specific organisational unit that is sufficiently segregated from the 
transmission activity for accounting and functional purposes. 
Other relevant aspects of the regulation, pursuant to Law 24/2013, of the activities performed by the Group 
are as follows: 
• This Law acknowledges the natural monopoly in the transmission activity, arising from the economic 
efficiency afforded by a sole grid. Transmission is liberalised by granting widespread third-party access to 
the network, which is made available to the different electricity system agents and consumers in exchange 
for payment of an access charge.  
The remuneration for this activity is set by the government based on the general principles defined in the 
Law and, until 2019, on the method set forth in Royal Decree 1047/2013 of 27 December 2013, which sets out 
the methodology for calculating the remuneration for electricity transmission activities. However, due to 
the change in remit introduced through Royal Decree-Law 1/2019, on urgent measures to adapt the powers 
of the Spanish National Markets and Competition Commission (CNMC) to the requirements of Community 
law in respect of Directives 2009/72/EC and 2999/73/EC of the European Parliament and of the Council of 
13 July 2009, concerning common rules for the internal market in electricity and natural gas, respectively, 
for the new regulatory period commencing in 2020 this methodology is set forth in CNMC Circular 5/2019 
of 5 December 2019, which defines the methodology for calculating the remuneration for electricity 
transmission activities. 
The remuneration model in force for the transmission activity until 2019 is completed with Ministry of 
Industry, Energy and Tourism Order IET/2659/2015 of 11 December 2015, approving the standard facilities 
and benchmark unit values for investment, operation and maintenance per asset that are to be used in

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calculating the remuneration allocable to companies that own electricity transmission facilities, and with 
the publication in 2016 of various resolutions required for effective implementation of the Order.  
In recent years, the regulator has questioned the use of certain remuneration parameters included in the 
new remuneration model for transmission activities that has been in force since 2016. The Group 
understands that these concepts should not be reviewed and has therefore filed the pertinent appeals. 
For the 2020-2025 regulatory period, the remuneration methodology set forth in Circular 5/2019 is 
completed with Circular 2/2019, which defines the methodology for calculating the financial rate of return 
for electricity transmission and distribution, regasification, and natural gas transmission and distribution, 
and Circular 7/2019, approving the standard facilities and benchmark unit values for operation and 
maintenance per asset that are to be used in calculating the remuneration allocable to companies that own 
electricity transmission facilities. This Circular provides that the benchmark unit values for investment 
that were in force in the previous regulatory period, and which are set forth in the aforementioned Ministry 
of Industry, Energy and Tourism Order IET/2659/2015, be extended to cover the 2020-2025 period. 
• As electricity system operator, the Company's main function is to guarantee the continuity and security of 
the electricity supply, as well as to ensure the correct coordination of the production and transmission 
system, exercising its duties in cooperation with the operators and agents of the Spanish electricity market 
(MIBEL) while observing the principles of transparency, objectivity and independence. Law 24/2013 also 
bestows upon the system operator the role of transmission network manager. 
As provided in article 31.1 of the aforementioned law, the Ministry shall assign the role of transmission 
network manager for the Spanish electricity system to Red Eléctrica following certification by the CNMC, 
and the European Commission shall be notified in order for such assignment to be published in the Official 
Journal of the European Union. In 2015 the certification process for Red Eléctrica as transmission network 
manager for the Spanish electricity system, as envisaged in the law, was completed following publication 
in the Official Journal of the European Union of 12 February 2015 of the Notification of the Spanish 
Government regarding the designation of Red Eléctrica de España, S.A.U. as transmission system operator 
in Spain. Under this assignment, Red Eléctrica de España, S.A.U. operates on an ownership unbundling 
basis as stipulated in article 9 of the old Directive 2009/72/EC, and reiterated in article 43 of the new 
Directive 2019/944 on common rules for the internal market for electricity. 
Red Eléctrica is also responsible for the functions of settlement, notification of payments and receipts, 
and management of guarantees relating to security of supply and the effective diversion of units generated 
and consumed, as well as for short-term energy exchanges aimed at maintaining the quality and security 
of supply. 
Furthermore, Red Eléctrica manages the technical and economic dispatch for electricity supply from non-
mainland electricity systems (Balearic Islands, Canary Islands, Ceuta and Melilla), and is responsible for the 
settlements of payments and receipts arising from the economic dispatch of electricity generated by these 
systems. 
Until the publication of CNMC Circular 4/2019 of 3 December 2019, defining the remuneration methodology 
for the system operator from 1 January 2020 onwards, the remuneration received by Red Eléctrica de 
España for the system operation activity was set by the Ministry for the Ecological Transition and 
Demographic Challenge at its own discretion. Circular 4/2019 defines a remuneration methodology for this 
activity for the first time, and aims to establish remuneration that is appropriate for a low-risk activity, 
considering those costs prudently incurred by an efficient and well-managed company. 
Regarding Red Eléctrica's remit in the non-mainland electricity systems, in 2015 the Chira-Soria 200 MW 
reversible hydroelectric power plant project in Gran Canaria was transferred to the system operator, as 
stipulated in Order IET/728/2014 of 28 April 2014. Having taken ownership, in 2016 Red Eléctrica submitted 
a project amending the initial project, which included technical and environmental improvements aimed at 
increasing the capacity for integrating renewable energy and reducing the impact of this new 
infrastructure on the environment. In 2016 the Canary Islands government declared the new project to be 
of strategic interest, and it has been undergoing administrative processing since then.

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The main impacts of the new Circulars approved at the end of 2019 will be seen from 2020 onwards.  
 International electricity sector 
The Red Eléctrica Group has built and acquired electricity transmission facilities through REI. At international 
level, it now operates and maintains these facilities in Peru and Chile. Various electricity transmission facilities 
were also under construction by subsidiaries of REI both in Peru and in Chile at the end of 2019. 
Electricity sector in Peru 
Peru has liberalised its electricity industry and applies a regulation model based on regulated tariffs for the 
electricity transmission activity.  
Regulation of the electricity industry in Peru is mostly set out in the Electricity Concessions Law, Decree Law 
No. 25844 enacted in 1992 and the related regulations, Supreme Decree No. 009-93-EM enacted in 1993, and 
the various amendments and/or extensions thereto, including Law No. 28832, “Law for the Efficient 
Development of Electricity Generation”, enacted in 2016, and Supreme Decree No. 027-2007-EM “Transmission 
Regulation”. 
This legislation comprises the overall legal framework that enables the State to provide special guarantees to 
concession holders and guarantee that the rates set during the term of the respective arrangements reflect 
the amounts of the economic bids presented during the process to promote private investment through which 
the projects were awarded.  
Under these conditions, the costs for investment and for operation and maintenance stipulated in the Group's 
concession arrangements are adjusted each year or when appropriate (according to the tariff regime) in line 
with the variation in the Finished Goods Less Food and Energy index published by the Bureau of Labor 
Statistics of the United States Government. 
The new rules regulating “Tariffs and Remuneration for Secondary Transmission Systems (STS) and 
Complementary Transmission Systems (CTS)” were approved through OSINERGMIN Resolution No. 217-2013-
OS/CD and amendments. These rules set forth the criteria and methodology for determining the tolls and 
remuneration for the STS and/or CTS services. 
Lastly, the “Annual Revenue Settlement Procedures for the Electricity Transmission Service” for the (i) “Pri-
mary Transmission System (PTS) and Secondary Transmission System (STS) under the BOOT Arrangement 
Model”, (ii) “Guaranteed Transmission System (GTS)” and (iii) “Complementary Transmission System (CTS)” were 
approved, respectively, through OSINERGMIN Resolutions Nos. 335-2004-OS/CD, 200-2010-OS/CD and 004-
2015-OS/CD and amendments. These rules provide for annual updates to remuneration, mainly in respect of 
the differences arising between the amounts stipulated in the concession arrangements (in US Dollars) and 
the tariff regime in Peru established in local currency (in Sols). 
Electricity sector in Chile 
The legal framework governing the electricity transmission business in Chile is contained in Decree with Force 
of Law (DFL) No. 4/2006, which sets out the revised, coordinated and systematised text of Ministry of Mining 
Decree with Force of Law (DFL) No. 1 of 1982, the General Electricity Services Law (DFL No. 1/1982) and 
subsequent amendments thereto. Such amendments include Law 19,940 (Short Law I) enacted on 13 March 
2004, Law 20,018 (Short Law II) enacted on 19 May 2005, and Law 20,257 (Generation through Non-conventional 
Renewable Energy Sources) enacted on 1 April 2008. These regulations are supplemented by the Regulation of 
the General Electricity Services Law of 1997 (Ministry of Mining Supreme Decree No. 327 of 1997) and respective 
amendments thereto, and by the Technical Standard for Safety and Quality of Service (Exempt Ministerial 
Resolution No. 40 of 16 May 2005) and subsequent amendments thereto.  
The new Transmission Law was enacted on 11 July 2016. This law provides for a new independent coordinating 
body for the National Electricity System, known as the National Electricity Coordinator (“CEN”), which 
combines the former Economic Load Dispatch Centre - Central Interconnected System (“CDEC SIC”) and the 
Economic Load Dispatch Centre - Far North Interconnection System (“CDEC SING”). It also defines a new 
electricity transmission system wherein the facilities forming part of the Backbone, Sub-transmission and 
Additional Transmission Systems were amalgamated into the National, Zonal and Dedicated Transmission

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Systems, respectively. The remuneration received by the transmission agent is calculated by applying a 
variable post-tax discount rate that ranges between a minimum of 7% and a maximum of 10%. The new law 
was effective immediately and application thereof is gradual, culminating in full application from 2020 
onwards.  
The Group’s revenue in Chile derives solely from marketing the electricity transmission capacity of its 
facilities, and only customer contracts under the regulated regime are in place. All of these are subject to 
regulated tariffs. Total revenue generated on the use of the Group’s facilities includes two general 
components: the annuity of the new investment value (“AVI”), calculated such that the present value of these 
annuities (using an annual real discount rate and the economic life of each facility) is equal to the cost of 
replacing the existing transmission facilities with new facilities having similar characteristics at current 
market prices, plus the costs of operation, maintenance and administration (“COMA”), which reflect the 
necessary costs to operate, maintain and administrate the facilities in question. The Group is entitled to 
collect a “toll” from customers, comprising “AVI+COMA”, relating to the use of its facilities. The law provides 
that such collections are an integral component of the provision of transmission services. Thus, these services 
are substantially the same and have the same pattern of transference to customers, i.e. they are satisfied 
over time with a similar measurement of progress.  
 Telecommunications 
Telecommunications in Spain 
The telecommunications sector in Spain is regulated by General Telecommunications Law 9/2014 of 9 May 
2014 (GTL), which mainly seeks to foster competition in the market and guarantee access to the networks, and 
by Royal Decree 330/2016 of 9 September 2016, on measures to reduce the actual cost of deploying high-speed 
electronic communications networks. Aforementioned Law 9/2014 is developed by Royal Decree 123/2017 of 
24 February 2017 approving the regulation on the use of public domain radio, which in turn also regulates the 
award of the right to use the orbit and spectrum resource and the permits for the land-based satellite segment 
and the related spectrum. Accordingly, REINTEL and HISPASAT have been entered on the Register of 
Electronic Communications Operators. In particular, HISPASAT has been awarded the land-based segment 
permits and the concessions to use the related radio spectrum, as well as concessions to operate various orbit 
and spectrum resources. 
The European regulatory framework comprises Directive (EU) 2018/1972 of the European Parliament and of the 
Council of 11 December 2018 establishing the European Electronic Communications Code (Recast), Directive 
2009/136/EC of the European Parliament and of the Council of 25 November 2009 (regarding users' rights) and 
Directive 2009/140/EC of the European Parliament and of the Council of 25 November 2009 (regulatory 
improvements). Based on this legislation, the General Telecommunications Law introduces measures aimed 
at creating an appropriate framework for investing in the deployment of new generation networks, thereby 
enabling operators to offer innovative services that are more technologically adapted to people's needs.  
In line with the foregoing, special note should also be taken of Directive 2014/61/EU of the European Parliament 
and of the Council of 15 May 2014 on measures to reduce the cost of deploying high-speed electronic 
communications networks, which mainly seeks to expedite implementation of the "Digital Agenda" of the 
European Union (EU) (published in May 2010). This directive was transposed by Royal Decree 330/2016 of 9 
September 2016, on measures to reduce the cost of deploying high-speed electronic communications 
networks.  
As regards competition, in accordance with the European Commission Recommendation of 9 October 2014 (on 
relevant product and service markets within the electronic communications sector susceptible to regulation 
in accordance with Directive (EU) 2018/1972), the Spanish National Markets and Competition Commission 
(CNMC) periodically defines the various telecommunications markets and assesses the existence of operators 
with sufficient market power. These tasks, which are considered in the GTL, may lead to the implementation 
of specific regulations for that market. 
To this end, and in view of recent corporate transactions in the telecommunications sector, the CNMC has 
analysed the dark fibre backbone network lease activity, concluding that the environment is sufficiently 
competitive and that this activity may therefore be conducted on a free competition basis.

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The regulation also stipulates that access to infrastructure that may be used to host public electronic 
communications networks must be guaranteed for operators of public electronic communications networks. 
In this respect, Spanish and European legislation requires owners and managers of infrastructure that may be 
used to host public high-speed electronic communications networks, and likewise parties to whom usage 
rights for such infrastructure have been granted, to address all access requests under fair and reasonable 
terms and conditions. This obligation is fulfilled in view of the nature of the dark fibre business. 
Telecommunications in America 
The Group provides services in different American countries. In most American countries, an entitlement must 
be obtained in order to provide satellite capacity to telecommunications service providers. Such entitlement 
may be in the form of permits, concessions, entry in a register or inclusion on a list of authorised satellites. 
The satellites in the fleet are duly authorised in all countries where this is required, except where there is no 
commercial interest or no satellite coverage. 
In Brazil, the Group holds rights to operate various orbit and spectrum resources, as well as a multimedia 
communications permit that entitles it to provide electronic communications services. The applicable 
legislation in this case is Resolution no. 220 of 5 April 2000 approving the Regulation on Satellite Operation 
Rights for the Transmission of Telecommunication Signals, Resolution no. 614 of 28 May 2013 approving the 
Multimedia Communications Service Regulation, and General Telecommunications Law no. 9,472 of 16 July 
1997.  
In Mexico the Group is authorised to provide wholesale satellite internet services. To this end, it holds the sole 
concession for commercial use, in accordance with the Federal Telecommunications and Broadcasting Law 
of 14 July 2014. 
In Colombia it renders satellite telecommunications services, for which it has been granted authorisation by 
the ICT Single Register of providers of telecommunications networks and services. The applicable legislation 
is essentially Law 1978 of 2019 on the modernisation of ICT, and Law 1341 of 2009 defining principles and 
concepts relating to the information society and the organisation of information and communication 
technologies.  
 Significant Accounting Policies 
The accounting principles used in preparing the accompanying consolidated annual accounts have been 
applied consistently to the reported periods presented and are as follows: 
 Business combinations 
The Group accounts for business combinations by applying the acquisition method when control is transferred 
to the Group. The acquisition date is the date on which the Group obtains control of the acquiree. The 
consideration transferred in a business combination is calculated as the sum of the acquisition-date fair 
values of the assets transferred, the liabilities incurred or assumed, the equity instruments issued and any 
consideration contingent on future events or compliance with certain conditions in exchange for control of 
the acquiree. The consideration transferred excludes any payment that does not form part of the exchange 
for the acquired business. Acquisition costs are recognised as an expense when incurred. 
At the acquisition date the Group recognises the assets acquired and liabilities assumed and any non-
controlling interest at fair value. Non-controlling interests in the acquiree are recognised at the proportionate 
interest in the fair value of the net assets acquired. These criteria are only applicable for non-controlling 
interests which grant entry into economic benefits and entitlement to the proportional part of net assets of 
the acquiree in the event of liquidation. Otherwise, non-controlling interests are measured at fair value or 
value based on market conditions. Liabilities assumed include any contingent liabilities that represent present 
obligations arising from past events for which the fair value can be reliably measured. The Group also 
recognises indemnification assets transferred by the seller at the same time and following the same 
measurement criteria as the item that is subject to indemnification from the acquiree, taking into 
consideration, where applicable, the insolvency risk and any contractual limit on the indemnity amount.

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Any excess of the consideration given, plus the value assigned to non-controlling interests, over the value of 
net assets acquired and liabilities assumed is recognised as goodwill. Any shortfall, after evaluating the 
consideration given, the value assigned to non-controlling interests, and after identifying and measuring the 
net assets acquired, is recognised separately in the consolidated income statement.  
If the business combination can only be determined provisionally the identifiable net assets are initially 
recognised at their provisional values and adjustments made during the measurement period are recognised 
as if they had been known at the acquisition date. Comparative figures for the previous year are restated 
where applicable. In any event, adjustments to provisional amounts only reflect information obtained about 
facts and circumstances that existed at the acquisition date and, if known, would have affected the 
measurement of the amounts recognised at that date. 
After a period of one year, the initial measurement is only adjusted when correcting errors. 
 Property, plant and equipment 
Property, plant and equipment primarily comprise technical electricity facilities and are measured at cost of 
production or acquisition, as appropriate, less accumulated depreciation and impairment. Property, plant and 
equipment acquired in a business combination are initially recognised at fair value.  
This cost includes the following items, where applicable: 
• Borrowing costs directly related to property, plant and equipment under construction accrued on external 
financing solely during the construction period. Nevertheless, capitalisation of borrowing costs is 
suspended when active development is interrupted for extended periods, except where a temporary delay 
is a necessary part of the process of getting an asset ready for its intended use. 
• Operating costs directly related to property, plant and equipment under construction for projects executed 
under the supervision and management of Group companies. 
• The initial estimate of the costs of decommissioning and retiring items of property, plant and equipment. 
Assets under construction (works underway) are capitalised as work in progress. Work in progress is 
transferred to property, plant and equipment in use once these items come into service and provided that the 
assets are in working condition. Property, plant and equipment under construction are not depreciated. 
After initial recognition, items of property, plant and equipment are measured on a cost basis, and recognised 
at cost less accumulated depreciation and any accumulated impairment. 
Enlargement or improvement expenses which lead to an increase in productivity or capacity and lengthen the 
useful life of the assets are stated as an increase in the carrying amount of the asset. 
Repair and maintenance costs on property, plant and equipment that do not increase productivity or capacity 
and which do not lengthen the useful life of the assets are charged directly as expenses when incurred. 
Property, plant and equipment are depreciated on a straight-line basis over the estimated useful life of the 
assets, which is the period during which the assets are expected to be used, and in any case applying the 
following ranges of depreciation rates: 
 
 
Annual depreciation rate 
Buildings 
2% - 10% 
Technical electricity facilities 
2.5% - 8.5% 
Technical telecommunications facilities (fibre optics) 
5% - 12.5%  
Technical telecommunications facilities (satellite) 
As per depreciation schedule 
Other installations, machinery, equipment, furniture and other items 
4% - 33%

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Property, plant and equipment primarily comprise technical electricity facilities. Most undepreciated items of 
property, plant and equipment are depreciated at a rate of 2.5%. The depreciation charge for each period is 
recognised in profit or loss. 
The residual values and useful lives of assets are reviewed at least annually and adjusted, if necessary, to 
reflect actual circumstances. When the carrying amount of these assets exceeds their estimated recoverable 
amount, it is immediately written down to the recoverable amount. The Group performs complementary 
analyses of these indicators in view of the entry into force of the new remuneration regime applicable to 
electricity transmission assets in Spain (see note 3). 
Recoverable amount is understood to be the higher of: 
• Fair value less costs to sell. 
• Value in use, i.e. the present value of the estimated future cash flows from continued use of the asset and 
disposal thereof. 
Government grants received in relation to the acquisition of these assets are recognised as deferred income 
and taken to the income statement over the useful lives of the assets. 
Property, plant and equipment are derecognised when retired; or when no future economic benefits are 
expected from their use or disposal. Gains or losses on disposal of an item are calculated based on the 
difference between any net proceeds from selling the asset and its carrying amount (initial cost less 
depreciation and impairment). The gains or losses are taken to profit or loss in the year when the item is 
derecognised. These gains and losses are not included within results from ordinary activities. 
The Group measures and determines impairment to be recognised or reversed in respect of the value of its 
cash-generating units (CGUs) based on the criteria in section h) of this note. 
 Intangible assets 
Intangible assets are recognised at acquisition cost, which is periodically reviewed and adjusted in the event 
of a decline in value. Amortisation for the year is expensed and determined on a straight-line basis over the 
estimated useful life allocated to each item or type of intangible asset. 
 Intangible assets include the following: 
• Goodwill 
Goodwill is determined using the same criteria as for business combinations. Goodwill is not amortised but 
is tested for impairment annually or more frequently where events or circumstances indicate that an asset 
may be impaired. After initial recognition, goodwill is measured at cost less any accumulated impairment 
losses. Internally generated goodwill is not recognised as an asset. 
• Computer software 
Licences for computer software acquired, which are capitalised on the basis of the costs incurred to 
acquire and bring the specific software to use. 
Computer software maintenance costs are charged as expenses when incurred. Computer software must 
be amortised on a straight-line basis over a period of three to five years from the date on which each 
program comes into use. 
• Development expenses 
Development expenses directly attributable to the design and execution of tests for new or improved 
computer programs that are identifiable, unique and likely to be controlled by the Group are recognised as 
intangible assets when it is probable that the project will be successful, based on its economic and 
commercial feasibility, and the associated costs can be estimated reliably. Costs that do not meet these 
criteria are charged as expenses when incurred. Development expenses are capitalised and amortised,

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from the date the associated asset comes into service, on a straight-line basis over a period of no more 
than five years. Computer software maintenance costs are charged as expenses when incurred. 
• Licences and industrial property 
Licences have a finite useful life and are recognised at acquisition cost, less accumulated amortisation 
and any impairment. Licences are amortised on a straight-line basis to allocate the cost over their 
estimated useful lives of five years.  
Industrial property is initially measured at cost of acquisition or production and is subsequently carried at 
cost less accumulated amortisation and any impairment. These assets are amortised over their useful lives 
of five years. 
• Administrative concessions 
The Group operates various assets, located mainly in Peru, under service concession contracts awarded 
by different public entities. Based on the characteristics of the contracts, the Group analyses whether they 
fall within the scope of IFRIC 12 Service Concession Arrangements. 
For concession arrangements subject to IFRIC 12, construction and other services rendered are recognised 
using the criteria applicable to income and expenses. 
The consideration received by the Group is recognised at the fair value of the service rendered, as a 
financial asset or intangible asset, based on the contract clauses. The Group recognises the consideration 
received for construction contracts as an intangible asset to the extent that it is entitled to pass on to 
users the cost of access to or use of the public service, or it has no unconditional contractual right to 
receive cash or another financial asset. 
Upon initial recognition, an intangible asset received as consideration for construction or upgrade services 
rendered is recognised at fair value. The intangible asset is subsequently recognised at cost, including 
capitalised borrowing costs, less accumulated amortisation and accumulated impairment.  
The contractual obligations assumed by the Group to maintain the infrastructure during the operating 
period, or to carry out renovation work prior to returning the infrastructure to the transferor upon expiry 
of the concession arrangement, are recognised using the accounting policy described for provisions, to 
the extent that such activity does not generate revenue. 
Concession arrangements not subject to IFRIC 12 are recognised using general criteria. 
Administrative concessions have a finite useful life and are recognised at acquisition cost, less 
accumulated amortisation and any impairment. 
Concessions are amortised on a straight-line basis over the concession period, as detailed in note 6. 
• Other intangible assets 
These primarily comprise the perpetual rights to regulated tariffs arising from the business combination. 
In light of the rights to receive perpetual income from the transmission line acquired as part of the Chilean 
National Transmission System, this asset, which was initially measured at fair value, has an indefinite 
useful life and is tested for impairment on an annual basis. 
• Intangible assets under development 
Administrative concessions at the construction stage are recognised as intangible assets under 
development and measured in line with the amount to be disbursed until completion of the works, in 
accordance with IFRIC 12. 
 Investment property 
The Group companies measure their investment property at cost of acquisition. When the carrying amount of 
these assets exceeds their estimated recoverable amount, it must be written down immediately. The market 
value of the Group's investment property is disclosed in note 9 to the consolidated annual accounts.

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Investment property, except land, is depreciated on a straight-line basis over the estimated useful life, which 
is the period during which the companies expect to use the assets. Investment property is depreciated at a 
rate of 2%. 
 Leases 
Until first-time application of IFRS 16, which came into effect as of 1 January 2019 (see note 2), the Group 
classified leases on the basis of whether the risks and rewards of ownership were substantially transferred, 
distinguishing between operating leases, wherein the lessor retained a significant portion of the risks and 
rewards of ownership of the leased asset, and finance leases, wherein the significant risks and rewards of 
ownership of the assets were transferred to the Group. Assets recognised as finance leases were presented 
in the consolidated statement of financial position based on the nature of the leased asset. 
As a result of applying IFRS 16 as of 1 January 2019, the Group assesses at the inception of a contract whether 
that contract contains a lease. A contract is or contains a lease if it conveys the right to control the use of an 
identified asset for a period of time in exchange for consideration. The period of time during which the Group 
uses an asset includes consecutive and non-consecutive periods of time. The Group only re-evaluates the 
conditions when there is an amendment to the contract. 
• Lessee 
In contracts that contain one or more lease components or non-lease components, the Group assigns the 
consideration of the contract to each lease component in accordance with the independent sale price of 
the lease component and the aggregate individual price of the non-lease components. 
Payments made by the Group that do not constitute a transfer of goods or services thereto by the lessor, 
do not constitute a separate lease component, but form part of the total consideration of the contract. 
At the commencement date of the lease the Group recognises a right-of-use asset and a lease liability. The 
right-of-use asset comprises the amount of the lease liability; any lease payments made at or before the 
commencement date, less incentives received; initial direct costs incurred; and an estimate of dismantling 
or restoration costs to be incurred, pursuant to the criteria for provisions. 
The Group measures the lease liability at the present value of the lease payments that are not paid at the 
commencement date. The Group discounts lease payments at the appropriate incremental borrowing rate, 
unless the implicit interest rate of the lessor can be determined reliably. 
Outstanding lease payments comprise fixed payments, less any incentive receivable, variable payments 
that depend on an index or rate, initially measured using the index or rate as at the commencement date, 
amounts expected to be payable by the lessee under residual value guarantees, the exercise price of 
purchase options if the lessee is reasonably certain to exercise that option, and payments of penalties for 
terminating the lease, providing the lease term reflects the lessee exercising the option to terminate the 
lease. 
The Group measures right-of-use assets at cost, less accumulated depreciation and accumulated 
impairment losses, adjusted for any remeasurement of the lease liability. 
If the contract transfers ownership of the underlying asset to the Group by the end of the lease term or if 
the cost of the right-of-use asset reflects that the Group will exercise a purchase option, the Group 
depreciates the right-of-use asset from the commencement date to the end of the useful life of the 
underlying asset. Otherwise, the Group depreciates the right-of-use asset from the commencement date 
to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. 
The Group applies the impairment criteria for non-current assets described in section 4.3 to the right-of-
use asset. 
The Group measures the lease liability by increasing the carrying amount to reflect interest on the lease 
liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying 
amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease 
payments.

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The Group recognises variable payments not included in the initial measurement of the lease liability in 
profit or loss in the period in which the event or condition that triggers those payments occurs. 
The Group recognises remeasurements of the lease liability as an adjustment to the right-of-use asset, 
until the latter is reduced to zero, after which, it is taken to profit or loss. 
The Group remeasures the lease liability by discounting the lease payments at a revised discount rate, if 
there has been a change in the lease term or a change in the assessment of an option to purchase the 
underlying asset. 
The Group remeasures the lease liability if there is a change in the amounts expected to be payable under 
a residual value guarantee or a change in the index or rate used to determine those payments, including a 
change to reflect changes in market rental rates following a market rent review. 
The Group accounts for a lease modification as a separate lease if the modification increases the scope of 
the lease by adding the right to use one or more underlying assets; and the consideration for the lease 
increases by an amount commensurate with the stand-alone price for the increase in scope and any 
appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract. 
For a lease modification that is not accounted for as a separate lease, at the effective date of the lease 
modification the Group allocates the consideration in the modified contract applying the criteria described 
above, determines the lease term of the modified lease and remeasures the lease liability by discounting 
the revised lease payments using a revised discount rate. The Group decreases the carrying amount of the 
right-of-use asset to reflect the partial or full termination of the lease for lease modifications that decrease 
the scope of the lease. The Group recognises in profit or loss any gain or loss relating to the partial or full 
termination of the lease. The Group makes a corresponding adjustment to the right-of-use asset for all 
other lease modifications. 
The Group has elected not to apply the accounting policies indicated for short-term leases and leases in 
which the value of the underlying asset is less than US Dollars 5,000 (approximately Euros 4,600). 
• Lessor 
Leases in which, upon inception, the Group transfers to third parties substantially all the risks and rewards 
incidental to ownership of the assets are classified as finance leases, otherwise they are classified as 
operating leases.   
For finance leases, the Group recognises a receivable for an amount equal to the present value of the lease 
payments plus the unguaranteed residual value, discounted at the contractual interest rate implicit in the 
lease (net investment in the lease). Initial direct costs are included in the initial measurement of the finance 
lease receivable and reduce the amount of income recognised over the lease term. Finance income is 
taken to the income statement using the effective interest method. 
The Group recognises operating lease income in income on a straight-line basis over the lease term, unless 
another systematic basis is more representative of the pattern in which benefits deriving from the leased 
asset are diminished. 
 Financial assets and financial liabilities 
Initial recognition and measurement 
Financial instruments are classified on initial recognition as a financial asset, a financial liability or an equity 
instrument in accordance with the economic substance of the contractual arrangement and the definitions of 
a financial asset, a financial liability and an equity instrument in IAS 32 Financial Instruments: Presentation. 
The Group recognises financial instruments when it becomes party to the contract or legal transaction, in 
accordance with the terms set out therein.  
A financial asset or financial liability is initially measured at its fair value plus, in the case of an item not 
measured at fair value through profit or loss, transaction costs that are directly attributable to the acquisition

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Red Eléctrica Corporación and Subsidiaries 
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or issue of the financial asset or financial liability. Trade receivables that do not contain a significant financing 
component are initially measured at their transaction price. 
Classification and subsequent measurement 
• Financial assets: 
Upon initial recognition, a financial asset is classified as measured at amortised cost, at fair value through 
other comprehensive income or at fair value through profit or loss. Assets are classified on the basis of 
the business model and contractual terms of the assets. 
A financial asset shall be measured at amortised cost if both of the following conditions are met and it is 
not measured at fair value through profit or loss: 
o The financial asset is held within a business model whose objective is to hold financial assets in order 
to collect contractual cash flows.  
o The contractual terms of the financial asset give rise on specified dates to cash flows that are solely 
payments of principal and interest on the principal amount outstanding. 
A financial asset shall be measured at fair value through other comprehensive income if both of the 
following conditions are met and it is not measured at fair value through profit or loss: 
o The financial asset is held within a business model whose objective is achieved by both collecting 
contractual cash flows and selling financial assets.  
o The contractual terms of the financial asset give rise on specified dates to cash flows that are solely 
payments of principal and interest on the principal amount outstanding. 
Upon initial recognition of an investment in an equity instrument that is not held for trading, the Group may 
make an irrevocable election to present in other comprehensive income changes in the fair value. This 
election is made on an instrument-by-instrument basis. 
All financial assets not classified as measured at amortised cost or at fair value through other 
comprehensive income as described above are measured at fair value through profit or loss. 
Financial assets shall not be reclassified after initial recognition, unless the Group changes its business 
model for managing financial assets. 
The Group classifies financial assets, excluding equity-accounted investments, into the following 
categories: 
o Amortised cost: financial assets classified under this category are subsequently measured at 
amortised cost using the effective interest method. Amortised cost is reduced for impairment losses. 
Interest income, exchange gains and losses and impairment are recognised in profit or loss. Any gains 
or losses on derecognition are recognised in the consolidated income statement. 
o Fair value through other comprehensive income: these assets are subsequently measured at fair value. 
The resulting net gain or loss is recognised in other comprehensive income. Cumulative gains or losses 
in other comprehensive income are reclassified to profit or loss upon derecognition. In the case of 
equity instruments classified in this category, gains or losses arising from changes in fair value at the 
reporting date are recognised directly in other comprehensive income and are never reclassified to 
profit or loss. 
Dividends from equity investments classified as at fair value through other comprehensive income are 
recognised in the consolidated income statement when the Company's right to receive payment is es-
tablished. 
o Fair value through profit or loss: these assets are subsequently measured at fair value. Net gains or 
losses, including any interest or dividend income, are recognised in profit or loss.

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• Financial liabilities: 
Financial liabilities, which include loans, payment obligations and similar commitments, are initially 
recognised at fair value less any transaction costs incurred. Such debt is subsequently measured at 
amortised cost, using the effective interest method, except in the case of transactions for which hedges 
have been arranged (see section n).  
Financial debt is classified under current liabilities unless the debt falls due more than 12 months after the 
reporting date, in which case it is classified as non-current. 
Derecognition 
• Financial assets: 
The Group derecognises a financial asset when the contractual rights to receive cash flows from the asset 
expire or are transferred in a transaction in which it transfers substantially all the risks and rewards of 
ownership of the financial asset or it neither transfers nor retains substantially all the risks and rewards of 
ownership and it does not retain control of the transferred assets. 
• Financial liabilities: 
The Group derecognises a financial liability when the obligation in the contract is discharged or cancelled 
or expires. The Group also derecognises a financial liability when the terms are modified and the cash flows 
of the modified liability are substantially different. In this case, a new financial liability is recognised at fair 
value, based on the new terms. Upon derecognition of a financial liability, the difference between the 
carrying amount of a financial liability extinguished and the consideration paid, including any non-cash 
assets transferred or liabilities assumed, is recognised in profit or loss. 
 Inventories  
Inventories of materials and spare parts are measured at cost of acquisition, which is calculated as the lower 
of weighted average price and net realisable value.  
The cost of acquisition comprises the purchase price, import duties and other non-recoverable taxes, as well 
as transport, handling and other costs directly attributable to the acquisition of the materials or services. 
Trade discounts, rebates and other similar items are deducted in determining the cost of acquisition. 
The cost of any financing used to acquire the inventories can be recognised as an increase in the cost of the 
inventories until the assets are substantially ready for use or sale. 
The Group assesses the net realisable value of inventories at the end of each reporting period, recognising 
impairment in the income statement when the cost exceeds market value or when it is uncertain whether the 
inventories will be used. When the circumstances that caused inventories to be written down no longer exist 
or when there is clear evidence of an increase in net realisable value because of changed economic 
circumstances, the previously recognised impairment is reversed and recognised as income. 
 Impairment 
• Financial assets 
Impairment is calculated by applying the general approach used to calculate expected credit losses on 
financial assets; except trade receivables, for which the simplified approach set out in IFRS 9 is used, 
whereby impairment is measured at an amount equal to the lifetime expected credit losses of the asset. 
In order to determine whether there has been a significant increase in credit risk of a financial asset since 
its initial recognition, or to estimate the lifetime expected credit losses of the asset, the Group considers 
all reasonable and supportable information that is relevant and available without undue cost and effort. 
This includes quantitative and qualitative information based on the experience of the Group or of other 
entities of historical credit losses, and observable market information about the credit risk of the specific 
financial instrument or similar financial instruments. The Group assumes that the credit risk of a financial 
asset has increased significantly if it is more than 30 days past due. The Group also considers that a

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financial asset is in default when it is more than 90 days past due, unless there is reasonable and supported 
information that demonstrates its recoverability. 
The Group considers that a debt instrument presents a low level of risk when its credit rating is at least 
“investment grade” at one of the prestigious rating agencies. The maximum period over which expected 
credit losses are measured is the maximum contractual period over which the Group is exposed to credit 
risk. 
IFRS 9 defines expected credit losses as the weighted average of credit losses with the respective risks of 
a default occurring as the weights. Credit losses are measured as the difference between all contractual 
cash flows that are due to an entity in accordance with the contract and all the cash flows that the entity 
expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate. 
In broad terms, expected loss is calculated as follows:  
EAD (exposure at default) x PD (probability of default) x LGD (loss given default) x DF (discount factor).  
Where EAD is the exposure to risk and is measured based on the accounting balances (outstanding 
balances receivable in the form of a cash flow or other financial asset) less any prepayments and any bank 
or other guarantees provided by the customer. PD is the probability of default. LGD is the loss that would 
be incurred in the event of debtor default and is calculated as (1 – recovery rate). The recovery rate depends 
on the specific guarantees of the receivable or loan. DF is the time value of money. 
Following a hierarchy in accordance with IFRS 13, i.e. from most observable inputs to least observable 
inputs, the following methods are used: 
o If the debtor has quoted credit default swaps (CDS), the probability of default is generally obtained from 
the CDS, as this is the most objective market credit measure of the probability of default of a company 
at a specific point in time. 
o If the debtor does not have a quoted CDS, the company’s rating from each credit rating agency that has 
issued a report is selected and used to calculate the probability of default.  
o If the debtor does not have a rating, a theoretical rating can be calculated by comparing the debtor's 
ratios with those of other companies that do have a rating. 
Provisions for impairment of financial assets measured at amortised cost are deducted from the gross 
carrying amount of these assets. 
Impairment related to trade and other receivables, including, where appropriate, contract assets under 
IFRS 15, is presented in the consolidated income statement. 
• Non-financial assets 
The Group companies analyse the recoverability of their assets at each reporting date and whenever 
events or changes in circumstances indicate that the carrying amount might not be recoverable. 
Impairment is deemed to exist when the carrying amount of an asset exceeds its recoverable amount. 
Impairment losses are recognised in the consolidated income statement. An impairment loss is the 
difference between the carrying amount of an asset and its recoverable amount. The recoverable amount 
of the assets is the higher of their fair value less costs of disposal and their value in use. Value in use is 
calculated on the basis of expected future cash flows. Impairment is calculated for individual assets. 
Where the recoverable amount of an individual asset cannot be determined, the recoverable amount of the 
cash-generating unit (CGU) to which that asset belongs is calculated. Any reversals are recognised in the 
consolidated income statement. Impairment losses on goodwill are not reversed in subsequent years (see 
notes 6, 7, 8 and 9). 
 Share capital, own shares and dividends 
Share capital is represented by ordinary shares. The cost of issuing new shares, net of taxes, is deducted from 
equity.

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Own shares are measured at cost of acquisition and recognised as a reduction in equity in the consolidated 
statement of financial position. Any gains or losses on the purchase, sale, issue or redemption of own shares 
are recognised directly in equity. 
Interim dividends are recognised as a reduction in equity for the year in which the dividend is declared, based 
on the consensus of the board of directors. Supplementary dividends are not deducted from equity until 
approved by the shareholders at their general meeting. 
 Grants 
Non-repayable government capital grants awarded by different official bodies to finance the Group's fixed 
assets are recognised once the corresponding investments have been made. 
The Group recognises these grants under non-financial and other capital grants each year during the period 
in which depreciation is charged on the assets for which the grants were received. 
Government assistance provided in the form of income tax deductions and considered as government capital 
grants is recognised applying the general criteria described in the preceding sections.  
 Contract liabilities 
Non-current contract liabilities, generally arising from long-term contracts or commitments, are recognised 
under revenue or other operating income, as appropriate, over the term of the contract or commitment.  
 Provisions 
• Employee benefits  
o Pension obligations 
The Group has defined contribution plans, whereby the benefit receivable by an employee upon retire-
ment – usually based on one or more factors such as age, fund returns, years of service or remuneration 
– is determined by the contributions made. A defined contribution plan is a pension plan under which 
the Group pays fixed contributions into a separate entity, and will have no legal or constructive obliga-
tion to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits 
relating to employee service in the current and prior periods. The contributions are recognised under 
employee benefits when accrued. 
o Other long-term employee benefits  
Other long-term employee benefits include defined benefit plans for benefits other than pensions (such 
as health insurance) for certain serving and retired personnel of the Group. The expected costs of these 
benefits are recognised under provisions over the working life of the employees. These obligations are 
measured each year by independent qualified actuaries. Changes in actuarial assumptions are recog-
nised, net of taxes, in reserves under equity in the year in which they arise, while the past service cost 
is recorded in the consolidated income statement. 
This item also includes deferred remuneration schemes, which are approved by the competent bodies 
in each Group company (see note 15). 
In 2015 the Group's Appointments and Remuneration Committee approved the implementation of a 
Structural Management Plan (hereinafter the “Plan”) for certain members of the management team, with 
the aim of processing, in an orderly and efficient manner, the replacement and administration of the 
management positions covered in the Plan. Upon reaching the age stipulated in the Plan, the executives 
included in the Plan will be entitled to receive an amount equal to a maximum of 3.5 times their annual 
salary, depending on their category and annual fixed and variable remuneration at the date of leaving 
the Group. Participation in the Plan is subject to meeting certain conditions, and the Plan may be mod-
ified or withdrawn by the Group under certain circumstances, including a prolonged decline in the 
Group's results (see note 15).

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• Other provisions 
The Group makes provision for present obligations (legal or constructive) arising as a result of a past event 
whenever it is probable that an outflow of resources will be required to settle that obligation and a reliable 
estimate can be made of the amount of the obligation. Provision is made when the liability or obligation is 
recognised. No provision is made for proceedings with a probability of occurrence of less than 50% as it is 
considered that their future resolution will not have a significant impact on the Group’s consolidated annual 
accounts. 
Provisions are measured at the present value of the estimated expenditure required to settle the obligation 
using a pre-tax risk-free discount rate that reflects assessments of the time value of money. The increase 
in the provision due to the passage of time is recognised as a finance cost in the consolidated income 
statement. 
  Transactions in currency other than the Euro 
• Foreign currency transactions 
Foreign currency transactions are translated to the respective functional currency of the Group companies 
at the transaction date. Monetary assets and liabilities denominated in foreign currencies at the reporting 
date are translated to the functional currency using the closing exchange rate. Exchange gains and losses 
arising during the year due to balances being translated at the exchange rate at the transaction date rather 
than the exchange rate prevailing on the date of collection or payment are recognised as income or 
expenses in the consolidated income statement. 
Fixed income securities and balances receivable and payable in currencies other than the Euro at 31 
December each year are translated at the closing exchange rate. Any exchange differences arising are 
recognised under exchange gains/losses in consolidated profit or loss.  
Transactions conducted in foreign currencies for which the Group has chosen to mitigate currency risk by 
arranging financial derivatives or other hedging instruments are recorded using the criteria for derivative 
financial instruments and hedging transactions. 
• Foreign operations 
The assets and liabilities of foreign operations are translated to Euros using the exchange rates at the 
reporting date. The income and expenses of foreign operations are translated to Euros using the exchange 
rates at the transaction dates. 
Translation differences are recognised in other comprehensive income and presented within equity. 
 Derivative financial instruments and hedging transactions 
The Group holds derivative financial instruments to cover its exposure to currency risk and interest rate risk. 
The Group designates certain derivatives as hedging instruments for covering variability in the cash flows 
associated with highly probable forecast transactions as a result of fluctuations in interest rates and exchange 
rates.  
At the inception of the hedge the Group formally designates and documents the hedging relationships and the 
objective and strategy for undertaking the hedges.  
Hedge accounting is only applicable when the hedge is expected to be highly effective at the inception of the 
hedge and in subsequent years in achieving offsetting changes in fair value or cash flows attributable to the 
hedged risk, throughout the period for which the hedge was designated. 
Derivative financial instruments are initially recognised in the consolidated statement of financial position at 
their fair value on the date the arrangement is executed (acquisition cost) and this fair value is subsequently 
adjusted as necessary. The criterion used to recognise the resulting gain or loss depends on whether the 
derivative is designated as a hedging instrument and, if so, the nature of the hedged item.

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The total fair value of derivative financial instruments is recognised under non-current assets or liabilities if 
the residual maturity of the hedged item is more than 12 months, and under current assets or liabilities if the 
residual maturity is less than 12 months.  
When a hedging instrument expires or is sold, or when it no longer qualifies for hedge accounting, any 
cumulative gain or loss recorded in equity at that time remains in equity, and is immediately reclassified to the 
consolidated income statement as and when changes in cash flows of the hedged item occur. Any cumulative 
gain or loss is also reclassified from equity to the consolidated income statement if the forecast transaction 
is no longer expected to occur. 
The Group recognises the portion of the gain or loss on the measurement at fair value of a hedging instrument 
that is determined to be an effective hedge in other comprehensive income. The ineffective portion and the 
specific component of the gain or loss or cash flows on the hedging instrument, excluding the measurement 
of the hedge effectiveness, are recognised with a debit or credit to finance costs or finance income. 
The separate component of other comprehensive income associated with the hedged item is adjusted to the 
lesser of the cumulative gain or loss on the hedging instrument from inception of the hedge and the cumulative 
change in fair value or present value of the expected future cash flows on the hedged item from inception of 
the hedge. However, if the Group expects that all or a portion of a loss recognised in other comprehensive 
income will not be recovered in one or more future periods, it reclassifies into finance income or finance costs 
the amount that is not expected to be recovered. 
Details of the fair value of the hedging derivatives used are disclosed in note 19. Details of changes in equity 
are provided in note 13. 
 Fair value measurement 
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly 
transaction between market participants at the measurement date, whether that price is directly observable 
or estimated using another valuation technique. 
The fair value measurements of financial assets and financial liabilities are classified on the basis of a 
hierarchy that reflects the relevance of the inputs used in measuring the fair value. The hierarchy comprises 
three levels: 
• Level 1: measurement is based on quoted prices for identical instruments in active markets. 
• Level 2: measurement is based on inputs that are observable for the asset or liability. 
• Level 3: measurement is based on inputs derived from unobservable market data. 
If there is no quoted price in an active market, the Group uses valuation techniques that maximise the use of 
relevant observable inputs and minimise the use of unobservable inputs. Specifically, the Group calculates the 
fair value of derivative financial instruments that are not traded on organised markets using valuation 
techniques, including recent arm’s length transactions between knowledgeable, willing parties, reference to 
other instruments that are substantially the same, discounted cash flow analyses using the market interest 
rates and exchange rates in force at the reporting date, and option pricing models enhanced to reflect the 
particular circumstances of the issuer. 
 Trade payables 
Trade payables are initially recognised at fair value and subsequently measured at amortised cost using the 
effective interest method. Trade payables falling due in less than one year that have no contractual interest 
rate and are expected to be settled in the short term are measured at their nominal amount. 
 Income and expenses 
Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognised 
according to the pattern of transfer of goods and services to the customer at an amount that reflects the 
consideration to which the entity expects to be entitled in exchange for transferring these goods or services.

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The majority of the Group's revenues are regulated revenues from transmission and system operation 
activities in Spain, for which the performance obligations are considered to be satisfied over time. Details of 
the implementing legislation governing the calculation of these revenues are provided in note 3 to the 
accompanying consolidated annual accounts.  
Interest income is recognised using the effective interest method. 
Dividends are recognised when the right to receive payment is established. 
 Taxation 
The income tax expense or tax income for the year comprises current tax and deferred tax. Current and 
deferred taxes are recognised as income or an expense and included in profit or loss for the year, except to 
the extent that the tax arises from a transaction or event that is recognised in the same year, directly in equity, 
or from a business combination. 
Current tax is the estimated tax payable for the year using the enacted tax rates applicable to the current year 
and to any adjustment to tax payable in respect of previous years. 
Tax credits and deductions arising from economic events occurring in the year are deducted from the income 
tax expense, unless there are doubts as to whether they can be realised. 
Deferred taxes and the income tax expense are calculated and recognised using the liability method, based on 
temporary differences arising between the balances recognised in the financial information and those used 
for tax purposes. This method entails calculating deferred tax assets and liabilities on the basis of the 
differences between the carrying amount of the assets and liabilities and their tax base, applying the tax rates 
that are objectively expected to apply to the years when the assets are realised and the liabilities settled. 
Deferred tax assets are recognised provided that it is probable that sufficient taxable profits will be available 
against which the deductible temporary differences can be utilised. 
Deferred tax assets and liabilities are recognised in respect of the temporary differences that arise from 
investments in subsidiaries and associates, except where the Group is able to control the timing of the reversal 
of the temporary differences and it is probable that they will reverse in the foreseeable future. 
In addition to the factors to be considered for individual taxation, set out previously, the following factors are 
taken into account when determining the accrued income tax expense for the companies forming the 
consolidated tax group: 
• Temporary and permanent differences arising from the elimination of profits and losses on transactions 
between Group companies, derived from the process of determining consolidated taxable income. 
• Deductions and credits corresponding to each company forming the consolidated tax group. For these 
purposes, deductions and credits are allocated to the company that carried out the activity or generated 
the profit necessary to obtain the right to the deduction or tax credit. 
• Temporary differences arising from the elimination of profits and losses on transactions between tax 
group companies are recognised by the company that generates the profit or loss, using the applicable tax 
rate. 
• The Parent of the Group records the total consolidated income tax payable (recoverable) with a debit 
(credit) to receivables (payables) from/to Group companies and associates. 
• The amount of the debt (credit) relating to the subsidiaries is recognised with a credit (debit) to payables 
(receivables) to/from Group companies and associates. 
If the Group considers that it is not probable that the taxation authorities will accept an uncertain tax 
treatment or a group of uncertain tax treatments, this uncertainty is taken into account when determining 
taxable income, tax bases, tax loss carryforwards, deductions or tax rates. Tax assets or tax liabilities 
calculated using these criteria that exceed the amount presented in the self-assessments are presented in

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Red Eléctrica Corporación and Subsidiaries 
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the consolidated statement of financial position. Changes in events or circumstances relating to tax 
uncertainties are recognised as a change in accounting estimates. 
The Group only offsets deferred tax assets and liabilities if it has a legally enforceable right to offset the 
recognised amounts, and they relate to income taxes levied by the same taxation authority on the same 
taxable entity or on different taxable entities which intend either to settle current tax liabilities and assets on 
a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which 
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. 
 Earnings per share 
Basic earnings per share are calculated by dividing the net profit for the year attributable to the Parent by the 
weighted average number of ordinary shares outstanding during the year, excluding own shares.  
According to the consolidated annual accounts of the Red Eléctrica Group at 31 December 2019 and 2018, basic 
earnings per share are the same as diluted earnings per share, as no transactions that could have resulted in 
a change in those figures were conducted during those years. 
 Insurance 
The Red Eléctrica Group companies have taken out various insurance policies to cover the risks to which the 
companies are exposed through their activities. These risks mainly comprise damage that could be caused to 
the Group companies' facilities and possible claims that might be lodged by third parties due to the companies’ 
activities. Insurance premium expenses and income are recognised in the consolidated income statement on 
an accruals basis. Payouts from insurance companies in respect of claims are recognised in the consolidated 
income statement when they are receivable. 
 Environmental issues 
Costs derived from business activities intended to protect and improve the environment are charged as 
expenses in the year in which they are incurred. Property, plant and equipment acquired to minimise 
environmental impact and to protect and improve the environment are recognised as an increase in property, 
plant and equipment. 
 Share-based payments 
The Group has implemented share purchase schemes whereby employees can opt to receive part of their 
annual remuneration in the form of shares in the Parent. This remuneration is measured based on the closing 
quotation of these shares at the delivery date. The costs incurred on such schemes are recognised under 
personnel expenses in the consolidated income statement. All shares delivered as payment are taken from 
the own shares held by the Parent. 
 Contingent assets and liabilities 
Contingent assets are not recognised in financial statements since this could result in the recognition of 
income that may never be realised, except in business combinations to the extent that they represent 
indemnification assets. Contingent assets are assessed continually to ensure that developments are 
appropriately reflected in the financial statements. If it has become virtually certain that an inflow of economic 
benefits will arise, the asset and the related income are recognised in the financial statements of the period 
in which the change occurs. 
Contingent liabilities are not recognised in the financial statements, except in business combinations to the 
extent that they represent present obligations arising from past events for which the fair value can be reliably 
measured. Contingent liabilities are assessed continually and if it becomes probable that an outflow of future 
economic benefits will be required for an item previously dealt with as a contingent liability, a provision is 
recognised in the financial statements of the period in which the change in probability occurs.

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 Business Combinations 
 
Business combinations carried out in 2019 
• Acquisition of Hispasat, S.A. 
On 3 October 2019 the Group, through Red Eléctrica Sistemas de Telecomunicaciones, S.A.U. (hereinafter 
RESTEL), a wholly owned subsidiary of Red Eléctrica Corporación, S.A., acquired 89.68% of the shares held 
by Abertis Infraestructuras, S.A. in Hispasat, S.A. (hereinafter Hispasat) for Euros 933 million. The company 
acquired is the parent of a group of companies, hereinafter the Hispasat Group. 
The acquiree’s statutory and principal activity consists of the operation of satellite telecommunications 
systems.  
At the date these consolidated annual accounts were authorised for issue, control having being assumed 
in the last quarter of 2019 and due to the complexity involved in the determination of the fair value of certain 
assets, which is currently being undertaken by an independent expert, the Red Eléctrica Group is at a 
preliminary stage of the Purchase Price Allocation (PPA) process. On a provisional basis, until the necessary 
calculations are finalised, the Group has performed a preliminary PPA, allocating the excess of the price 
paid over the carrying amount of the net assets acquired, the fair value of contingent liabilities and 
indemnification assets to goodwill. This business combination will be definitively recognised within the 12-
month period provided for by IFRS 3, which ends on 3 October 2020, to reflect the information, facts and 
circumstances that existed at the acquisition date. The fair value of contingent liabilities and 
indemnification assets will be used. 
The table below summarises the net assets acquired at the acquisition date:  
 
Thousands of Euros 
03/10/2019 
Adjustments 
Provisional fair 
value 
Intangible assets 
51,727  
 
51,727  
Property, plant and equipment 
929,344  
 
929,344  
Other non-current assets 
91,397  
 
91,397  
Other current assets 
59,956  
25,260  
85,216  
Cash and cash equivalents 
29,911  
 
29,911  
Total assets 
1,162,335  
25,260  
1,187,595  
Non-current liabilities 
(274,394) 
 
(274,394) 
Current liabilities 
(118,957) 
(25,260) 
(144,217) 
Total liabilities 
(393,351) 
(25,260) 
(418,611) 
Total net assets 
768,984  
-  
768,984  
Price paid + Non-controlling interest 
 
 
1,040,366  
Goodwill 
 
 
271,382  
 
The adjustment to the fair value of current liabilities reflects the recognition of contingent liabilities; as 
these liabilities are secured by the seller, an indemnification asset has been recognised in the same 
amount. Contingent liabilities mainly pertain to tax litigation in Brazil in relation to the ICMS (Brazilian tax 
on the circulation of goods and services), as well as other taxes, mainly of an indirect nature. These 
proceedings arise from inspection assessments, in respect of which the Group companies have lodged 
appeals. In addition, the Group has specific guarantees to cover them (see notes 15 and 22). 
The assets and liabilities identified in the PPA for possible allocation are as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 34 of 87 
 
o Within intangible assets, licences granted for the use of orbital slots in order to render satellite capacity 
lease services. 
o Within property, plant and equipment, primarily the Group’s fleet of satellites.  
o Within non-current assets, equity-accounted investments, principally in Hisdesat Servicios 
Estratégicos, S.A. 
o Within non-current liabilities, deferred tax liabilities in relation to revaluations which are not considered 
to be tax deductible.  
The provisional goodwill resulting from this business combination is attributable to the benefits and 
synergies expected to arise in the Red Eléctrica Group from the acquisition and integration of Hispasat. 
Preliminary goodwill amounts to Euros 271 million.  
Consolidated revenue and net profit for the period, contributed since the date of acquisition, amount to 
Euros 42.3 million and Euros 6.0 million, respectively. Had the acquisition taken place on 1 January 2019, 
the consolidated revenue and net profit contributed would have amounted to Euros 173.7 million and Euros 
0.3 million, respectively. 
The Group incurred acquisition costs of Euros 4.0 million, of which Euros 2.4 million were accrued in 2019 
and the rest was booked in prior years. These costs were included under other operating expenses in the 
consolidated income statement. 
• Acquisition of Concesionaria Línea de Transmisión CCNMC S.A.C. 
On 18 July 2019 the Group, through Red Eléctrica del Norte Perú S.A.C. (hereinafter REDELNOR), a wholly 
owned subsidiary of Red Eléctrica Corporación, S.A., acquired 100% of the shares held by Cajamarca LT 
Invest S.L. and Bow Power S.L. in Concesionaria Línea de Transmisión CCNCM S.A.C. (hereinafter CCNCM) 
for US Dollars 34.3 million (Euros 30.6 million). 
The statutory and principal activity of the acquired company consists of rendering transmission, operation 
and maintenance services in Peru through the 220kV Carhuaquero – Cajamarca Norte – Caclic – 
Moyobamba transmission line and related substations under the concession agreement entered into with 
the Peruvian state. 
A summary of the amounts recognised for the assets acquired and liabilities assumed at the acquisition 
date, the amounts resulting from their fair value measurements, and the exchange rate is as follows: 
 
Thousands of US Dollars 
18/07/2019 
Adjustments 
Fair value 
Fair value in 
thousands of Euros 
(*) 
Intangible assets - Concessions (note 6) 
180,079  
19,832  
199,911  
178,237  
Concessions (note 6) 
180,079  
15,729  
195,808  
174,579  
Goodwill 
 
4,103  
4,103  
3,658  
Property, plant and equipment 
1  
 
1  
1  
Other current assets 
4,429  
 
4,429  
3,949  
Cash and cash equivalents 
2,268  
 
2,268  
2,022  
Total assets 
186,777  
19,832  
206,609  
184,209  
Non-current liabilities 
(167,431) 
(4,090) 
(171,521) 
(152,925) 
Deferred tax liabilities 
(1,870) 
(4,090) 
(5,960) 
(5,313) 
Other non-current liabilities 
(165,561) 
 
(165,561) 
(147,611) 
Current liabilities 
(797) 
 
(797) 
(711) 
Total liabilities 
(168,228) 
(4,090) 
(172,318) 
(153,635) 
Total net assets 
18,549  
15,742  
34,291  
30,574  
(*) Calculated using the Euro-USD exchange rate at 18 July 2019

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 35 of 87 
 
Within intangible assets, concessions comprise the agreement between CCNCM and the Peruvian state, 
whereby the Company undertakes to design, finance, procure, construct, operate and maintain the 
Carhuaquero – Cajamarca Norte – Moyomba transmission line and related substations. This intangible asset 
has been valued by independent experts using the income approach. The income approach aims to define 
the market value of a business based on the present value of foreseeable future cash flows by means of 
discounted cash flow (DCF). The concession has been revalued at US Dollars 15.7 million (Euros 14.0 million). 
Deferred tax liabilities arise from the revaluation of the above-mentioned concession, due to differences 
between accounting amortisation and tax amortisation.  
This business combination entailed the recognition of goodwill, which is supported by the net recognition 
of deferred taxes because the fair value assigned to the net assets acquired was higher than the tax values. 
Goodwill was calculated as the difference between the cost of acquisition and fair value of the identifiable 
assets and liabilities existing at the transaction date, including the deferred taxes arising from the 
differences between the new fair value of the assets acquired and their tax value. Goodwill amounts to US 
Dollars 4.1 million (Euros 3.6 million).  
Consolidated revenue and net profit and loss for the period contributed since the date of acquisition 
amount to Euros 6.4 million and Euros -2.2 million, respectively. Had the acquisition taken place on 1 
January 2019, the consolidated revenue and net profit and loss contributed would have amounted to Euros 
14.9 million and Euros -4.7 million, respectively. 
Given that 12 months have not yet elapsed since the acquisition, the recognition of this business 
combination would be revised if the circumstances provided for in IFRS 3 Business Combinations were to 
arise. However, the Group does not expect any changes in the fair values recognised for the assets 
acquired and liabilities assumed in the business combination. 
The Group incurred acquisition costs of Euros 0.5 million. These costs were included under other operating 
expenses in the consolidated income statement. 
 
Business combinations carried out in 2018 
• Acquisition of Centinela Transmisión, S.A. 
On 12 September 2018 the Group, through REDENOR 2, acquired 100% of the Chilean company Centinela 
Transmisión S.A. (which changed its name to Katari Transmisión S.A. (KATARI)) for US Dollars 117.8 million 
(Euros 101.2 million). The acquiree’s statutory and principal activity consists of electricity transmission and 
transportation activities. KATARI operates a 265 km circuit made up of three 220 kV lines in Chile’s northern 
Antofagasta Region. On 31 October 2018, this company was absorbed by REDENOR 2. 
A summary of the amounts recognised for the assets acquired and liabilities assumed at the acquisition 
date, the amounts resulting from their fair value measurements, and the exchange rate is as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 36 of 87 
 
Thousands of US Dollars 
Opening 
balance 
Adjustments 
Fair value 
Fair value in 
thousands of 
Euros (*)   
Intangible assets 
- 
55,516 
55,516 
48,486 
Property, plant and equipment 
33,864 
16,570 
50,434 
43,840 
Other non-current assets 
296 
- 
296 
259 
Other current assets 
3,643 
(746) 
2,897 
2,530 
Cash and cash equivalents 
13,194 
- 
13,194 
11,523 
Non-current liabilities 
(3,344) 
- 
(3,344) 
(2,921) 
Current liabilities 
(7,516) 
6,405 
(1,111) 
(970) 
Total assets and liabilities 
40,137 
77,745 
117,882 
102,747 
(*) USD/Euro exchange rate at December 2018 
 Intangible Assets  
Movement in intangible assets and details of accumulated amortisation during 2019 and 2018 are as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
Red Eléctrica Corporación y Sociedades Dependientes 
 
 
 
 
 
 
    Página 37 de 87  
 
 
Thousands of Euros 
31 December 
2017 
Exchange 
differences 
Changes in the 
consolidated 
Group 
Additions  
Transfers 
31 
December 
2018 
Exchange 
differences 
Changes in the 
consolidated 
Group 
Additions  31 December 
2019 
Administrative 
concessions and 
industrial property 
114,890  
5,449  
-  
-  
51,028  
171,367  
3,429  
211,941  
290  
387,027  
Development 
expenses and 
computer software 
29,327  
2  
-  
16,613  
(2,082) 
43,860  
267  
2,761  
18,439  
65,327  
Goodwill 
-  
-  
-  
-  
-  
-  
-  
275,034  
-  
275,034  
Other intangible assets 
-  
-  
48,486  
-  
-  
48,486  
932  
-  
-  
49,418  
Intangible assets 
under development 
49,115  
2,323  
-  
26,848  
(51,057) 
27,229  
40  
12,000  
15,622  
54,892  
Total intangible 
assets 
193,332  
7,774  
48,486  
43,461  
(2,111) 
290,942  
4,669  
501,736  
34,351  
831,698  
Accumulated 
amortisation of 
administrative 
concessions 
(20,595) 
(1,176) 
-  
(5,991) 
-  
(27,762) 
(1,207) 
-  
(11,203) 
(40,172) 
Accumulated 
amortisation of 
development expenses 
and computer 
software 
(17,798) 
(8) 
-  
(2,607) 
(208) 
(20,621) 
(9) 
-  
(5,297) 
(25,927) 
Total accumulated 
amortisation 
(38,393) 
(1,184) 
-  
(8,598) 
(208) 
(48,383) 
(1,217) 
-  
(16,499) 
(66,099) 
Carrying amount 
154,939  
6,590  
48,486  
34,863  
(2,319) 
242,559  
3,452  
501,736  
17,852  
765,599

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
Red Eléctrica Corporación y Sociedades Dependientes 
Página 38 de 87  
 
Changes in the consolidated Group include the addition of CCNCM and Hispasat Group companies (see note 
5). 
Administrative concessions and industrial property mainly include service concession arrangements 
granted by different public entities to the Group companies for the construction and operation of technical 
electricity facilities in Peru, as well as different bandwidth licences for the use of orbital slots above Brazilian 
territory as a result of the Hispasat Group acquisition. 
Details of agreements for concessions under operation and/or construction in Peru at 31 December 2019 are 
as follows: 
 
Thousands of Euros 
Redesur 
Tesur 
Tesur 2 
Tesur 3 
Tesur 4 
CCNCM (*) 
Grantor 
Peruvian State 
Peruvian State 
Peruvian State 
Peruvian State 
Peruvian State 
Peruvian State 
Activity 
Electricity 
transmission 
Electricity 
transmission 
Electricity 
transmission 
Electricity 
transmission 
Electricity 
transmission 
Electricity 
transmission 
Country 
Peru 
Peru 
Peru 
Peru 
Peru 
Peru 
Concession period from 
start-up of commercial 
operations 
30 years 
30 years 
30 years 
30 years 
30 years 
30 years 
Remaining useful life 
12 years 
25 years 
29 years  
6 months 
construction + 30 
years operation 
30 months 
construction + 30 
years operation 
28 years operation 
Tariff review frequency 
Annual 
Annual 
Annual 
Annual 
Annual 
Annual 
Carrying amount at 
31/12/2019 
39,585  
55,607  
49,286  
28,877  
6,012  
157,879  
Carrying amount at 
31/12/2018 
40,036  
56,792  
50,057  
22,427  
1,549  
-  
Revenue in 2019 
27,168  
6,380  
5,213  
-  
-  
6,362  
Revenue in 2018 
17,512  
5,907  
4,105  
-  
-  
-  
Profit/(loss) for 2019 
6,047  
(442) 
405  
(217) 
(34) 
(2,294) 
Profit/(loss) for 2018 
3,647  
11  
150  
(42) 
96  
-  
Renewal options 
Not stipulated in 
contract 
Not stipulated in 
contract 
Not stipulated in 
contract 
Not stipulated in 
contract 
Not stipulated in 
contract 
Not stipulated in 
contract 
(*) Concession added to the consolidated Group on 18 July 2019. The contribution to the Red Eléctrica Group is indicated as from that date (see note 5). 
 
Also added to the consolidated Group were the Brazilian satellite operation rights for the transmission of 
telecommunication signals over C-, Ku-, BSS Ku- and Ka-bands using the orbital slot at 61º west and over the 
Ku-band and AP 30/30A using the orbital slot at 74º west over Brazilian territory, as well as the renewal of 
satellite orbital rights at 61º west. 
Goodwill arises from the business combinations of the Hispasat Group and CCNCM carried out in 2019 (see 
note 5). 
Intangible assets under development in 2019 and 2018 are mainly related to the construction work carried 
out by the Peruvian companies TESUR 3 and TESUR 4 for the concession facilities of these two companies. 
Other intangible assets amounting to Euros 49,418 thousand reflect the perpetual right to regulated tariffs 
arising from the acquisition of a transmission line forming part of the Chilean National Transmission System. 
This item is not amortised as it has an indefinite useful life, and is tested for impairment annually. 
Operating expenses of Euros 15,572 thousand incurred directly in connection with intangible assets were 
capitalised in 2019 (Euros 27,016 thousand in 2018).

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
Red Eléctrica Corporación y Sociedades Dependientes 
Página 39 de 87  
 
During 2019 the Group capitalised borrowing costs of Euros 843 thousand as an increase in intangible assets 
(Euros 787 thousand in 2018). 
At 31 December 2019 the Group has fully amortised intangible assets amounting to Euros 18,550 thousand 
(Euros 18,550 thousand in 2018), most of which comprise development expenses and computer software. 
At 31 December 2019 the carrying amount of intangible assets located outside of Spain is Euros 436,742 
thousand (Euros 219,432 thousand in 2018). 
At the 2019 and 2018 reporting dates, the Group has performed impairment testing on those intangible assets 
for which there could be indications of impairment due to changes in sector regulations. To this end, the 
Group calculated the value in use of the CGUs associated with the assets, which was determined to exceed 
their carrying amount. 
 Property, Plant and Equipment 
Movement in property, plant and equipment and details of accumulated depreciation and impairment during 
2019 and 2018 are as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación y Sociedades Dependientes 
 
 
 
 
 
 
   Página 40 de 87  
 
 
Thousands of Euros 
31.12.2017 
Exchange 
differences 
Changes in 
the 
consolidated 
Group 
Additions 
and other 
Exits, 
disposals, 
reductions 
and write-
downs 
Transfers 
31.12.2018 
Exchange 
differences 
Changes in 
the 
consolidated 
Group 
First-time 
application of 
IFRS 16 
Additions 
and other 
Exits, 
disposals, 
reductions 
and write-
downs 
Transfers 
31.12.2019 
Cost 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Land and buildings 
82,643  
27  
-  
-  
(37) 
42  
82,675  
96  
15,972  
7,582  
2,673  
-  
9,223  
118,221  
Technical 
telecommunications facilities 
438,367  
-  
-  
-  
-  
4,014  
442,381  
-  
960,227  
-  
687  
(5,812) 
10,313  
1,407,796  
Technical electricity facilities 
13,665,016  
-  
42,732  
-  
(4,232) 
330,333  
14,033,849  
822  
-  
-  
9,943  
(4,206) 
473,878  
14,514,286  
Other installations, 
machinery, equipment, 
furniture and other items 
220,499  
49  
-  
207  
(334) 
3,096  
223,517  
53  
3,853  
3,794  
498  
(1,113) 
17,120  
247,722  
Technical electricity facilities 
under construction 
675,678  
-  
-  
370,062  
-  (327,980) 
717,760  
-  
-  
-  
389,910  
-  (487,991) 
619,679  
Under construction and 
advances 
46,088  
 
1,108  
31,699  
(9) 
(7,394) 
71,492  
-  
15,821  
-  
69,196  
(898) 
(22,543) 
133,068  
Total cost 
15,128,291  
76  
43,840  
401,968  
(4,612) 
2,111  
15,571,674  
971  
995,873  
11,376  
472,907  
(12,029) 
-  
17,040,772  
Accumulated depreciation 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Buildings 
(22,984) 
(4) 
-  
(1,435) 
11  
(36) 
(24,448) 
(11) 
-  
-  
(1,630) 
304  
-  
(25,785) 
Technical 
telecommunications facilities 
(67,528) 
-  
-  
(22,424) 
-  
-  
(89,952) 
-  
-  
-  
(52,933) 
-  
9  
(142,876) 
Technical electricity facilities 
(6,026,280) 
(7) 
-  (432,872) 
4,094  
-  
(6,455,065) 
(1) 
-  
-  
(438,975) 
2,626  
9,741  
(6,881,674) 
Other installations, 
machinery, equipment, 
furniture and other items 
(180,498) 
(16) 
-  
(15,380) 
317  
244  
(195,333) 
(13) 
-  
-  
(15,463) 
3  
(9,750) 
(220,556) 
Total accumulated 
depreciation 
(6,297,290) 
(27) 
-  
(472,111) 
4,422  
208  
(6,764,798) 
(25) 
-  
-  
(509,001) 
4,374  
-  
(7,270,891) 
Impairment 
(83,625) 
-  
-  
(11,919) 
-  
-  
(95,544) 
-  
-  
-  
(1,202) 
-  
-  
(96,746) 
Carrying amount 
8,747,376  
49  
43,840  (82,062) 
(190) 
2,319  
8,711,332  
946  
995,873  
11,376  
(37,296) 
(7,655) 
-  
9,673,135

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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Changes in the consolidated Group include the addition of CCNCM and Hispasat Group companies (see note 5). 
Technical telecommunications facilities essentially consist of the concession of the rights to use and manage 
the operation of the fibre optic cable network and other related items, pursuant to the 20-year agreement 
entered into by REINTEL with ADIF in 2014, as well as investments associated with the Group's fleet of 
satellites, which comprise the Hispasat 30W-4, Hispasat 30W-5, Hispasat 30W-6, Hispasat 36W-1, Amazonas 
2, Amazonas 3, Hispasat 74W-1, Amazonas 5 and Hispasat 55W-2. 
Technical electricity facilities are assets that are subject to regulated remuneration (see note 3). The main 
additions to technical electricity facilities in 2019 and 2018 are investments in electricity transmission facilities 
in Spain.  
Property, plant and equipment are measured at cost of acquisition, less any accumulated depreciation and 
impairment (except for assets acquired in business combinations, which are initially recognised at fair value). 
Cost of acquisition includes the price paid for the asset, personnel expenses, operating expenses and any 
borrowing costs directly attributable to the construction or manufacture of the asset. 
At 31 December 2019 the amount presented in additions and other mainly reflects the investments made during 
the year as well as the technical facilities received under agreements with third parties. 
As a result of first-time application of IFRS 16, assets have arisen in respect of the right to use assets under 
leases in an amount of Euros 11,376 thousand, of which Euros 3,794 thousand reflects vehicles and Euros 7,582 
thousand reflects buildings.  
At 31 December 2019, the amount shown under exits, disposals, reductions and write-downs mainly reflects 
the disposal of certain fully-depreciated assets.  
During 2019, the Group companies capitalised construction-related borrowing costs of Euros 6,869 thousand 
as an increase in property, plant and equipment (Euros 5,386 thousand in 2018). The weighted average rate 
used to capitalise borrowing costs was 1.6% in 2019 (1.5% in 2018). 
Operating expenses of Euros 44,511 thousand incurred directly in connection with property, plant and 
equipment under construction were capitalised in 2019 (Euros 35,011 thousand in 2018). The Group's capitalised 
expenses directly related to the construction of facilities include all operating expenses incurred to provide 
support to the units directly involved in the activity.  
The Group has cash-generating units (CGUs) that encompass property, plant and equipment. CGUs are the 
smallest identifiable group of assets that generate cash inflows that are largely independent of the cash 
inflows from other assets or groups of assets. The CGUs identified in property, plant and equipment are related 
to electricity transmission in Spain, Chile and Peru, fibre optic telecommunications in Spain, satellite 
telecommunications and certain individual assets. The CGUs identified are the same in 2019 and 2018. 
The Group tests for impairment when it observes indications, such as amendments to sector regulations or 
changes in investment plans. In order to calculate impairment, the Group verifies that the recoverable amount 
or value in use of each cash-generating unit with which the assets or individual assets are associated exceeds 
its carrying amount. Otherwise, an impairment loss is recognised in the consolidated income statement for 
the difference between the two, with a charge to impairment and gains/losses on disposal of fixed assets, up 
to the limit of the higher of: (i) its fair value less costs to sell and (ii) its value in use.  
Impairment losses recognised for an asset in prior years are reversed when a change arises in the estimate of 
its recoverable amount, increasing the value of the asset with a credit to results up to the limit of the carrying 
amount that the asset would have had if no impairment loss had been recognised.  
The recoverable amount is the higher of fair value less costs to sell and value in use, which is understood to 
be the present value of estimated future cash flows. The Group considers the value in use of an asset to be its 
recoverable amount. Value in use is calculated using the methodology described below.  
To estimate value in use, the Group prepares forecasts of future cash flows after tax based on the best 
available estimates. These provisions include the best available estimates of income, expenses and

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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investments, using past experience and future expectations in accordance with the prevailing regulatory 
framework.  
At the 2019 reporting date, the Group has performed impairment testing on those items of property, plant and 
equipment for which there are indications of impairment, by calculating the value in use of the CGUs 
associated with the assets, which exceeds their carrying amount. In 2019 impairment totalling Euros 1,202 
thousand was recognised on technical telecommunications facilities. Impairment of Euros 11,919 thousand 
was recognised in 2018 as a result of indications of impairment on certain facilities that are included in 
technical electricity facilities under construction. 
At 31 December 2019 the Group has fully depreciated property, plant and equipment amounting to Euros 
2,516,967 thousand, of which Euros 2,335,545 thousand comprises technical electricity facilities (Euros 
1,577,123 thousand in 2018, of which Euros 1,420,317 thousand comprised technical electricity facilities). 
Details of capital grants and other non-current revenue received in advance, in relation to property, plant and 
equipment, are provided in note 14. 
The Group has taken out insurance policies to cover the risk of damage to its property, plant and equipment. 
These policies provide adequate protection against the risks covered. 
The Group has no firm commitments to purchase significant amounts of property, plant and equipment 
relative to its present volume of assets, and to the investments it makes and plans to make. The Group 
periodically places orders to cover needs related to its investment plans. The various amounts in the 
aforementioned orders will normally materialise in the form of delivery orders as and when the different 
projects included in the plans are capitalised. Therefore, they do not constitute firm purchase commitments 
at the time of issue. 
 Right-of-Use Assets and Lease Liabilities 
The entry into force of IFRS 16 led to assets being recognised in 2019 in relation to the right to use assets under 
leases (see note 2). Euros 11,376 thousand was recognised at 1 January 2019 due to the entry into force of IFRS 
16. 
Analysis of the Group’s leases subject to IFRS 16 reveals that the main types of assets to which this standard 
applies are as follows: 
o Vehicles: primarily vehicles under operating leases. 
o Buildings: offices, premises and land needed to carry out the Group’s activity. 
 
• Right-of-use assets 
Details of right-of-use assets and movement in 2019 are as follows: 
 
2019 
1 January 2019 
11,376 
Additions to consolidated Group 
5,266 
Additions during the year 
4,846 
Derecognitions during the year 
(1,682) 
Depreciation for the year 
(2,985) 
Total 
16,821

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 43 of 87  
 
•  Amounts recognised in profit or loss 
Details of the amounts recognised in the 2019 consolidated income statement in relation to the application 
of IFRS 16 are as follows: 
 
2019 
Interest on lease liabilities 
131  
Depreciation charges 
2,985 
Total  
3,116 
 
The expense recognised in 2018 in relation to assets under lease amounted to Euros 6,255 thousand, 
including leases subject to IFRS 16 in 2019. Euros 4,385 thousand has been recognised as operating 
expenses in respect of leases not falling within the scope of IFRS 16. 
• Amounts recognised in the consolidated statement of cash flows 
Details of lease payments made in 2019 are as follows: 
 
2019 
Lease payments 
1,868 
Interest paid on leases 
131  
Total 
1,999 
 
• Future minimum lease payments 
Committed future minimum lease payments are as follows: 
 
2019 
Up to 1 year 
4,095 
2 to 5 years 
6,569 
More than 5 years 
13,009 
Total  
23,673 
 Investment Property 
Movement in the Group’s investment property in 2019 and 2018 is as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 44 of 87  
 
Thousands of Euros 
31 
December 
2017 
Addi-
tions  
Dispos-
als 
31 
December 
2018 
Addi-
tions  
Dispos-
als 
31 
December 
2019 
Cost 
 
 
 
 
  
  
  
Investment property 
2,910  
-  
(72) 
2,838  
-  
(441) 
2,397  
Total cost 
2,910  
-  
(72) 
2,838  
-  
(441) 
2,397  
Accumulated depreciation 
 
 
 
 
  
  
  
Investment property 
(525) 
(44) 
-  
(569) 
(29) 
99  
(499) 
Total accumulated depreciation 
(525) 
(44) 
-  
(569) 
(29) 
99  
(499) 
Impairment 
-  
(615) 
-  
(615) 
(128) 
190  
(553) 
Carrying amount 
2,385  
(659) 
(72) 
1,654  
(157) 
(152) 
1,345  
 
Investment property disposals in 2019 reflect the sale of various premises in Spain. Disposals in 2018 related 
to a plot of land in Spain. 
At the 2019 reporting date, analysis of the fair value of investment property had brought to light impairment 
losses of Euros 128 thousand on certain items (Euros 615 thousand in 2018), which have been recognised in the 
consolidated income statement.  
Investment property has a market value of approximately Euros 2 million in 2019 and does not generate or 
incur significant operating income or expenses.  
 Equity-accounted Investees 
This item includes the investments in Transmisora Eléctrica del Norte, S.A. (TEN), in which the Group holds a 
50% interest through Red Eléctrica Chile SpA, Hisdesat Servicios Estratégicos, S.A., in which the Red Eléctrica 
Group holds a 38.56% interest, and Grupo de Navegación Sistemas y Servicios, S.L., in which the Red Eléctrica 
Group holds a 12.82% interest. These latter two investments are both through the Group company Hispasat, 
S.A. As joint ventures, these companies are included in the financial statements of the Group using the equity 
method (see note 2 d). 
TEN was incorporated on 1 March 2007 and undertook the project in Chile for the construction of a 
transmission line spanning approximately 580 km and the corresponding substations. This project has 
connected the Far North Interconnection System to the Central Interconnected System in Chile since 2018. 
TEN currently operates and maintains the facilities constructed. The acquisition price was US Dollars 217,560 
thousand (Euros 199,816 thousand). 
Hisdesat Servicios Estratégicos, S.A. engages in the commercialisation of spatial systems for government 
use. Grupo de Navegación Sistemas y Servicios, S.L. engages in the operation of satellite systems. Both 
companies form part of the Hispasat Group, which joined the Red Eléctrica Group on 3 October 2019, as 
indicated in note 5.  
Movement in these investments in 2018 and 2019 was as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 45 of 87  
 
Thousands of 
Euros 
 
 
 
 
 
 
 
 
 
 
Company 
31.12.2017 
Exchange 
differences 
Profit 
attributable 
to 
investment 
Valuation 
adjustments 31.12.2018 
Exchange 
differences 
Changes in the 
consolidated 
Group 
Profit 
attributable 
to 
investment 
Valuation 
adjustments 31.12.2019 
Transmisora 
Eléctrica del 
Norte, S.A. 
(TEN) 
172,727  
8,881  
6,966  
9,803  
198,377  
3,799  
-  
7,606  
(10,757) 
199,026  
Hisdesat 
Servicios 
Estratégicos, 
S.A. 
-  
-  
-  
-  
-  
-  
59,080  
1,369  
-  
60,449  
Grupo de 
Navegación 
Sistemas y 
Servicios, 
S.L. 
-  
-  
-  
-  
-  
-  
119  
-  
-  
119  
Total 
172,727  
8,881  
6,966  
9,803  
198,377  
3,799  
59,199  
8,975  
(10,757) 
259,594  
 
The key indicators of these companies at 31 December 2019 and 2018 are as follows: 
 
Thousands of Euros 
Transmisora Eléctrica del Norte, S.A. 
(TEN) 
Hisdesat 
Servicios 
Estratégicos, 
S.A. (*) 
Grupo de 
Navegación 
Sistemas y 
Servicios, S.L. 
(*) 
Year 
2019 
2018 
2019 
2019 
Non-current assets 
666,557  
665,015  
284,409  
1,139  
Current assets  
77,425  
95,535  
220,875  
156  
Cash and cash equivalents 
43,117 
65,948  
210,932  
152  
Total assets 
743,982  
760,550  
505,284  
1,295  
Non-current liabilities  
654,904  
620,616  
231,603  
-  
Current liabilities 
36,371  
77,998  
49,261  
360  
Total liabilities 
691,275  
698,614  
280,864  
360  
Net assets 
52,707  
61,936  
224,420  
935  
Revenue from ordinary activities 
75,895  
74,812  
72,233  
-  
Gross operating profit  
66,147  
54,252  
53,310  
-  
Net operating profit  
50,962  
51,429  
17,648  
-  
Profit after tax 
15,212  
13,748  
9,970  
-  
Comprehensive income 
5,866  
30,039  
6,947  
-  
Dividends received by the Group 
-  
-  
-  
-  
(*) Company added to the consolidated Group on 3 October 2019. Revenue and results shown are for the full year.

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 46 of 87  
 
 
At 31 December 2019 and 2018 the balance of the loan extended by the Group to TEN was Euros 24,677 thousand 
and Euros 41,724 thousand, respectively (see note 18). 
The Group performs an impairment test each year to verify the recoverability of its investment.  When testing 
for impairment, the Group considers projections of future cash flows. Such testing was performed on the 
investment in TEN in 2019 and the value in use exceeded the carrying amount. Thus, the Group concluded that 
this investment is not impaired.  
The most representative assumptions included in the projections used, based on business forecasts and own 
past experience, are as follows:  
• Regulated remuneration: estimated based on the remuneration approved in legislation for the years 
available, whilst the same update mechanisms as those set out in prevailing legislation have been used for 
subsequent years.  
• Investment: the best information available on the asset investment and maintenance plans for the 
infrastructure throughout the estimated time period has been used.  
• Operating and maintenance costs: projected in line with the growth expected to derive from the 
investment plan.  
• Other costs: projected based on knowledge of the sector and past experience and in line with the growth 
expected to derive from the investment plan.  
In order to calculate present value, the projected cash flows are discounted using a rate, after tax, that 
considers the weighted average cost of capital (WACC) of the business and the geographical area in which it 
is carried out. 
As regards the investments in Hisdesat Servicios Estratégicos, S.A. and Grupo de Navegación Sistemas y 
Servicios, S.L., these companies are within the Hispasat Group, for which the PPA process that will give rise 
to the fair value measurement of the assets and liabilities is at a preliminary stage. At the 2019 reporting date 
they are recognised in proportion to the Red Eléctrica Group's percentage interest, at the carrying amount 
recorded by the Hispasat Group in its accounts. 
 Inventories 
Details of inventories at 31 December 2019 and 2018 are as follows: 
Thousands of Euros 
2019 
2018 
Inventories 
76,124 
67,535 
Write-downs 
(33,404) 
(32,894) 
Total 
42,720 
34,641 
Inventories mainly reflect materials and spare parts related to the technical electricity facilities. 
The Group companies regularly test inventories for impairment based on the following assumptions: 
• Impairment of old inventories, using inventory turnover ratios. 
• Impairment for excess inventories, on the basis of estimated use in future years. 
As a result, the Group recorded impairment losses of Euros 510 thousand in the consolidated income 
statement for 2019 (Euros 4,573 thousand in 2018). 
 Trade and Other Receivables 
Details of trade and other receivables at 31 December 2019 and 2018 are as follows:

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Red Eléctrica Corporación and Subsidiaries 
Page 47 of 87  
 
Thousands of Euros 
2019 
2018 
Trade receivables 
74,396 
10,826 
Other receivables 
1,261,607 
1,089,675 
Current tax assets (note 22) 
10,004 
2,059 
Total 
1,346,007 
1,102,560 
 
Trade receivables primarily comprise balances receivable on the lease of satellite capacity and related 
services.  
Other receivables at 31 December 2019 and 2018 mainly reflect the trend in settlements made by the CNMC in 
those years for regulated activities in Spain as a result of changes in collections and payments. At 31 December 
2019 and 2018 the balances mostly comprise amounts pending invoicing and/or collection for regulated 
transmission and system operation activities. Under the settlement system set up by the Spanish regulator, 
some of these receivables are settled and collected in the following year. These amounts also include the 
revenue receivable derived from applying the methodology set forth in the remuneration model in force for 
transmission activities in Spain, which stipulates that facilities entering into service in year ‘n’ are to be 
remunerated from year ‘n+2’ onwards.  
There are no significant differences between the fair value and the carrying amount at 31 December 2019 and 
2018. At 31 December 2019 and 2018 there are no significant amounts over 12 months past due (see note 17). 
On 1 January 2018 the Group began to calculate impairment of financial assets based on expected loss, as 
detailed in note 2.b, using the principles described in note 4.f). This led to the reversal in 2019 of impairment 
totalling Euros 650 thousand (in 2018 the recognition of impairment amounting to Euros 590 thousand and a 
Euros 807 thousand reduction in equity due to the first-time application of IFRS 9 at 1 January 2018). 
Impairment of financial assets based on expected loss accumulated at 31 December 2019 amounts to Euros 
747 thousand. 
 
 Equity 
 Capital risk management 
The Group’s management of its companies’ capital is aimed at safeguarding their capacity to continue 
operating as a going concern, so as to provide shareholder remuneration while maintaining an optimum capital 
structure to reduce the cost of capital. 
To maintain and adjust the capital structure, the Group can adjust the amount of dividends payable to 
shareholders, reimburse capital or issue shares. 
The Group controls its capital structure on a gearing ratio basis, in line with sector practice. This ratio is 
calculated as net financial debt divided by the sum of the Group's equity and net financial debt. Net financial 
debt is calculated as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 48 of 87  
 
Thousands of Euros 
2019 
2018 
Non-current payables (*) 
5,257,840 
4,980,757 
Current payables (*) 
1,124,871 
490,460 
Foreign currency derivatives 
(28,566) 
(21,345) 
Cash and cash equivalents 
(328,570) 
(767,152) 
Net financial debt 
6,025,575 
4,682,720 
Equity 
3,614,434 
3,361,366 
Gearing ratio 
62.5% 
58.2% 
(*) In both 2019 and 2018 interest payable has been excluded. 
At 31 December 2019, the financial covenants stipulated in the contracts entered into have been met.  
On 21 May 2019 the credit rating agency Standard & Poor’s issued a new report on the Company maintaining its 
long-term rating of A- and short-term rating of A-2, with a stable outlook.   
On 6 June 2019 the credit rating agency Fitch Ratings upgraded the Company’s short-term rating from ‘F2’ to 
‘F1’, with a stable outlook. Following this announcement, the Company and its subsidiary Red Eléctrica de 
España, S.A.U. maintain long-term ratings of A- and short-term ratings of ‘F1’, with a stable outlook. 
 Equity attributable to the Parent 
• Capital and reserves 
o Share capital 
At 31 December 2019 and 2018 the Company's share capital is divided into 541,080,000 shares of Euros 
0.50 par value each represented by book entries, all subscribed and fully paid-in, and carrying the same 
voting and profit-sharing rights (notwithstanding the limits stipulated in the following paragraph). The 
shares are quoted on the four Spanish stock exchanges and traded through the SIBE (Spanish Stock 
Exchange Interlinking System). 
The Company is subject to the shareholder limitations stipulated in the twenty-third additional provi-
sion of Law 54/1997 of 27 November 1997 and article 30 of Electricity Industry Law 24/2013 of 26 De-
cember 2013.  
Pursuant to this legislation, any individual or entity may hold investments in the Company, provided that 
the sum of their direct or indirect interests in its share capital does not exceed 5% and their voting 
rights do not surpass 3%. These shares may not be syndicated for any purpose. Voting rights at the 
Parent are limited to 1% in the case of entities that carry out activities in the electricity sector, and 
individuals and entities that hold direct or indirect interests exceeding 5% of the share capital of such 
companies, without prejudice to the limitations for generators and suppliers set forth in article 30 of 
Electricity Industry Law 24/2013 of 26 December 2013. The shareholder limitations with regard to the 
Parent's share capital are not applicable to Sociedad Estatal de Participaciones Industriales (SEPI), 
which in any event will continue to hold an interest of no less than 10%. At 31 December 2019 and 2018 
SEPI holds a 20% interest in the Company's share capital. 
o Reserves 
This item comprises the following: 
• Legal reserve 
Spanish companies are obliged to transfer 10% of the profits for the year to a legal reserve until such 
reserve reaches an amount equal to 20% of the share capital. Until this reserve exceeds this limit, it 
is not distributable to shareholders and may only be used to offset losses, provided no other reserves 
are available. Under certain circumstances, it may also be used to increase share capital. At 31

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 49 of 87  
 
December 2019 and 2018 the legal reserve amounts to 20% of the Parent's share capital (Euros 54,199 
thousand). 
• Other reserves 
This heading includes voluntary reserves of the Parent, reserves in consolidated companies and 
first-time application reserves. At 31 December 2019 they amount to Euros 2,371,668 thousand (Euros 
2,223,486 thousand in 2018).  
In addition, this item includes statutory reserves amounting to Euros 337,081 thousand (Euros 
320,374 thousand in 2018), particularly the following: 
o The property, plant and equipment revaluation reserve amounting to Euros 247,022 thousand 
created by the Parent in 1996 (this reserve may be used, free of taxation, to offset accounting 
losses and increase share capital or, ten years after its creation, it may be transferred to freely 
distributable reserves, in accordance with Royal Decree-Law 2607/1996). Nonetheless, this 
balance may only be distributed, indirectly or directly, when the revalued assets have been fully 
depreciated, transferred or derecognised. 
o As provided for by article 25 of Law 27/2014 of 27 November 2014, the tax group headed by the 
Company has appropriated a capitalisation reserve of Euros 72,535 thousand, which is held by 
REE and REC, as permitted by article 62.1 d) of the aforementioned Law, corresponding to 2015 
(Euros 29,110 thousand), 2016 (Euros 15,406 thousand), 2017 (Euros 11,312 thousand), and 2018 
(Euros 16,707 thousand). This reserve will be restricted for a period of five years. Pursuant article 
62.1.d) of the aforementioned Law, the proposed capitalisation reserve for the year ended 31 
December 2019, in an amount of Euros 19,668 thousand, will be appropriated in REE, as a 
subsidiary of the tax group. Each company forming part of the tax group has adjusted income tax 
for 2019 in connection with this reserve (see note 22). 
• Own shares 
At 31 December 2019 the Parent held 2,024,844 own shares representing 0.37% of its share capital, with 
a par value of Euros 0.50 per share and a total par value of Euros 1,012 thousand, and an average acqui-
sition price of Euros 18.03 per share (at 31 December 2018 the Parent held 1,198,049 own shares repre-
senting 0.22% of its share capital, with a par value Euros 0.50 per share and a total par value of Euros 
599 thousand, and an average acquisition price of Euros 17.78 per share). 
These shares have been recognised as a reduction in equity for an amount of Euros 36,504 thousand at 
31 December 2019 (Euros 21,303 thousand in 2018). 
The Parent has complied with the requirements of article 509 of the Spanish Companies Act, which 
provides, except in the case of freely acquired own shares, that in listed companies the par value of 
own shares acquired directly or indirectly by the Company, plus the par value of the shares already held 
by the Parent and its subsidiaries, must not exceed 10% of subscribed share capital. The subsidiaries 
do not hold own shares or shares in the Parent. 
o Profit attributable to the Parent 
Profit for 2019 totals Euros 718,040 thousand (Euros 704,558 thousand at 31 December 2018). 
o Interim dividends and proposed distribution of dividends by the Parent 
The interim dividend authorised by the board of directors in 2019 has been recognised as a Euros 147,112 
thousand reduction in consolidated equity at 31 December 2019 (Euros 147,250 thousand at 31 December 
2018) (see note 18). 
On 29 October 2019 the Company's board of directors agreed to pay an interim dividend of Euros 0.2727 
(gross) per share with a charge to 2019 profit, which was paid on 7 January 2020 (Euros 0.2727 (gross) 
per share in 2018). 
Details of the dividends paid during 2019 and 2018 are as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 50 of 87  
 
 
2019 
2018 
Thousands of Euros 
% of par 
value 
Euros per 
share 
Amount 
% of par 
value 
Euros per 
share 
Amount 
Ordinary shares 
196.62% 
0.9831  
530,841 
183.76% 
0.9188  
495,138 
Total dividends paid 
196.62% 
0.9831  
530,841 
183.76% 
0.9188  
495,138 
Dividends charged to profit 
196.62% 
0.9831  
530,841 
183.76% 
0.9188  
495,138 
The Parent's board of directors also proposed to the shareholders at their general meeting the distri-
bution of a supplementary dividend of Euros 0.7792 per share, which would result in a total dividend for 
2019 of Euros 1.0519 per share (Euros 0.9831 in 2018). 
• 
Valuation adjustments 
o Financial assets at fair value through other comprehensive income 
At 31 December 2019 and 2018 this item reflects valuation adjustments to equity instruments classified 
as financial assets measured at fair value through other comprehensive income due to fluctuations in 
the share price of the Group's 5% investment in the listed company Redes Energéticas Nacionais, 
S.G.P.S., S.A. (hereinafter REN), the benchmark index for which is the Portuguese PSI 20. At 31 Decem-
ber 2019 this item totals Euros 24,604 thousand (Euros 15,063 thousand in 2018). 
o Hedging transactions 
This line item reflects changes in the value of derivative financial instruments. 
At 31 December 2019 this item totals a negative amount of Euros 82,699 thousand (a negative amount 
of Euros 62,237 thousand in 2018). 
o Translation differences 
This line item mainly comprises the exchange gains and losses arising from translation of the financial 
statements of foreign operations whose functional currency is not the Euro. At 31 December 2019 they 
amount to Euros 5,629 thousand (Euros 3,103 thousand in 2018). This increase is primarily due to the 
performance of the US Dollar against the Euro in 2019. 
 Non-controlling interests 
Non-controlling interests under equity in the consolidated statement of financial position reflect the non-
controlling interests in all the Hispasat Group companies and in the Chilean company REDENOR at 31 December 
2019. In 2018 this item included the non-controlling interest in the Chilean company REDENOR. In 2019 this 
balance amounts to Euros 98,630 thousand (Euros 832 thousand in 2018). Movement in 2019 and 2018 is as 
follows: 
Thousands of 
Euros 
31 
December 
2017 
Changes in 
consolidate
d Group and 
other 
Net 
translation 
differences 
Loss for the 
year 
31 
Decembe
r 2018 
Changes in 
consolidate
d Group and 
other 
Net 
translation 
differences 
Profit/(loss
) for the 
year 
31 
December 
2019 
Non-
controlling 
interests 
59  
817  
25  
(69) 
832  
98,299  
(952) 
451  
98,630  
Regarding the main non-controlling interests referred to above, a summary of the financial information on 
assets, liabilities and profit/loss at 31 December 2019 and 2018 of the investees is as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 51 of 87  
 
(*) Business combination added to the consolidated Group on 3 October 2019. The contribution to the Red Eléctrica Group is indicated as from that date 
(see note 5). 
 Grants and Other Non-current Revenue Received in Advance 
Movement in grants and other non-current revenue received in advance in 2019 and 2018 is as follows: 
 
Thousands of 
Euros 
31.12.2017 
Additions 
Applications 
Transfers 
31.12.2018 
Changes in the 
consolidated 
Group 
Additions 
Applications 
31.12.2019 
Capital grants  
186,566 
1,639 
(7,888) 
(397) 
180,317 
63,090 
 
(7,888) 
235,519 
Other grants 
and revenue 
received in 
advance 
410,556 
56,094 
(15,557) 
397 
451,093 
293 
36,693 
(17,836) 
470,243 
Total 
597,122 
57,733 
(23,445) 
- 
631,410 
63,383 
36,693 
(25,724) 
705,762 
Capital grants mainly include the amounts received by REE for the construction of electricity facilities and by 
the Hispasat Group for the construction of satellites. Applications reflect amounts taken to consolidated profit 
or loss on the basis of the useful life of the corresponding facilities and recognised under non-financial and 
other capital grants in the consolidated income statement. 
Other grants and other revenue received in advance mainly comprise amounts or technical facilities received 
as a result of agreements with third parties as well as income tax deductions for investments in the Canary 
Islands, which by their nature are similar to capital grants (see note 2 c). Applications mainly reflect the 
amounts taken each year to consolidated profit or loss on the basis of the useful life of the assets linked to 
the deductions, recognised under non-financial and other capital grants in the consolidated income 
statement. 
 Non-current and Current Provisions 
Movement in 2019 and 2018 is as follows: 
 
REDENOR 
HISPASAT GROUP 
(*) 
Thousands of Euros 
31/12/2019 
31/12/2018 
31/12/2019 
Non-current assets 
36,302  
10,700  
1,069,738  
Current assets  
1,142  
2,276  
98,404  
Assets 
37,444  
12,976  
1,168,142  
Non-current liabilities  
33,065  
8,334  
287,246  
Current liabilities 
1,501  
1,878  
104,855  
Liabilities 
34,566  
10,212  
392,102  
Equity 
2,879  
2,763  
776,041  
Income  
889  
607  
42,571  
Expenses 
1,034  
866  
9,568 
Gross operating profit  
(144) 
(260) 
33,003 
Profit/(loss) after tax 
62  
(231) 
5,396  
Profit/(loss) attributable to non-controlling interests 
19  
(69) 
432

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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Thousands of Euros 
31.12.2018 
Changes in 
the 
consolidated 
Group 
First-time 
application 
of IFRIC 23 
Additions 
Applica-
tions 
Transfers 
Actuarial 31.12.2019 
Non-current provisions 
  
  
  
  
  
  
  
Provisions for em-
ployee benefits 
62,310  
1,048  
-  
3,740  
(1,857) 
(6,317) 
13,701  
72,625  
Other provisions 
65,231  
-  
(4,367) 
18,319  
(402) 
-  
-  
78,781  
Total non-current 
127,541  
1,048  
(4,367) 
22,059  
(2,259) 
(6,317) 
13,701  
151,406  
Current provisions 
  
  
  
  
  
  
  
  
Other provisions 
-  
28,101  
-  
(150) 
(606) 
-  
-  
27,345  
Total current 
-  
28,101  
-  
(150) 
(606) 
-  
-  
27,345  
Total provisions 
127,541  
29,149  
(4,367) 
21,909  
(2,865) 
(6,317) 
13,701  
178,751  
 
 
Thousands of Euros 
31.12.2017 
Additions 
Applications Transfers 
Actuarial 
31.12.2018 
Non-current provisions 
  
  
  
  
  
Provisions for employee 
benefits 
62,480  
4,133  
(1,023) 
-  
(3,280) 
62,310  
Other provisions 
38,502  
26,730  
(858) 
857  
-  
65,231  
Total non-current 
100,982  
30,863  
(1,881) 
857  
(3,280) 
127,541  
 
Provisions for employee benefits reflect defined benefit plans, which essentially include the future 
commitments – specifically health insurance – undertaken by the Group vis-à-vis its personnel from the date 
of their retirement, calculated using actuarial studies carried out by an independent expert. In 2019 and 2018 
additions derive mainly from the annual accrual of these commitments, as well as changes in the actuarial 
assumptions used. These additions have been recognised as personnel expenses or finance costs, depending 
on their nature, and under reserves when they derive from changes in the actuarial assumptions (mainly in the 
case of obligations related to health insurance) or in consolidated profit or loss (in the case of past service 
obligations). The personnel expenses and finance costs recognised in this connection in the consolidated 
income statement for 2019 amount to Euros 1,883 thousand and Euros 606 thousand, respectively (Euros 1,479 
thousand and Euros 1,194 thousand, respectively, in 2018), whilst the reserves recognised in 2019 totalled Euros 
13,701 thousand, net of tax (negative Euros 3,280 thousand in 2018). Changes in the consolidated Group reflect 
the long-term incentive corresponding to 2018-2021 as a result of the business combination with Hispasat (see 
note 5).  
 
The assumptions made with regard to 2019 and 2018 were as follows: 
 
Actuarial assumptions 
 
2019 
2018 
Discount rate 
1.05% 
2.04% 
Cost increase  
3.0% 
3.0% 
Mortality table 
PERM/F 2000 new 
production 
PERM/F 2000 
new production 
 
Details of the effect of an increase/decrease of one percentage point in the cost of health insurance are as 
follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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2019 
Thousands of Euros 
+1% 
-1% 
Current service cost 
547  
(401) 
Interest cost of net post-employment medical costs 
6  
(4) 
Accumulated post-employment benefit obligation for health insurance 
16,259  
(12,229) 
 
Conversely, the effect of a decrease of half a percentage point in the discount rate used in 2019 for health 
insurance costs from 1.05% to 0.55%, in thousands of Euros, is as follows: 
 
 Discount rate 
 
Thousands of Euros 
1.05% 
0.55% 
Sensitivity 
Current service cost 
1,726 
1,989 
263 
Interest cost of net post-employment medical costs 
538 
283 
(255) 
Accumulated post-employment benefit obligation for health insurance 
63,293 
71,451 
8,158 
 
Provisions for employee benefits also include deferred remuneration schemes (see note 4 l). At 31 December 
2019 personnel expenses recognised in the consolidated income statement in this regard amount to Euros 
1,347 thousand (Euros 1,458 thousand in 2018). 
Other provisions basically include the amounts recorded by the Group every year to cover the potential 
unfavourable rulings relating to administrative proceedings, administrative disciplinary proceedings, judicial 
reviews, primarily of expropriation proceedings, and out-of-court claims, among others. The provisions 
recognised to cover these events are measured on the basis of the potential economic content of the ongoing 
appeals, litigation, claims and general legal or out-of-court proceedings to which the Group companies are 
party. This item also includes the provisions made to cover potential unfavourable rulings in relation to the 
application of the remuneration model for transmission activities in Spain (see note 3). Changes in the 
consolidated Group primarily reflect provisions in relation to the fair value of the contingent liabilities 
identified in the Hispasat Group business combination, mainly related to tax contingencies in Brazil (see note 
5). 
First-time application of IFRIC 23 includes the reclassification of Euros 4,367 thousand for corporate income 
tax payable in connection with the uncertainty over income tax treatments. 
The Group has assessed the risks and does not expect any events to arise that would amount to liabilities not 
considered in its financial statements or that would have a significant impact on its profits. At the 2019 
reporting date, the Group is involved in a number of ongoing proceedings, primarily judicial reviews and 
disciplinary proceedings.  
 Other Non-current Liabilities 
Other non-current liabilities basically include contract liabilities for the revenues received in advance from 
agreements with various telecommunications operators for the use of the telecommunications network 
capacity, recognised in the consolidated income statement based on the duration of the agreements, with 
expiry dates up to 2038, and amounting to Euros 32,934 thousand at 31 December 2019 (Euros 30,802 thousand 
at 31 December 2018). Euros 10,354 thousand was added to this item in 2019 from the Hispasat Group, reflecting 
revenues received in advance on account of future satellite capacity services to be rendered. 
This item also includes the non-current liabilities arising from the compensation paid by Électricité de France 
(hereinafter EDF) under the agreement signed in 1997 for the adaptation of electricity supply contracts, which 
amounted to Euros 23,625 thousand at 31 December 2019 (Euros 23,625 thousand at 31 December 2018). These 
are multi-year commitments and are therefore subject to the construction of facilities.

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 54 of 87  
 
 Financial Risk Management Policy 
The Group’s financial risk management policy establishes principles and guidelines to ensure that any 
significant risks that could affect the objectives and activities of the Red Eléctrica Group are identified, 
analysed, assessed, managed and controlled, and that these processes are carried out systematically and 
adhering to uniform criteria. 
A summary of the main guidelines that comprise this policy is as follows: 
• Risk management should be fundamentally proactive and directed towards the medium and long term, 
taking into account possible scenarios in an increasingly global environment. 
• Risk should generally be managed in accordance with consistent criteria, distinguishing between the 
importance of the risk (probability/impact) and the investment and resources required to reduce it. 
• Financial risk management should be focused on avoiding undesirable variations in the Group’s core value, 
rather than generating extraordinary profits. 
The Group’s finance management is responsible for managing financial risk, ensuring consistency with the 
Group’s strategy and coordinating risk management across the various Group companies, by identifying the 
main financial risks and defining the initiatives to be taken, based on different financial scenarios. 
The methodology for identifying, measuring, monitoring and controlling risk, as well as the management 
indicators and measurement and control tools specific to each risk, are documented in the financial risk 
manual. 
The financial risks to which the Group is exposed are as follows: 
a) Market risk 
Market risk reflects variations in the financial markets in terms of prices, interest and exchange rates, credit 
conditions and other variables that could affect short-, medium- and long-term finance costs. 
Market risk is managed on the borrowings to be arranged (the currency, maturity and interest rates), and 
through the use of hedging instruments that allow the financial structure to be modified. Market risk 
specifically includes: 
• Interest rate risk 
Interest rate fluctuations change the fair value of assets and liabilities that accrue interest at fixed rates 
and the future cash flows from assets and liabilities indexed to floating interest rates. The financial debt 
structure at 31 December 2019 and 2018 is as follows: 
 
2019 
2018 
Thousands of Euros 
Fixed rate 
Variable rate 
Fixed rate 
Variable rate 
Non-current issues 
2,669,621 
14,933 
3,279,141 
14,926 
Non-current bank borrowings 
1,473,276 
1,071,444 
1,157,598 
478,258 
Current issues 
702,898 
215,081 
287,995 
- 
Current bank borrowings  
131,083 
75,810 
173,305 
58,648 
Total gross financial debt 
4,976,878 
1,377,267 
4,898,040 
551,832 
Percentage 
78% 
22% 
90% 
10% 
The financial debt structure is low risk with moderate exposure to fluctuations in interest rates, as a result 
of the debt policy implemented, which aims to bring the cost of debt into line with the financial rate of 
return applied to the Group's regulated assets, among other objectives.

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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The interest rate risk to which the Group is exposed at 31 December 2019 and 2018 derives from changes in 
the fair value of derivative financial instruments and mostly affects equity, but not consolidated profit for 
the year. A sensitivity analysis of this risk is as follows (in thousands of Euros): 
 
Effect on consolidated equity of market inter-
est rate fluctuations 
 
2019 
2018 
Thousands of Euros 
+0.10% 
-0.10% 
+0.10% 
-0.10% 
Interest rate hedges: 
 
 
 
 
 - Cash flow hedges. Interest rate swap 
4,895 
(4,940) 
3,841 
(3,872) 
Interest rate and exchange rate hedges: 
 
 
 
 
 - Cash flow hedges. Cross currency swap 
135 
(137) 
249 
(253) 
This rise or decline of 0.10% in interest rates would have decreased or increased consolidated profit by 
Euros 1,075 thousand in 2019 and by Euros 1,144 thousand in 2018. 
The fair value sensitivity has been estimated using a valuation technique based on discounting future cash 
flows at prevailing market rates at 31 December 2019 and 2018. 
• Currency risk 
Currency risk management considers transaction risk arising on cash inflows and outflows in currencies 
other than the Euro (essentially USD and BRL), and translation risk, to which the Company is exposed when 
consolidating its subsidiaries and/or assets located in countries where the functional currency is not the 
Euro. 
With a view to reducing the currency risk on issues in the US private placements (USPP) market, the Group 
has arranged cash flow hedges through US Dollar/Euro cross-currency swaps on the principal and interest, 
which cover the amount and total term of the issue up to October 2035 (see note 18).  
To mitigate transaction risk, in 2019 the Group companies arranged forward cash flow hedges in the form 
of forward derivatives to hedge highly probable cash flows of certain revenue in US Dollars and certain 
payment commitments in Brazilian Reais (see note 19). Consequently, had the Euro strengthened or 
weakened by 10% against the hedged currencies at year end, the market values of those derivatives would 
have changed, and equity would have decreased or increased by approximately Euros 25 million at 31 
December 2019 (no impact at 31 December 2018). 
In order to mitigate translation risk on assets located in countries whose functional currency is not the 
Euro, the Group finances a portion of its investments in the functional currency. The Group has also 
arranged hedges of net investments in US Dollars through cross-currency swaps that will be in place until 
January 2021 (see note 19). Consequently, had the Euro strengthened or weakened by 10% against the 
currencies to which the Group is exposed at year end, the Parent's equity would have decreased or 
increased by approximately Euros 14 million at 31 December 2019 (Euros 7 million at 31 December 2018). 
• Credit risk 
In light of the nature of revenues from electricity transmission and electricity system operation, and the 
solvency of the electricity system agents, the Red Eléctrica Group’s principal activities are not significantly 
exposed to credit risk. For the Group’s other activities, credit risk is mainly managed through instruments 
to reduce or limit such risk. 
In any event, credit risk is managed through policies that contain certain requirements regarding 
counterparty credit quality, and further guarantees are requested when necessary. 
At year end the Group's exposure to credit risk in connection with the fair value of its derivatives is 
insignificant, having entered into collateral assignment agreements entailing collateral swaps with various 
counterparties since 2015 in order to mitigate this risk.

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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At 31 December 2019, less than 1% of balances are past due (less than 1% in 2018), and the companies do 
not consider there to be any risk as regards recoverability. The credit quality of the receivables is 
considered to be high. 
b) Liquidity risk 
Liquidity risk arises due to differences between the amounts or dates of collection and payment of the Group 
companies' assets and liabilities.  
Liquidity risk is mostly managed by controlling the timing of financial debt and maintaining a considerable 
volume of available capital during the year, setting maximum limits of amounts falling due for each period 
defined. This process is carried out at Group company level, in accordance with the practices and limits set by 
the Group. The limits established vary according to the geographical area, so as to ensure that the liquidity of 
the market in which the companies operate is taken into account. Furthermore, the liquidity risk management 
policy entails preparing cash flow projections in the main currencies in which the Group operates, taking into 
consideration the level of liquid assets and funds available according to these projections, and monitoring the 
liquidity indicators as per the consolidated statement of financial position and comparing these with market 
requirements.  
The Group's financial debt at 31 December 2019 has an average maturity of 5.2 years (5.3 years at 31 December 
2018). Details of the maturities of issues and bank borrowings are provided in note 18. 
The Group's liquidity position for 2019 was based on its robust capacity to generate cash flows, supported by 
undrawn credit facilities. At 31 December 2019 the undrawn amount of these credit facilities is Euros 1,768 
million (non-current balance of Euros 1,576 million and current balance of Euros 192 million). 
c) Price risk 
The Group is exposed to price risk relating to equity instruments classified as financial assets at fair value 
through other comprehensive income in the consolidated statement of financial position. Equity investments 
on quoted markets basically comprise the 5% interest held by the Group in REN. At 31 December 2019 had the 
listed share price of the Portuguese company REN been 10% higher or lower, equity would have increased or 
decreased, respectively, by approximately Euros 7 million (Euros 6 million in 2018). 
 Financial Assets and Financial Liabilities 
a) Financial assets 
Details of the Red Eléctrica Group's current and non-current financial assets at 31 December 2019 and 2018 are 
as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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31/12/2019 
Thousands of Euros 
At fair value 
through other 
comprehensive 
income 
At fair value 
through profit or 
loss 
At amor-
tised cost 
Hedging 
derivatives 
Total 
Equity instruments 
91,206 
- 
- 
- 
91,206 
Derivatives 
- 
- 
- 
14,732 
14,732 
Other financial assets 
- 
2,542 
18,823 
- 
21,365 
Non-current 
91,206 
2,542 
18,823 
14,732 
127,303 
Other financial assets 
- 
- 
58,200 
- 
58,200 
Derivatives 
- 
- 
- 
11,311 
11,311 
Current 
- 
- 
58,200 
11,311 
69,511 
Total  
91,206 
2,542 
77,023 
26,043 
196,814 
 
 
 
31/12/2018 
Thousands of Euros 
At fair value through 
other 
comprehensive 
income 
At fair value 
through 
profit or 
loss 
At amortised 
cost 
Hedging 
derivatives 
Total 
Equity instruments 
81,666 
- 
- 
- 
81,666 
Derivatives 
- 
- 
- 
11,020 
11,020 
Other financial assets 
- 
6,734 
21,511 
- 
28,245 
Non-current 
81,666 
6,734 
21,511 
11,020 
120,931 
Other financial assets 
- 
- 
54,213 
- 
54,213 
Current 
- 
- 
54,213 
- 
54,213 
Total  
81,666 
6,734 
75,724 
11,020 
175,144 
 
• Equity instruments 
Equity instruments essentially comprise the 5% interest held by the Group in REN, a holding company that 
encompasses the operation and use of electricity transmission assets and various gas infrastructure in 
Portugal. This interest was acquired in 2007 for Euros 98,822 thousand. In 2017 the Group subscribed 
6,659,563 new shares in the share capital increase carried out by REN for an amount of Euros 12,500 
thousand, thereby maintaining its 5% interest in this company  
At 31 December 2018 REN's consolidated equity totalled Euros 1,463,837 thousand and the profit after tax 
amounted to Euros 115,715 thousand. 
These instruments were classified as financial assets measured at fair value through other comprehensive 
income (see note 2 b). The value of this investment is subject to the listed share price. In 2019 the fair value 
of this equity instrument increased and the corresponding valuation adjustment was recognised directly 
under equity. 
At 31 December 2019 the Group has calculated the increase in value of this investment as Euros 9,541 
thousand (a Euros 1,501 thousand decrease in 2018). 
• Derivatives  
Details of derivative financial instruments are provided in note 19.

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 58 of 87  
 
• Other financial assets 
The balance at 31 December 2019 mainly comprises the loan of Euros 24,677 thousand extended to TEN 
(Euros 71,724 thousand at 31 December 2018), which earns interest at a Libor-pegged rate plus 270 b.p., and 
guarantees and loans extended by the Group to its personnel, which fall due in the long term. There are no 
significant differences between the fair value and the carrying amount at 31 December 2019 and 2018.  
This item also comprises the investment in economic interest groups (EIGs), measured at Euros 2,542 
thousand (Euros 6,734 thousand in 2018). These EIGs engage in the lease of assets operated by an unrelated 
party, which retains most of the risks and rewards of the activity, while the Group only avails of the tax 
incentives pursuant to Spanish legislation. The Group recognises the tax losses incurred by these EIGs 
against the investments, together with the corresponding finance income (see note 23 e) reflecting the 
difference compared to income tax payable to the taxation authorities. 
• Fair value hierarchy levels 
Details of the Group's financial assets measured at fair value using the inputs defined for this calculation 
at 31 December 2019 and 2018 are as follows: 
31/12/2019 
Thousands of Euros 
Level 1 
Level 2 
Level 3 
Total bal-
ance 
Equity instruments 
90,738 
- 
468 
91,206 
Derivatives 
- 
26,043 
- 
26,043 
Other financial assets 
- 
2,542 
- 
2,542 
 
31/12/2018 
Thousands of Euros 
Level 1 
Level 2 
Level 3 
Total 
balance 
Equity instruments 
81,197 
468 
81,666 
Derivatives 
11,020 
11,020 
Other financial assets 
6,734 
- 
6,734 
Level 1 equity instruments reflect the 5% interest held by the Group in the listed company REN. Level 3 reflects 
the investments in ACEFAT and CORESO.  
b) Financial liabilities  
Details of the Red Eléctrica Group's current and non-current financial liabilities at 31 December 2019 and 2018 
are as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 59 of 87  
 
 
31/12/2019 
Thousands of Euros 
Financial liabilities 
Hedging derivatives 
Total 
Loans and borrowings 
2,545,355 
- 
2,545,355 
Bonds and other marketable securities 
2,713,120 
- 
2,713,120 
Derivatives 
- 
48,266 
48,266 
Other financial liabilities (1) 
60,286 
- 
60,286 
Non-current 
5,318,760 
48,266 
5,367,027 
Loans and borrowings 
221,206 
- 
221,206 
Bonds and other marketable securities 
973,129 
- 
973,129 
Derivatives 
- 
4,996 
4,996 
Other financial liabilities  
648,556 
- 
648,556 
Current 
1,842,891 
4,996 
1,847,887 
Total 
7,161,652 
53,262 
7,214,913 
 
 
31/12/2018 
Thousands of Euros 
Financial liabilities 
Hedging derivatives 
Total 
Loans and borrowings 
1,665,345 
- 
1,665,345 
Bonds and other marketable securities 
3,315,412 
- 
3,315,412 
Derivatives 
- 
39,944 
39,944 
Other financial liabilities (2) 
477 
- 
477 
Non-current 
4,981,234 
39,944 
5,021,178 
Loans and borrowings 
215,306 
- 
215,306 
Bonds and other marketable securities 
347,022 
- 
347,022 
Derivatives 
- 
- 
- 
Other financial liabilities  
634,542 
- 
634,542 
Current 
1,196,870 
- 
1,196,870 
Total 
6,178,104 
39,944 
6,218,049 
 
(1) 
Mainly reflects non-current payables to suppliers of fixed assets and non-current lease payables. 
(2) 
Reflects long-term security and other deposits received. 
• Loans and borrowings, bonds and other marketable securities 
The carrying amount and fair value of loans and borrowings and issues of bonds and other marketable 
securities at 31 December 2019 and 2018, excluding interest payable, are as follows: 
 
Carrying amount 
Fair value 
Thousands of Euros 
2019 
2018 
2019 
2018 
Issues in Euros 
3,086,602  
3,144,659  
3,310,737 
3,336,928  
Issues in US Dollars 
544,496  
458,748  
653,965 
511,956  
Bank borrowings in Euros 
2,401,301  
1,640,808  
2,441,959 
1,639,750  
Bank borrowings in foreign currency 
350,312  
227,002  
367,612 
226,529  
Total  
6,382,711  
5,471,217  
6,774,273  
5,715,163

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 60 of 87  
 
The fair value of all bank borrowings and issues has been estimated using valuation techniques based on 
discounting future cash flows at the market rates in force at each date (level 2 of the hierarchy). 
At 31 December 2019 the accrued interest payable amounts to Euros 70,098 thousand (Euros 71,868 
thousand in 2018). 
Issues in Euros at 31 December 2019 include: 
o Eurobonds issued by Red Eléctrica Financiaciones, S.A.U. (hereinafter REF), totalling Euros 2,871,521 
thousand (Euros 3,183,659 thousand in 2018). Euros 284 million was repaid in 2019. One bond issue 
amounting to Euros 600 million was carried out in 2018. 
o Promissory notes issued on the Euromarket by REF as part of the “Euro Commercial Paper Programme” 
(ECP Programme), falling due in the short term, were issued and repaid in 2019. Euros 215 million is 
outstanding at 31 December 2019. 
Issuance in US Dollars at 31 December 2019 amounted to Euros 544,496 thousand (Euros 458,748 thousand 
in 2018), comprising a US Dollars 500 million issue on the US private placement (USPP) market, of which US 
Dollars 430 million is payable, as well as three US Dollar bond issues made in Peru, two in 2015 and one 
following the acquisition of CCNCM, of which US Dollars 189.2 million is payable at 31 December 2019 (see 
note 17 for an analysis of currency risk). 
Bank borrowings in Euros at 31 December 2019 include non-current loans and credit facilities totalling 
Euros 1,807,881 thousand (Euros 1,529,088 thousand in 2018) and syndicated credit facilities amounting to 
Euros 593,420 thousand (Euros 111,720 thousand in 2018).  
Bank borrowings in foreign currency at 31 December 2019 include non-current loans and credit facilities in 
US Dollars amounting to Euros 350,312 thousand (Euros 227,002 thousand in 2018). 
Details of the maturities of bond issues and bank borrowings at 31 December 2019 are as follows: 
 
 
Thousands of 
Euros 
2020 
2021 
2022 
2023 
2024 
Thereafter 
Amortised 
cost and 
other adjust-
ments 
Total 
Issues in Euros 
765,096 
-  
400,000 300,000 
-  
1,690,000 
(68,494) 3,086,602 
Issues in US 
Dollars 
164,714 
4,870 
5,240 
5,629 
6,041 
364,696 
(6,694) 
544,496 
Bank 
borrowings in 
Euros 
160,716 
209,353 
387,188 
117,189 
825,665 
705,931 
(4,741) 
2,401,301 
Bank 
borrowings in 
US Dollars 
46,924 
26,407 
154,641 
58,354 
610 
64,113 
(737) 
350,312 
Total 
1,137,450 
240,630 
947,069 
481,172 
832,316 
2,824,740 
(80,666) 
6,382,711 
The average interest rate of loans and borrowings and bond issues was 2.29% in 2019 (2.42% in 2018). 
At 31 December 2019 Group companies have undrawn credit facilities amounting to Euros 1,768 million, of 
which Euros 1,576 million expire in the long term (Euros 1,291 million at 31 December 2018) and Euros 192 
million in the short term (Euros 535 million at 31 December 2018). 
 
Details of bonds and other marketable securities at 31 December 2019 and 2018 are as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 61 of 87  
 
 
31/12/2019 
Thousands of Euros 
Opening 
outstanding 
balance at 
31/12/2018 
 (+) Issues 
(-) Repur-
chases or re-
demptions 
(+/-) Ex-
change rate 
and other ad-
justments 
Closing 
outstand-
ing bal-
ance at 
31/12/2019 
Debt securities requiring a 
prospectus to be filed 
3,144,659 
1,342,370 
(1,411,377) 
10,950 
3,086,602 
Debt securities not requiring a 
prospectus to be filed 
- 
- 
- 
- 
- 
Other debt securities issued 
outside EU member states 
458,748 
- 
(8,606) 
94,354 
544,496 
Total 
3,603,407 
1,342,370 
(1,419,983) 
105,304 
3,631,098 
 
 
31/12/2018 
Thousands of Euros 
Opening 
outstanding 
balance at 
31/12/2017 
 (+) Issues 
(-) 
Repurchases or 
redemptions 
(+/-) Exchange 
rate and other 
adjustments 
Closing 
outstanding 
balance at 
31/12/2018 
Debt securities requiring a prospectus to 
be filed 
3,183,842 
1,125,008 
(1,129,400) 
(34,791) 
3,144,659 
Debt securities not requiring a prospectus 
to be filed 
- 
- 
- 
- 
- 
Other debt securities issued outside EU 
member states 
441,533 
- 
 
17,215 
458,748 
Total 
3,625,375 
1,125,008 
(1,129,400) 
(17,576) 
3,603,407 
 
The outstanding balance at 31 December 2019 and 2018 of debt securities requiring a prospectus to be filed 
relates to issues registered in Dublin and Luxembourg. 
At 31 December 2019 other debt securities issued outside EU member states, within exchange rate and 
other adjustments, include Euros 81 million from the addition to the consolidated Group of CCNCM. At 31 
December 2018 a negative amount of Euros 40.1 million was included in relation to the application of IFRS 
9 to financial liabilities that have not been substantially modified in respect of debt securities that required 
a prospectus to be filed. 
Details of changes in liabilities related to financing instruments during 2019, distinguishing between those 
that entailed cash flows and those that did not, are as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 62 of 87  
 
 
31/12/2018 
Movements en-
tailing cash flows 
Movements not entailing cash 
flows 
31/12/2019 
Thousands of Euros 
Exchange dif-
ferences 
Other changes 
Issues in Euros 
3,144,659  
(69,007) 
-  
10,950  
3,086,602  
Issues in US Dollars 
458,748  
(8,606) 
12,936  
81,418  
544,496  
Bank borrowings in Euros 
1,640,808  
474,650  
-  
285,843  
2,401,301  
Bank borrowings in foreign 
currency 
227,002  
54,201  
2,899  
66,211  
350,312  
Total debt 
5,471,217  
451,238  
15,835  
444,422  
6,382,711  
Other changes in issues in US Dollars and bank borrowings in foreign currency essentially reflect the 
addition of CCNCM to the consolidated Group. Other changes in bank borrowings in Euros primarily reflect 
the addition of the Hispasat Group to the consolidated Group. 
• Derivatives 
Details of derivative financial instruments are provided in note 19. 
• Other non-current financial liabilities  
Other non-current financial liabilities mainly comprise in-orbit incentives related to satellites, which form 
part of the asset acquisition price and are paid over the useful life of the satellite. This price component is 
subject to the correct functioning of the satellites during their useful life and the manufacturer is paid the 
amount plus the contractually-stipulated interest, which is reflected in the consolidated income 
statement. 
• Other current financial liabilities 
Details of this item at 31 December 2019 and 2018 are as follows: 
Thousands of Euros 
2019 
2018 
Dividend payable (note 13) 
147,112 
147,250 
Suppliers of fixed assets and other payables 
334,194 
331,550 
Other payables 
167,250 
155,742 
Total 
648,556 
634,542 
Suppliers of fixed assets essentially reflect balances incurred on the construction of electricity facilities.   
Other payables basically comprise items pending settlement with respect to the Spanish electricity system 
and security deposits received. They also include the current lease payables arising from the application 
of IFRS 16, amounting to Euros 4,077 thousand. 
• Fair value hierarchy levels 
Details of Group financial liabilities not included under the headings of loans and borrowings or bonds and 
other marketable securities measured at fair value using the inputs defined for this calculation at 31 
December 2019 and 2018 are as follows: 
 
 
31/12/2019 
Thousands of Euros 
Level 1 
Level 2 
Level 3 
Total balance 
Derivatives 
- 
53,262 
- 
53,262

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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31/12/2018 
Thousands of Euros 
Level 1 
Level 2 
Level 3 
Total balance 
Derivatives 
- 
39,944 
- 
39,944 
Level 2 comprises foreign currency and interest rate derivatives. There are no significant differences 
between the fair value and the carrying amount at 31 December 2019 and 2018. Liabilities at amortised cost 
are not disclosed by fair value hierarchy level. 
 Derivative Financial Instruments 
In line with its financial risk management policy, the Red Eléctrica Group has arranged four types of derivative 
financial instruments: interest rate swaps, forward interest rate swaps, cross-currency swaps and currency 
forwards. Interest rate swaps consist of exchanging debt at variable interest rates for debt at fixed rates, in a 
swap where the future cash flows to be hedged are the interest payments. Forward interest rate swaps cover 
the finance cost of highly probable forecast future transactions. Similarly, cross-currency swaps allow fixed- 
or variable-rate debt in US Dollars to be exchanged for fixed- or variable-rate debt in Euros, thereby hedging 
future interest and capital flows in US Dollars. Lastly, currency forwards hedge currency risk related with 
highly probably forecast transactions denominated in a currency other than the Euro. 
As regards the measurement of derivative financial instruments and hedging instruments disclosed in these 
notes, the application of IFRS 13 (see note 4 n) entails an adjustment to the valuation techniques used to 
calculate the fair value of derivative financial instruments. The Group has incorporated a credit risk 
adjustment to reflect own and counterparty risk in the fair value of derivatives using generally accepted 
measurement models. 
To eliminate the credit risk from the cross-currency swaps arranged to hedge the exchange rate for USPP 
issuance, collateral assignment agreements entailing collateral swaps were entered into with the 
counterparties in 2015. 
When determining the credit risk adjustment for other derivatives, the Group applied a technique based on 
calculating total expected exposure (which considers current and potential exposure) through the use of 
simulations, adjusted for the probability of default over time and for loss given default allocable to the Group 
and to each counterparty. 
The total expected exposure of derivative financial instruments is determined using observable market inputs, 
such as interest rate curves, exchange rates and volatilities based on market conditions at the measurement 
date. 
The inputs used to determine own and counterparty credit risk (probability of default) are mostly based on own 
credit spreads and those of comparable companies currently traded on the market (credit default swap (CDS) 
curves, IRR of debt issues, etc.). 
Furthermore, adjustments of fair value for credit risk take into account credit enhancements for guarantees 
and collateral when determining the loss given default to be used for each position. Loss given default is 
considered to be constant over time. A minimum recovery rate of 40% has been used in cases where there is 
no credit enhancement for guarantees or collateral. 
Based on the fair value hierarchy levels detailed in note 4, the Group has considered that the majority of the 
inputs used to determine the fair value of derivative financial instruments are categorised within Level 2, 
including the data used to calculate the own and counterparty credit risk adjustment.  
The Group has observed that the impact of using Level 3 inputs for the overall measurement of derivative 
financial instruments is not significant. Consequently, the Group has determined that the entire derivative 
financial instrument portfolio can be categorised within Level 2 of the fair value hierarchy.

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 64 of 87  
 
As regards observable inputs, the Group uses mid-market prices obtained from reputable external information 
sources in the financial markets.  
Details of hedges at 31 December 2019 and 2018 in thousands of Euros are as follows: 
 
 
 
 
2019 
  
 
 
 
Non-current 
Current 
Thousands of Euros 
Principal 
Term to 
expiry 
Assets 
Liabili-
ties 
Assets 
Liabili-
ties 
Interest rate hedges: 
 
 
 
 
 
 
- Cash flow hedges: 
 
 
 
 
 
 
Interest rate swap 
Euros 325,000 
thousand 
Up to 2022 
-  
(4,030) 
-  
(4,384) 
Interest rate swap 
Euros 47,460 
thousand 
Up to 2021 
-  
(743) 
-  
-  
Interest rate swap 
Euros 42,498 
thousand 
Up to 2021 
-  
(742) 
-  
-  
- Forward cash flow hedges: 
 
 
 
 
 
 
Forward interest rate swap beginning 
in 2020 
Euros 450,000 
thousand 
Up to 2029 
-  
(24,677) 
-  
-  
Forward interest rate swap beginning 
in 2021 
Euros 200,000 
thousand 
Up to 2027 
1,325 
(6,016) 
-  
-  
Forward interest rate swap beginning 
in 2022 
Euros 300,000 
thousand 
Up to 2028 
2,718 
(8,352) 
-  
-  
Forward interest rate swap beginning 
in 2023 
Euros 100,000 
thousand 
Up to 2029 
1,369 
(1,346) 
-  
-  
Exchange rate hedges: 
 
 
 
 
 
 
- Hedges of a net investment: 
 
 
 
 
 
 
Cross-currency swap 
US Dollars 
150,000 thousand Up to 2021 
4,462 
-  
-  
-  
- Forward cash flow hedges: 
 
 
 
 
 
 
Currency forward 
US Dollars 36,116 
thousand 
Up to 2021 
24 
-  
159 
(93) 
Currency forward 
BRL 1,775,000 
thousand 
Up to 2020 
-  
-  
-  
(519) 
Interest rate and exchange rate hedges  
 
 
 
 
 
- Cash flow hedges (cross currency swaps): 
 
 
 
 
 
Interest rate hedge 
US Dollars 430,000 
thousand 
Up to 2035 
(5,131) 
(9,003) 
(806) 
-  
Exchange rate hedge 
9,965 
6,643 
11,958 
-  
Total 
 
 
14,732 (48,266) 
11,311 
(4,996)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 65 of 87  
 
 
 
 
2018 
 
 
 
Non-current 
Thousands of Euros 
Principal 
Term to expiry 
Assets 
Liabilities 
Interest rate hedges: 
 
 
 
 
- Cash flow hedges: 
 
 
 
 
Interest rate swap 
Euros 280,000 thousand Up to 2022 
-  
(16,633) 
Interest rate swap 
Euros 57,120 thousand 
Up to 2021 
-  
(990) 
- Forward cash flow hedges: 
 
 
 
 
Forward interest rate swap beginning in 
2019 
Euros 140,000 thousand 
Up to 2026 
-  
(6,493) 
Forward interest rate swap beginning in 
2020 
Euros 200,000 thousand Up to 2026 
-  
(6,983) 
Forward interest rate swap beginning in 
2021 
Euros 50,000 thousand 
Up to 2026 
-  
(623) 
Forward interest rate swap beginning in 
2022 
Euros 100,000 thousand 
Up to 2028 
-  
(722) 
Exchange rate hedges: 
 
 
 
 
- Hedges of a net investment: 
 
 
 
 
Cross-currency swap 
US Dollars 150,000 
thousand 
Up to 2021 
6,482 
-  
Interest rate and exchange rate hedges 
 
 
 
 
- Cash flow hedges (cross currency swaps): 
 
 
 
 
  Interest rate hedge 
US Dollars 430,000 
thousand 
Up to 2035 
(4,397) 
(19,910) 
  Exchange rate hedges 
 
8,935 
12,410 
Total 
 
 
11,020 
(39,944) 
Details of the expected cash flows from derivatives, which are similar to the expected impact on profit or loss, 
by year of occurrence, are as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 66 of 87  
 
Thousands of Euros 
Principal 
Term to 
expiry 
2020 
2021 
2022 
2023 2024 
2025 and 
thereafter 
Total 
Interest rate hedges: 
 
 
 
 
 
 
 
 
- Cash flow hedges: 
 
 
 
 
 
 
 
 
 
Interest rate swap 
Euros 
325,000 
thousand 
Up to 2022 
(4,384) 
-  (4,030) 
-  
-  
-  
(8,414) 
Interest rate swap 
Euros 
47,460 
thousand 
Up to 2021 
-  (743) 
-  
-  
-  
-  
(743) 
Interest rate swap 
Euros 
42,498 
thousand 
Up to 2021 
-  (742) 
-  
-  
-  
-  
(742) 
- Forward cash flow 
hedges: 
 
 
 
 
 
 
 
 
 
Forward interest rate 
swap beginning in 2020 
Euros 
450,000 
thousand 
Up to 2029 
-  
-  
-  
-  
-  
(24,677) (24,677) 
Forward interest rate 
swap beginning in 2021 
Euros 
200,000 
thousand 
Up to 2027 
-  
-  
-  
-  
-  
(4,691) 
(4,691) 
Forward interest rate 
swap beginning in 2022 
Euros 
300,000 
thousand 
Up to 2028 
-  
-  
-  
-  
-  
(5,634) 
(5,634) 
Forward interest rate 
swap beginning in 2023 
Euros 
100,000 
thousand 
Up to 2029 
-  
-  
-  
-  
-  
23 
23 
Exchange rate hedges: 
 
 
 
 
 
 
 
 
- Hedges of a net 
investment: 
 
 
 
 
 
 
 
 
 
Cross-currency swap 
US Dollars 
150,000 
thousand 
Up to 2021 
-  4,462 
-  
-  
-  
-  
4,462 
- Forward cash flow 
hedges: 
 
 
 
 
 
 
 
 
 
Currency forward 
US Dollars 
36,116 
thousand 
Up to 2021 
66 
24 
-  
-  
-  
-  
90 
Currency forward 
BRL 
1,775,000 
thousand 
Up to 2020 
(519) 
-  
-  
-  
-  
-  
(519) 
Interest rate and exchange rate hedges 
 
 
 
 
 
 
 
- Cash flow hedges (cross currency swaps): 
 
 
 
 
 
 
 
Interest rate hedge 
US Dollars 
430,000 
thousand 
Up to 2035 
(806) 
-  
-  
-  
-  
(14,134) (14,940) 
Exchange rate hedges 
11,958 
-  
-  
-  
-  
16,608 
28,566 
Total 
 
 
6,315 3,001 (4,030) 
-  
-  
(32,505) (27,219)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 67 of 87  
 
 Trade and Other Payables 
Details of this item at 31 December 2019 and 2018 are as follows: 
Thousands of Euros 
2019 
2018 
Suppliers 
311,879 
313,759 
Other payables 
61,490 
50,278 
Current tax liabilities (note 22) 
23,574 
3,485 
Total 
396,943 
367,522 
Suppliers comprise amounts not yet due for the purchase of goods and services in the course of the Group’s 
trade operations, essentially payables arising from repairs and maintenance work and modifications to 
electricity facilities, as well as balances pending settlement vis-à-vis Spanish electricity system agents. 
Other payables mainly reflect VAT payable to the taxation authorities, salaries payable and other amounts not 
yet due for the purchase of goods and services. 
 Average Supplier Payment Period. “Reporting Requirement”, Third Additional 
Provision of Law 15/2010 of 5 July 2010 
The Spanish Accounting and Auditing Institute (ICAC) resolution of 29 January 2016, concerning the 
information that must be disclosed in the notes to the annual accounts in relation to the average supplier 
payment period in commercial transactions, clarifies and systematises the information that trading 
companies must include in the notes to individual and consolidated annual accounts, in compliance with the 
reporting requirement of the third additional provision of Law 15/2010 of 5 July 2010, which amends Law 3/2004 
of 29 December 2004, establishing measures to combat late payments in commercial transactions. 
The scope of this resolution also extends to trading companies that prepare consolidated annual accounts, 
although only with respect to fully consolidated subsidiaries or equity-accounted investees registered in 
Spain, irrespective of the financial reporting framework under which the accounts are prepared. 
The information on the average supplier payment period for 2019 and 2018 is as follows: 
 
In days 
2019 
2018 
Average supplier payment period 
47.6 
48.0 
Transactions paid ratio 
48.4 
48.8 
Transactions payable ratio 
22.4 
15.2 
 
Thousands of Euros 
2019 
2018 
Total payments made 
401,252 
379,209 
Total payments outstanding 
12,901 
10,056 
 
 Taxation 
The tax group headed by Red Eléctrica Corporación, S.A. has filed consolidated tax returns in Spain since 2002. 
At 31 December 2019 the tax group includes the Parent, REE, REI, REF, REINTEL, REINCAN, RESTEL and RETIT.

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 68 of 87  
 
In 2019, Hispasat, S.A., Hispasat Canarias, S.L. and Hispamar Exterior, S.L., subsidiaries of REC, file 
consolidated tax returns in Spain as part of a group headed by Hispasat, S.A. 
Companies that do not form part of the tax groups are subject to the legislation applicable in their respective 
countries. 
A reconciliation of the prevailing tax rate in Spain with the tax rate applicable to the Group is as follows: 
 
Thousands of Euros 
2019 
2018 
Consolidated accounting profit for the year before tax 
948,725  
936,252 
Permanent differences and consolidation adjustments 
(31,328) 
(21,843) 
Consolidated taxable accounting income 
917,397  
914,410 
Tax rate 
25% 
25% 
Consolidated taxable accounting income at tax rate 
229,349  
228,602 
Effect of applying different tax rates 
3,660  
1,418  
Tax calculated at the tax rate of each country 
233,010  
230,020 
Deductions 
(7,218) 
(1,111) 
Other adjustments 
4,442  
2,855  
Income tax 
230,234  
231,763 
Current income tax 
248,868  
246,674 
Deferred income tax 
(18,633) 
(14,911) 
Effective tax rate 
24.27% 
24.75% 
 
 The effective rate of income tax is primarily influenced by permanent differences and by deductions in tax 
payable. The effective tax rate in 2019 is 24.27% (24.75% in 2018). 
Permanent differences in 2019 and 2018 mainly arise from the capitalisation reserve adjustment resulting from 
the increase in equity in accordance with article 25 of Income Tax Law 27/2014 of 27 November 2014. As 
permitted by article 62.1 d) of Law 27/2014, the capitalisation reserve for 2019 will be held in REE, a subsidiary 
of the tax group (see note 13). 
Deductions mainly comprise those for research, development and technological innovation expenditure, as 
well as international double taxation relief. 
Given the financial nature of the deduction for investments in fixed assets in the Canary Islands, it is treated 
as a grant, and its impact on the consolidated income statement is deferred over several years based on the 
useful lives of the assets for which it was awarded (see note 4 j).  
Deductions recognised as grants in 2019 amount to Euros 3,969 thousand (Euros 3,556 thousand in 2018) and 
the amount still to be recognised at 31 December 2019 is Euros 106,746 thousand (Euros 99,330 thousand in 
2018).  
Current receivables from and payables to public entities at 31 December 2019 and 2018 are as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 69 of 87  
 
Thousands of Euros 
2019 
2018 
Current receivables 
 
 
Recoverable VAT 
10,873 
12,548 
Recoverable income tax (note 12) 
10,004 
2,059 
Other recoverable taxes 
3,524 
1,193 
Current payables 
 
 
VAT payable (note 20) 
30,284 
28,981 
Income tax payable (note 20) 
23,574 
3,485 
Other taxes payable 
6,923 
4,620 
 In 2019 and 2018, adjustments were made to taxable income to reflect recognition of the EIGs in which the 
Group has interests, amounting to Euros 77,822 thousand and Euros 67,045 thousand, respectively. 
Temporary differences in the recognition of income and expenses for accounting and tax purposes in the Red 
Eléctrica Group at 31 December 2019 and 2018, and the corresponding cumulative tax effect (assets and 
liabilities) are as follows:  
  
2019 
2018 
  
Income 
state-
ment 
Income 
and 
expense 
recognised 
directly in 
equity 
Business 
combinations, 
first-time 
application of 
IFRS and 
other 
Total 
Income 
state-
ment 
Income 
and 
expense 
recognised 
directly in 
equity 
Business 
combinations, 
first-time 
application of 
IFRS and 
other 
Total 
Thousands of Euros 
Varia-
tion 
Variation 
Variation 
Varia-
tion 
Variation 
Variation 
Deferred tax assets: 
  
  
  
  
  
  
  
  
Originating in prior 
years 
78,088  
26,677  
269  105,034  
83,319  
29,466  
-  112,785  
Movement in the 
year 
(4,562) 
6,734  
12,348  
14,520  
(5,231) 
(2,788) 
269  
(7,750) 
Total gross deferred 
tax assets 
73,526  
33,411  
12,617  119,554  78,088  
26,677  
269  105,034  
Offsetting of deferred taxes from the tax group in Spain 
(75,247)   
  
  
(77,050) 
Total net deferred tax assets 
44,307    
  
  
27,984  
Deferred tax liabilities: 
  
  
  
  
  
  
  
Originating in prior 
years 
520,915  
16,818  
12,441  550,174  541,057  
16,379  
-  557,436  
Movement in the 
year 
(23,195) 
(684) 
5,207  (18,672) (20,142) 
440  
12,441  
(7,261) 
Total gross deferred 
tax liabilities 
497,720  
16,134  
17,648  531,502  520,915  
16,819  
12,441  550,175  
Offsetting of deferred taxes from the tax group in Spain 
(75,247)   
  
  
(77,050) 
Total net deferred tax liabilities 
456,255    
  
  
473,125  
The business combinations, first-time application of IFRS and other column for 2019 mainly reflects the 
deferred tax assets and liabilities from the Hispasat Group companies and CCNCM (see note 5).

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 70 of 87  
 
Deferred tax assets and liabilities at 31 December 2019 and 2018 are as follows: 
Thousands of Euros 
2019 
2018 
Commitments with personnel 
23,130  
19,246  
Grants 
633  
684  
Financial derivatives 
24,275  
20,789  
Tax loss carryforwards 
2,637  
5,490  
Unused deductions 
14,406  
-  
Balance sheet revaluation - Law 16/2012 
19,707  
22,234  
Limit on deductible amortisation / depreciation, Law 16/2012 
21,259  
27,477  
Other 
13,507  
9,113  
Offsetting of deferred assets and liabilities 
(75,247) 
(77,050) 
Total deferred tax assets 
44,307  
27,984  
Accelerated depreciation and amortisation 
492,235  
507,738  
Non-deductible assets  
14,070  
13,462  
IFRS 9 application adjustments 
8,834  
10,334  
Other  
16,363  
18,641  
Offsetting of deferred assets and liabilities 
(75,247) 
(77,050) 
Total deferred tax liabilities 
456,255  
473,125  
In the consolidated statement of financial position the Group has offset deferred tax assets and deferred tax 
liabilities arising from the Spanish tax group in an amount of Euros 75,247 thousand, as permitted by IAS 12 
(Euros 77,050 thousand in 2018).  
At 31 December 2019 the deferred tax assets and liabilities are expected to be recovered and settled as follows: 
 
Gross total More than 1 
year 
Less than 1 
year 
Adjustment for 
offsetting of 
assets and 
liabilities 
Net total 
Deferred tax assets 
119,554 
115,088 
4,466 
(75,247) 
44,307 
Deferred tax liabilities 
531,502 
509,919 
21,583 
(75,247) 
456,255 
The recovery/settlement of the Group's deferred tax assets/liabilities is dependent on certain assumptions, 
which could change. 
Deferred tax assets include reversals of tax prepaid in 2013 and 2014 as a result of applying the limitation on 
the tax deductibility of depreciation and amortisation charges stipulated in article 7 of Law 16/2012 of 27 
December 2012, which introduced several fiscal measures to consolidate public finances and boost economic 
activity, and as a result of the commencement, in 2015, of depreciation and amortisation for tax purposes of 
the net increase in value resulting from the revaluations applied to the balance sheet at 31 December 2012, 
pursuant to article 9 of the same Law. This item also comprises amounts relating to changes in value of cash 
flow hedges and long-term employee benefits. 
At 31 December 2019 the Group has unrecognised deferred tax assets for R&D&i expenditure deductions that 
are unused by the tax group headed by Hispasat, S.A., amounting to Euros 31,558 thousand. These assets were 
generated in 2011-2018 and are available until 2030-2037. 
Deferred tax liabilities essentially relate to the accelerated depreciation for tax purposes of certain fixed 
assets and the inclusion of the assets and liabilities of REDALTA and INALTA, the companies absorbed by REC 
in 2006. In 2019, deferred tax liabilities due to accelerated depreciation as provided for in the 11th additional 
provision of Royal Legislative Decree 4/2004, and the 34th transitional provision of Income Tax Law 27/2014, 
amounted to Euros 433,881 thousand (Euros 451,724 thousand in 2018).

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 71 of 87  
 
The notes to REC's annual accounts for 2006 contain disclosures on the merger by absorption of REDALTA and 
INALTA, as required by article 86 of Law 27/2014. The notes to the 2008 annual accounts include disclosures 
on REC's contribution to REE of the branch of activities encompassing the duties of the system operator, 
transmission network manager and transmission agent of the Spanish electricity system. 
The notes to the annual accounts of REC and REINTEL for 2015 also include the disclosures stipulated in article 
86 of Law 27/2014 regarding the spin-off of the telecommunications services business from REI to REINTEL, 
while the notes to the annual accounts of REC and REI for 2015 contain the disclosures regarding the non-
monetary contribution of shares in REN. 
In accordance with current legislation, taxes cannot be considered definitive until they have been inspected 
and agreed by the taxation authorities or before the inspection period has elapsed. 
Therefore, in general, Group companies in Spain have open to inspection by the taxation authorities all main 
applicable taxes since 2016, except income tax, which is open to inspection since 2015. However, this period 
may be different for Group companies that are subject to other tax legislation. 
In Spain the limited administrative proceedings undertaken were completed in 2018, giving rise to the initiation 
of certain tax proceedings affecting 2011 to 2016. The Group considers its conduct to have been lawful based 
on reasonable interpretations of the applicable legislation, and has therefore lodged the pertinent appeals, 
which at 31 December 2019 are being heard at economic-administrative level. No penalties were imposed as a 
result of the proceedings and no significant tax liabilities arose for the Group. 
On an international level, at the 2019 reporting date the tax proceedings entailing the review of income tax in 
Peru for 2009 to 2011 are underway. In 2019 the tax court handed down a judgment in favour of the Group, but 
at the reporting date the Group has yet to hear whether the ruling will be appealed by the Peruvian taxation 
authorities. The Group considers it reasonably probable that these appeals will be successful.  
As a result of the Hispasat Group acquisition, the Group has open tax proceedings in Brazil relating to ICMS 
(Brazilian tax on the circulation of goods and services), as well as other taxes, mainly of an indirect nature. 
These proceedings arise from inspection assessments, in respect of which the Group companies have lodged 
appeals. In addition, the Group has specific guarantees to cover them (see note 15). 
Due to the different possible interpretations of tax legislation, additional tax liabilities could arise as a result 
of future inspections, which cannot be objectively quantified at present. Nevertheless, any additional liabilities 
that could eventually arise in the event of inspection are not expected to significantly affect the Company’s 
future results. 
 Income and Expenses  
a)  Revenue 
Details of this item in 2019 and 2018, by geographical area, are as follows: 
 
Thousands of Euros 
2019 
2018 
Domestic market 
1,919,266 
1,900,684 
International market 
87,974 
47,856 
a) European Union 
20,050 
20,174 
a.1) Eurozone 
20,050 
20,174 
b) Other countries 
67,924 
27,682 
Total 
2,007,240 
1,948,540 
Domestic market essentially includes the regulated revenue from transmission and electricity system 
operation services in Spain, which is set by the Regulator at Euros 1,734,729 thousand (Euros 1,753,783

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 72 of 87  
 
thousand in 2018), as well as revenue from facilities that have entered into service and are not considered in 
the foregoing amount. This item also includes the revenue from telecommunications services rendered in 
Spain amounting to Euros 118,019 thousand (Euros 87,438 thousand at 31 December 2018). 
International market in 2019 and 2018 primarily includes revenue from reinsurance services, presented under 
European Union; and revenue from the rendering of transmission services in Peruvian and Chilean companies, 
and satellite telecommunications services in Brazil, presented under other countries. 
b) Other operating income 
At 31 December 2019 and 2018 other operating income mostly includes insurance payouts for accidents and 
breakdowns covered by the policies arranged and other non-trading income of the Group. 
c) Supplies and other operating expenses 
Details of these items in 2019 and 2018 are as follows: 
Thousands of Euros 
2019 
2018 
Supplies 
34,503 
37,725 
Other operating expenses 
317,649 
300,987 
Total 
352,152 
338,712 
Supplies and other operating expenses mainly comprise repair and maintenance costs incurred at facilities as 
well as IT, advisory, lease and other service costs. Other operating expenses include the amount accrued in 
respect of local taxes imposed on the use of the municipal public domain (Euros 8.1 million in 2019 and Euros 
9.3 million in 2019). 
d) Personnel expenses 
Details of this item in 2019 and 2018 are as follows: 
Thousands of Euros 
2019 
2018 
Salaries, wages and other remuneration 
123,016 
114,912 
Social security 
27,627 
25,081 
Contributions to pension funds and similar obligations 
2,201 
2,082 
Other items and employee benefits 
7,286 
9,774 
Total 
160,130 
151,848 
Salaries, wages and other remuneration include employee remuneration, termination benefits and the accrual 
of deferred remuneration. This item also includes the remuneration of the Company’s board of directors. 
The Group companies have capitalised personnel expenses (see notes 6 and 7) totalling Euros 40,150 thousand 
at 31 December 2019 (Euros 30,533 thousand at 31 December 2018). 
• Employees 
The average headcount of the Group in 2019 and 2018, distributed by professional category, is as follows: 
 
2019 
2018 
Management team 
137 
127 
Senior technicians and middle management 
568 
569 
Technicians 
641 
581 
Specialist and administrative staff 
511 
528 
Total 
1,857 
1,805

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
Page 73 of 87  
 
 
The distribution of the Group's employees at 31 December, by gender and category, is as follows: 
 
2019 
2018 
 
Male 
Female 
Total 
Male 
Female 
Total 
Management team 
101  
47  
148  
92  
36  
128  
Senior technicians and middle 
management 
399  
200  
599  
375  
192  
567  
Technicians 
616  
158  
774  
506  
92  
598  
Specialist and administrative staff 
408  
127  
535  
394  
112  
506  
Total 
1,524  
532  
2,056  
1,367  
432  
1,799  
The average number of employees with a disability rating of 33% or higher in 2019 and 2018, distributed by 
gender and category, is as follows: 
 
2019 
2018 
 
Male 
Female 
Total 
Male 
Female 
Total 
Management team 
-  
-  
-  
-  
-  
-  
Senior technicians and middle 
management 
3  
2  
5  
3  
2  
5  
Technicians 
11  
1  
12  
8  
-  
8  
Specialist and administrative staff 
1  
1  
2  
1  
1  
2  
Total 
15  
4  
19  
12  
3  
15  
At 31 December 2019 the Parent’s board of directors, which is not included in the employees of the Group, 
comprises 12 members (12 members in 2018), of which 7 are men and 5 are women (7 men and 5 women in 
2018). 
e) Finance income and costs 
Finance income mainly comprises the dividends received on the Group's 5% interest in REN, amounting to 
Euros 5,704 thousand (Euros 5,704 thousand in 2018).  
This item also includes Euros 3,433 thousand of finance income (Euros 2,214 thousand in 2018) on the 
investments in the EIGs (see notes 18 and 22) and Euros 1,439 thousand of finance income (Euros 2,550 
thousand in 2018) on the loans extended to TEN (see note 24), as well as income accrued on fixed-term 
deposits.  
Finance costs basically reflect those incurred on loans and borrowings, net of any amounts capitalised, as well 
as bonds and other marketable securities for an amount of Euros 153,670 thousand (see note 18). 
Capitalised borrowing costs (see notes 6 and 7) totalled Euros 7,742 thousand in 2019 (Euros 6,173 thousand in 
2018). 
 Transactions with Equity-accounted Investees and Related Parties 
 Balances and transactions with equity-accounted investees 
These balances and transactions reflect the TEN and Hisdesat joint ventures. All transactions have been 
carried out at market prices. The main transactions carried out by Group companies with TEN and Hisdesat in 
2019 and 2018 were as follows:

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Red Eléctrica Corporación and Subsidiaries 
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2019 
2018 
 
Balances 
Transactions 
Balances 
Transactions 
 
Receiva-
bles 
Payables 
Expenses 
Income 
Receiva-
bles 
Payables 
Expenses 
Income 
Transmisora Eléctrica 
del Norte, S.A. (TEN) 
25,321  
294  
(568) 
1439 
42,263  
47  
(495) 
2,550  
Hisdesat Servicios 
Estratégicos, S.A. 
-  
-  
-  
298  
-  
-  
-  
-  
Total  
25,321  
294  
(568) 
1,737  
42,263  
47  
(495) 
2,550  
 Transactions with related parties 
Related party transactions are carried out under normal market conditions. Details are as follows: 
 
2019 
Thousands of Euros 
Significant 
shareholders 
Directors and man-
agement 
Group employees, com-
panies or entities 
Other 
related 
parties 
Total 
Expenses and income: 
 
 
 
 
 
Leases 
- 
- 
- 
83 
83 
Other expenses 
 
 
- 
485 
485 
Expenses 
- 
- 
- 
568 
568 
Services rendered 
- 
- 
- 
374 
374 
Finance income 
- 
- 
- 
1,364 
1,364 
Income 
- 
- 
- 
1,738 
1,738 
Other transactions: 
 
 
 
 
 
Financing agreements, loans and 
capital contributions (lender) 
- 
123 
- 
24,677 
24,800 
Other transactions 
- 
123 
- 
24,677 
24,800 
 
 
2018 
Thousands of Euros 
Significant 
shareholders 
Directors and man-
agement 
Group employees, com-
panies or entities 
Other 
related 
parties 
Total 
Expenses and income: 
 
 
 
 
 
Leases 
- 
- 
- 
47 
47 
Other expenses 
 
 
- 
448 
448 
Expenses 
- 
- 
- 
495 
495 
Finance income 
- 
- 
- 
2,550 
2,550 
Income 
- 
- 
- 
2,550 
2,550 
Other transactions: 
 
 
 
 
 
Financing agreements, loans and 
capital contributions (lender) 
- 
148 
- 
42,263 
42,411 
Other transactions 
- 
148 
- 
42,263 
42,411

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Transactions with other related parties comprise those with TEN and Hisdesat described in section a) of this 
note. The balance under financing agreements, loans and capital contributions (lender) at 31 December 2019 
and 2018 (see note 18) reflects the amount receivable in respect of the credit facility extended to TEN. The 
maximum amount drawn down on this facility in 2019 was Euros 25,236 thousand (maximum drawdown of 
Euros 41,724 thousand in 2018). 
See note 26 for details of transactions with directors and management. 
 Remuneration of the Board of Directors 
At the proposal of the board of directors and as required by the articles of association, the remuneration of 
the board of directors for 2019, the annual remuneration report and the remuneration policy for directors for 
2019, 2020 and 2021 were approved by the shareholders at their general meeting on 22 March 2019. 
The approved remuneration of the board of directors for 2019, including the remuneration of the board 
members, the chairman and the CEO, was unchanged vis-à-vis 2018. 
The chairman receives fixed annual remuneration in respect of the non-executive chairman duties associated 
with this position, in addition to remuneration for being a member of the board of directors. The remuneration 
scheme for this position consists solely of fixed amounts, with no annual or multi-year variable remuneration 
and no termination benefit. In 2019 both remuneration components are under the same terms as in 2018. 
At its meeting held on 31 July 2018, the board of directors adopted, among others, the following agreements: 
• To accept Mr. José Folgado Blanco’s resignation from the position of director and non-executive chairman 
of the board of directors of the Company. 
• To appoint Mr. Jordi Sevilla Segura as a director of the Company, in the category of “other external 
directors”, until the next general shareholders’ meeting, and to also appoint him non-executive chairman 
of the board of directors of the Company. 
Subsequently, at their general meeting held on 22 March 2019, the shareholders ratified the appointment of 
Mr. Jordi Sevilla Segura as a director of the Company. 
After Mr. José Folgado Blanco ceased to perform executive duties in 2016, the labour contract approved in 
2012 was deemed to have been terminated. At that point, the chairman had accrued an indemnity 
corresponding to one year's remuneration as executive chairman, as stipulated in the contract. This indemnity, 
amounting to Euros 718 thousand, was settled when he ceased to be a director of the Company. 
The remuneration allocated to the CEO includes the fixed and variable annual and multi-year components 
corresponding to executive duties and the fixed remuneration for being a member of the board of directors. 
Employee benefits form part of the remuneration for this position. A portion of the annual variable 
remuneration is paid through the delivery of Company shares. 
Moreover, the CEO has been included in a defined contribution benefit scheme. This scheme covers the 
retirement, death and permanent disability contingencies. Red Eléctrica's obligation is limited to an annual 
contribution equal to 20% of the CEO's fixed annual remuneration. 
The annual variable remuneration of the CEO is set by the Appointments and Remuneration Committee of the 
Parent at the start of each year, using predetermined quantifiable and objective criteria. The targets are in 
line with the strategies and actions established in the Company's Strategic Plan and the degree of fulfilment 
is assessed by the Committee. 
Pursuant to the remunerations policy and in line with standard market practices, the CEO’s contract provides 
for a termination benefit equal to one year's salary in the event that labour relations are terminated due to 
dismissal or changes of control.  
As regards the CEO, at its meeting held on 27 May 2019, the board of directors adopted, among others, the 
following agreements:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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• To dismiss Mr. Juan Francisco Lasala Bernad as CEO and to accept his resignation from the position of 
executive director of the Company. 
• To appoint Mr. Roberto García Merino as executive director and, subsequently, as CEO of the Company, until 
the following general shareholders’ meeting. 
In line with market practices in such cases, as a result of the appointment of the new CEO, the existing 
employment contract has been suspended. Should the employment contract be terminated, he would accrue 
the remuneration due at the date of suspension as an indemnity. For this purpose, his tenure at Red Eléctrica 
de España, S.A.U. up to the date he was appointed CEO (15 years), plus the period in which he rendered services 
– if any – following his termination as CEO, would be taken into consideration, in accordance with employment 
legislation in force. Both the economic regime and the suspension of the employment relationship of the new 
CEO are in line with those applied to the previous CEO. 
In line with standard market practices, Mr. Juan Francisco Lasala Bernad was entitled to a settlement in 
respect of his labour relations and an indemnity as CEO equal to one year’s salary in the event that labour 
relations were terminated due to dismissal or changes of control. The amount associated with his termination 
as CEO totalled Euros 1,671 thousand, including the indemnity paid, which was settled when his relationship 
with the Company was terminated. 
The remuneration of the board of directors includes fixed annual remuneration, allowances for attending 
board meetings, remuneration for work on the board of directors' committees and specific annual 
remuneration both for the chairs of the committees and the coordinating independent director. The 
components and amounts of this remuneration have not changed in 2019. 
Reasonable and duly supported expenses incurred as a result of their attendance at meetings and other tasks 
directly related to carrying out their duties, such as travel expenses, accommodation, meals and any other 
such costs that may be incurred, will also be paid or reimbursed to the directors. 
The total amounts accrued by the members of the Parent's board of directors in 2019 and 2018 are as follows: 
Thousands of Euros 
2019 
2018 
Total remuneration of the board of directors 
2,505 
2,485 
Directors' remuneration in respect of executive duties (1)  
784 
838 
Total  
3,289 
3,323 
 
(1) This includes annual fixed and variable remuneration accrued during the year and does not include the 
indemnity amounting to Euros 818 thousand for the termination of the CEO. 
The rise in total remuneration of the board of directors compared with the prior year is because the Chair of 
the Sustainability Committee only received remuneration in 2018 from November, when the Committee was 
set up, until year end, whereas in 2019 the remuneration is for the full year. 
During certain months in 2018 the Committees had not named all of their members, whereas in 2019 all the 
Committees had appointed all of their members. 
The year-on-year decrease in directors' remuneration in respect of executive duties is because the amount 
accrued for the position of executive director was lower in 2019 than in 2018. 
A breakdown of remuneration by type of director at 31 December 2019 and 2018 is as follows:

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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Thousands of Euros 
2019 
2018 
Type of director: 
 
Executive directors  
931 
986 
External proprietary directors  
525 
519 
External independent directors  
1,287 
1,272 
Other external directors 
546 
546 
Total remuneration 
3,289 
3,323 
 
The remuneration accrued by individual members of the Company's board of directors in 2019 and 2018, by 
components and director, is as follows: 
 
 
Thousands of Euros 
Fixed 
remuneration  
Variable 
remuneration  
Allowances 
for 
attending 
board 
meetings  
Committee 
work 
Chair of 
committee/board 
and coordinating 
independent 
director 
Other 
remuneration 
(7) 
Total 2019 
Total 2018 
Mr. Jordi Sevilla Segura  
530 
- 
16 
- 
- 
- 
546 
228 
Mr. Roberto García Merino (1) 
287 
157 
10 
- 
- 
77 
531 
- 
Mr. Juan Lasala Bernad (2) 
215 
122 
6 
- 
- 
57 
400 
986 
Ms. Carmen Gómez de Barreda Tous de Monsalve  
131 
- 
16 
28 
30 
- 
205 
192 
Ms. María José García Beato 
131 
- 
16 
28 
- 
- 
175 
175 
Ms. Socorro Fernández Larrea 
131 
- 
16 
28 
12 
- 
187 
175 
Mr. Antonio Gómez Ciria 
131 
- 
16 
28 
15 
- 
190 
190 
Mr. José Luis Feito Higueruela (3) 
29 
- 
3 
7 
4 
- 
43 
190 
Mr. Arsenio Fernández de Mesa Díaz del Río  
131 
- 
16 
28 
- 
- 
175 
175 
Mr. Alberto Carbajo Josa 
131 
- 
16 
28 
- 
- 
175 
175 
Ms. Mercedes Real Rodrigálvarez (4) 
131 
- 
16 
28 
- 
- 
175 
175 
Ms. María Teresa Costa Campi 
131 
- 
16 
28 
- 
- 
175 
43 
Mr. Antonio Gómez Expósito 
131 
- 
16 
28 
- 
- 
175 
43 
Mr. José Juan Ruiz Gómez (5) 
102 
- 
14 
21 
- 
- 
137 
- 
Other board members (6) 
- 
- 
- 
- 
- 
- 
- 
576 
Total remuneration accrued  
2,342 
279 
193 
280 
61 
134 
3,289 
3,323 
 
(1) New director since the board meeting held on 27 May 2019. 
(2) Stepped down from the board of directors at the board meeting held on 27 May 2019. 
(3) Stepped down from the board of directors at the board meeting held on 22 March 2019. 
(4) Amounts received by Sociedad Estatal de Participaciones Industriales (SEPI). 
(5) New director since the board meeting held on 22 March 2019. 
(6) Board members in 2018 who have stepped down from the board. 
(7) Includes the employee benefits that form part of the CEO's remuneration. 
 
The above amounts do not include the indemnity associated with the termination of the CEO, amounting to 
Euros 818 thousand, in 2019 or the indemnity paid to the former chairman, totalling Euros 718 thousand, in 2018. 
 
As a result of the work of the Parent's Appointments and Remuneration Committee on various long-term 
incentive plans to be used as a management tool and mechanism for fulfilment of the new Strategic Plan, on 
17 February 2015 the Committee endorsed the establishment of a directors' remuneration scheme for 2014-
2019, which was approved by the Company’s board of directors on 24 February 2015. 
At the 2019 reporting date this scheme only applies to the CEO.

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Fulfilment of this remuneration scheme, which forms part of the remuneration policy, will be based on 
achieving the targets set out in the Group's Strategic Plan for this period and on meeting certain conditions. A 
minimum limit of 70% and maximum limit of 110% is established for evaluation of this scheme. Depending on 
the targets met, the total amount for the six-year period with 100% fulfilment would be 1.8 times the annual 
fixed remuneration. As in the case of annual targets, this scheme takes into account predetermined 
quantifiable and objective criteria, in line with the medium- and long-term outlook of the Group's Strategic 
Plan. These targets are set and assessed by the Appointments and Remuneration Committee. The 
consolidated statement of financial position includes a provision for accrual of this plan for 2019. 
At 31 December 2019 and 2018 no loans or advances have been granted to the members of the board of 
directors, nor have any guarantees been extended on their behalf. The Group has no pension or life insurance 
obligations with the members of the board of directors at those dates, other than those previously mentioned, 
nor have any loans or advances been extended to board members. 
At 31 December 2019 and 2018 the Group has taken out public liability insurance to cover claims from third 
parties in respect of possible damage and loss caused by actions or omissions in performing duties as Group 
directors. These policies cover the Group's directors and senior management and the annual premiums 
amount to Euros 142 thousand, inclusive of tax, in 2019 (Euros 142 thousand at 31 December 2018). These 
premiums are calculated based on the nature of the Group's activity and its financial indicators, thus they 
cannot be broken down individually or allocated to directors and senior management separately. 
In 2019 and 2018 the members of the board of directors did not engage in transactions with the Company or 
Group companies, either directly or through intermediaries, other than ordinary operations under market 
conditions.  
 Remuneration of Senior Management 
In 2019 total remuneration accrued by senior management personnel amounted to Euros 664 thousand (Euros 
657 thousand in 2018) and is recognised as personnel expenses in the consolidated income statement. These 
amounts include the accrual of variable annual remuneration, on the assumption that the objectives set each 
year will be met. After the fulfilment of these objectives has been assessed, the variable remuneration, 
adjusted to the actual fulfilment rate, is paid in the first few months of the following year. 
The senior management personnel who have rendered services for the Group during 2019 and 2018 are as 
follows: 
Name 
Position 
Eva Pagán Díaz 
General Manager of Transmission 
Miguel Duvisón García 
General Manager of Operations 
 
Euros 14 thousand of the total remuneration accrued by these senior managers consisted of contributions to 
life insurance and pension plans (Euros 14 thousand in 2018). 
At 31 December 2019 loans have been granted to these senior managers that have an outstanding balance of 
Euros 123 thousand. They fall due in 2024 and have the same conditions as those applied to loans granted to 
personnel under the collective bargaining agreement. The equivalent interest rate applicable to these loans is 
0.65%. No advances have been extended to these senior managers at 31 December 2019 and 2018. 
As a result of the work of the Parent's Appointments and Remuneration Committee on various long-term 
incentive plans to be used as a management tool and mechanism for fulfilment of the new Strategic Plan, on 
17 February 2015 the Committee endorsed the establishment of a directors' remuneration scheme for 2014-
2019, which was approved by the Company’s board of directors on 24 February 2015. 
At the 2019 reporting date this scheme applies to senior management personnel. 
Fulfilment of this remuneration scheme will be based on achieving the targets set out in the Group's Strategic 
Plan for this period and on meeting certain conditions. A minimum limit of 70% and maximum limit of 110% is

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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established for evaluation of this scheme. Depending on the targets met, the total amount for the six-year 
period with 100% fulfilment would be 1.8 times the annual fixed remuneration. As in the case of annual targets, 
this scheme takes into account predetermined quantifiable and objective criteria, in line with the medium- 
and long-term outlook of the Group's Strategic Plan. These targets are set and assessed by the Appointments 
and Remuneration Committee. The consolidated statement of financial position includes a provision for 
accrual of this plan for 2019. 
The contracts in place with serving senior management personnel do not include guarantee or golden 
parachute clauses, in the event of dismissal. In the event the employment relationship were terminated, the 
indemnity to which senior management personnel would be entitled would be calculated in accordance with 
applicable legislation. The contracts for these executives have been approved by the Appointments and 
Remuneration Committee and the board of directors has received notice thereof. 
Senior management personnel who rendered services in the Group as at 31 December 2019 are included in the 
Structural Management Plan implemented by the Company in 2015. 
At 31 December 2019 and 2018 the Group has taken out public liability insurance to cover claims from third 
parties in respect of possible damage and loss caused by actions or omissions in performing duties as senior 
management of the Group. These policies cover all the Group's directors and senior management and the 
annual premiums amount to Euros 142 thousand, inclusive of tax, in 2019 (Euros 142 thousand in 2018). These 
premiums are calculated based on the nature of the Group's activity and its financial indicators, thus they 
cannot be broken down individually or allocated to directors and senior management separately. 
 Segment Reporting 
The Red Eléctrica Group segments its business activities based on their nature, reflecting the main branches 
of activity used by the Group in its management and decision-making. 
At 31 December 2019, the Group’s operating segments and their main products, services and operations are as 
follows: 
• Management and operation of domestic electricity infrastructure:  
This segment comprises the Group’s principal activity, as sole transmission agent and system operator 
for the Spanish electricity system (TSO). Its mission is to guarantee the security and continuity of the 
electricity supply at all times and manage high-voltage electricity transmission.  
The Group engages in the high-voltage transmission of electricity, through REE. To this end, it manages 
the transmission network electricity facilities that connect the generation power plants to the consumer 
distribution points. As transmission network manager, REE is responsible for the development and ex-
pansion of the network, its maintenance, managing the transfer of electricity between external systems 
and the mainland, and guaranteeing third-party access to the transmission network under equal condi-
tions.  
In addition, REE operates the mainland Spanish electricity system and the non-mainland systems in the 
Canary Islands, Balearic Islands, Ceuta and Melilla, guaranteeing the security and continuity of the elec-
tricity supply at all times. Operation of the system encompasses the necessary activities to guarantee 
such security and continuity, as well as proper coordination between the generation system and trans-
mission network, ensuring that the energy produced by generators is transmitted to the distribution net-
works with the requisite quality under applicable legislation. 
• Management and operation of international electricity infrastructure:  
This segment comprises activities related to international business development as a natural form of 
growth, mainly focused on the construction and operation of electricity transmission networks outside 
Spain; at 31 December 2019, in Peru and Chile specifically.

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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• Telecommunications (satellites and fibre optics): 
The telecommunications segment comprises the operation of satellite infrastructure in Spain, Portugal 
and South America, as well as the lease in Spain of a broad dark fibre backbone network, and technical 
sites and spaces for storing customers’ telecommunications equipment. The main services rendered are 
the lease and concession of fibre optics, the lease of sites, maintenance of telecommunications and other 
facilities, and integrated telecommunications infrastructure solutions (towers, fibre optics, technical 
spaces and electricity supply) for telecom operators to render mobile telephone voice and data services 
on high-speed train (AVE) lines, as well as the provision of satellite capacity and telecommunications ser-
vices in the wholesale satellite internet services market.   
 
The Group also carries out reinsurance activities and fosters innovation in electricity and telecommunications. 
These activities do not meet the quantitative thresholds to be presented separately. 
Inter-segment sales prices are established based on the normal commercial terms and conditions with unre-
lated third parties. 
The Hispasat Group is only included in the telecommunications segment from October 2019 onwards, the date 
on which control of this company was assumed. The key indicators of the operating segments identified are 
as follows:  
 
Business segments at 31 December 2019 
Management and operation 
of electricity infrastructure  
Telecommunications 
(fibre optics and 
satellites) 
Other, 
corporate and 
adjustments 
Total 
Thousands of Euros 
Domestic 
International 
Total 
Revenue 
1,806,997 
51,640 
175,417 
(26,814) 
2,007,240 
External customers 
1,799,904 
51,310 
134,548 
21,478 
2,007,240 
Inter-segment revenues 
7,093 
331 
40,869 
(48,292) 
- 
Investments in equity-accounted 
associates (similar activity) 
- 
7,606 
- 
- 
7,606 
Depreciation and amortisation 
(463,670) 
(11,551) 
(51,849) 
1,542 
(525,529) 
Results from operating activities 
967,974 
24,744 
81,097 
7,540 
1,081,355 
Interest income 
97 
8,081 
1,215 
3,424 
12,817 
Interest expense 
(119,701) 
(23,399) 
(10,162) 
7,334 
(145,927) 
Investments in equity-accounted 
associates  
- 
- 
1,369 
- 
1,369 
Income tax 
(211,453) 
(885) 
(13,297) 
(4,600) 
(230,234) 
Profit of the Parent after tax 
636,921 
8,101 
59,393 
13,624 
718,040 
 
 
Segment assets 
9,679,797 
895,299 
2,000,570 
86,294 
12,661,960 
Equity-accounted investees 
- 
199,026 
60,568 
- 
259,594 
Segment liabilities 
7,637,115 
685,965 
1,110,407 
(385,961) 
9,047,526

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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Business segments at 31 December 2018 
Management and operation 
of electricity infrastructure  
Telecommunications 
(fibre optics) 
Other, corporate 
and adjustments 
Total 
Thousands of Euros 
Domestic 
International 
Total 
Revenue 
1,818,828 
28,025 
124,432 
(22,745) 
1,948,540 
External customers 
1,812,390 
27,698 
87,438 
21,014 
1,948,540 
Inter-segment revenues 
6,438 
327 
36,994 
(43,758) 
- 
Investments in equity-accounted 
associates (similar activity) 
- 
6,966 
- 
- 
6,966 
Depreciation and amortisation 
(456,839) 
(6,541) 
(22,437) 
5,064 
(480,753) 
Results from operating activities 
974,283 
15,664 
68,239 
11,607 
1,069,793 
Interest income 
121 
8,325 
- 
2,225 
10,670 
Interest expense 
(131,035) 
(15,531) 
(6,840) 
9,341 
(144,063) 
Income tax 
(210,334) 
(375) 
(14,819) 
(6,237) 
(231,763) 
Profit of the Parent after tax 
632,900 
8,196 
46,581 
16,881 
704,558 
 
 
Segment assets 
9,577,482 
667,345 
516,490 
500,764 
11,262,080 
Equity-accounted investees 
- 
198,377 
- 
- 
198,377 
Segment liabilities 
7,600,481 
496,267 
334,469 
(530,503) 
7,900,714 
 
Details of revenue and non-current assets, by geographical area, are as follows: 
 
Thousands of Euros 
Revenue  
2019 
2018 
Spain 
1,919,266 
1,900,684 
Other 
87,974 
47,856 
Total 
2,007,240 
1,948,540 
 
Thousands of Euros 
Fixed assets (*) 
2019 
2018 
Spain 
9,948,276 
8,678,669 
Other 
751,398 
475,253 
Total 
10,699,673 
9,153,923 
(*) This excludes non-current investments, deferred tax assets, and non-current trade and other receivables. 
 Interests in Joint Arrangements 
The Group (through REE) and Réseau de Transport d’Électricité (RTE), the French transmission system 
operator, each hold a 50% investment in the INELFE joint arrangement, which has its registered office in Paris. 
Its statutory activity is the study and execution of interconnections between Spain and France that will 
increase the electricity exchange capacity between the two countries. Decisions are taken with the 
unanimous consent of the parties. RTE and REE both have rights to the assets and obligations for the liabilities 
of INELFE. The joint arrangement has therefore been classified as a joint operation. The Group recognises the 
assets, including its interest in the jointly controlled assets, and the liabilities, including its share of the 
liabilities that have been incurred jointly in INELFE, in its consolidated annual accounts (see note 2 d).

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
Red Eléctrica Corporación and Subsidiaries 
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The Group has an interest in a further joint arrangement through Red Eléctrica Chile S.P.A., which holds a 50% 
stake in the Chilean company TEN, alongside Engie Energía Chile, S.A. (E.C.L. S.A.). The Group has classified 
this joint arrangement as a joint venture, inasmuch as the parties have rights to the net assets (see note 10). 
Due to the existence of contractual arrangements under which decisions on relevant activities require the 
unanimous consent of both parties, the Group has joint control of several “UTEs” (Unión Temporal de Empresas 
– a form of temporary business association). The Group has classified the investments as joint operations 
because the parties have rights to the assets and obligations for the liabilities. The UTE has been formed to 
provide dark fibre services, with an availability guarantee, between the Balearic Islands and the Mediterranean 
Coast of the Spanish mainland. 
 Guarantees and Other Commitments with Third Parties and Other Contingent 
Assets and Liabilities 
At 31 December 2019 and 2018 the Company, together with REE, has jointly and severally guaranteed the private 
issue in the United States of bonds totalling US Dollars 430 million, and the Eurobonds programme of REF for 
an amount of up to Euros 5,000 million at 31 December 2019 (Euros 4,500 million at 31 December 2018). 
Furthermore, at 31 December 2019 and 2018 the Company and REE have jointly and severally guaranteed the 
promissory notes issued under the Euro Commercial Paper Programme (ECP Programme) by REF for an 
amount of up to Euros 1,000 million. 
On 19 February 2015, REDESUR, TESUR and Scotia Sociedad Titulizadora S.A. created a securitisation trust to 
hold the REDESUR-TESUR trust assets, in order to back the obligations arising from the bond issues amounting 
to US Dollars 91 million at 31 December 2019. 
At 31 December 2019 the Group has extended bank guarantees to third parties in relation to its normal business 
operations, amounting to Euros 233,830 thousand (Euros 194,985 thousand in 2018). 
On 22 November 2019, Red Eléctrica Internacional and the Colombian company Grupo Energía Bogotá S.A. ESP 
(GEB) reached an agreement to jointly acquire, on a 50/50 basis, 100% of the ordinary shares of Argo Energía 
(Argo Energía Empreendimentos e Participacoes, S.A.), which currently belongs to funds managed by Patria 
Investments and to Sommerville Investments B.V., an indirect subsidiary of Temasek Holdings (Private) 
Limited. Argo Energía holds three 30-year electricity transmission concessions in Brazil, amounting to 1,460 
km of 500 kV and 230 kV lines and 11 substations, of which 1,150 km of lines and five substations have been 
operating since October 2019. The two concessions, which form part of the Brazilian national transmission 
system, and two of which are currently under construction, will generate revenues of around Euros 190 million 
in 2023 once they come into service. For the contract to come into effect, various permits must be obtained 
from regulators, including ANEEL and the Brazilian competition authority CADE. The final purchase price has 
been set at BRL 1,775 million for 50% of the shares. 
At 31 December 2019 the Company has signed an agreement for the subscription of shares in a venture capital 
company called Adara Ventures III S.C.A., SICAR, committing to an amount of Euros 5 million, which will be paid 
at the behest of that company when opportunities arise in the market to invest in companies in the innovation 
and technology sectors. 
 Environmental Information  
In 2019 Group companies incurred ordinary expenses of Euros 26,149 thousand in protecting and improving 
the environment (Euros 23,958 thousand in 2018), essentially due to the implementation of environmental 
initiatives aimed at protecting biodiversity, fire prevention, landscape integration, climate change, and 
prevention of pollution.  
In 2019 a total of Euros 3,217 thousand (Euros 1,426 thousand in 2018) was spent on environmental issues 
associated with investment projects (including environmental impact studies, environmental oversight of 
work, and the adoption of preventive, corrective and accompanying measures).

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Red Eléctrica Corporación and Subsidiaries 
Page 83 of 87  
 
The Group companies are not involved in any litigation relating to environmental protection or improvement 
that could give rise to significant contingencies. The Group companies received no significant environment-
related grants in 2019 or 2018. 
 Other Information 
KPMG is the main auditor of the annual accounts of the Group companies, except INELFE, which is audited by 
PricewaterhouseCoopers (PwC). 
The total fees accrued for the audit services rendered to the Group companies in 2019 were Euros 562.9 
thousand (Euros 315.6 thousand in 2018).  
Details of the contractual fees for services provided to the Red Eléctrica Group by the audit firm KPMG 
Auditores, S.L. in the years ended 31 December 2019 and 2018 are as follows: 
Thousands of Euros 
2019 
2018 
Audit services 
319.5 
189.0 
Other audit-related services 
100.4 
75.0 
Total 
419.9 
264.0 
The amounts detailed in the above table include the total fees for services rendered in 2019 and 2018, 
irrespective of the date of invoice. 
Audit services include the limited review of the Group’s interim financial statements. Other audit-related 
services essentially include assurance services relating to the issuance of comfort letters, the reasonable 
assurance audit report on the effectiveness of the Group’s ICOFR under ISAE 3000, and the agreed-upon 
procedures performed for the Group company REINTEL. 
Details of the contractual fees for services provided to the Red Eléctrica Group by other entities affiliated with 
KPMG in the years ended 31 December 2019 and 2018, both in Spain and abroad, are as follows: 
Thousands of Euros 
2019 
2018 
Audit services 
238.5 
142.7 
Other services 
40.0 
65.0 
Total 
278.5 
207.7 
 
Details of the contractual fees for services provided to the Group by PwC in the years ended 31 December 2019 
and 2018 are as follows: 
Thousands of Euros 
2019 
2018 
Audit services 
4.9 
4.8 
Total 
4.9 
4.8 
In addition, the equity-accounted investees HISDESAT and TEN were audited by KPMG and EY, respectively (in 
2018 TEN was audited by Deloitte). 
 Earnings per Share 
Details of earnings per share in 2019 and 2018 are as follows:

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Red Eléctrica Corporación and Subsidiaries 
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2019 
2018 
Net profit (thousands of Euros) 
718,040 
704,558 
Number of shares 
541,080,000 
541,080,000 
Average number of own shares 
1,558,846 
2,189,151 
Basic earnings per share (Euros) 
1.33 
1.31 
Diluted earnings per share (Euros) 
1.33 
1.31 
At 31 December 2019 and 2018 the Group has not conducted any operations that would result in any difference 
between basic earnings per share and diluted earnings per share. 
 Share-based Payments 
Details of share-based payments for management and employees at 31 December 2019 and 2018 are as follows: 
 
 
2019 
2018 
 
Number of 
shares 
Average 
price 
(Euros) 
Amount in 
thousands 
of Euros 
Number of 
shares 
Average 
price 
(Euros) 
Amount in 
thousands 
of Euros 
Senior management personnel 
1,390 
17.255  
24 
1,238 
19.370  
24 
Employees 
240,829 
17.255  
4,156 
191,317 
19.370  
3,706 
Total 
242,219 
17.255  
4,179 
192,555 
19.370  
3,730 
These shares have been valued at the listed price on the delivery date. All shares delivered were approved by 
the Parent's shareholders at the general meeting, and the related costs incurred have been recognised under 
personnel expenses in the consolidated income statement.  
 Events after 31 December 2019 
On 24 January the Company, through its subsidiary Red Eléctrica Financiaciones, S.A.U., issued bonds, 
guaranteed by Red Eléctrica Corporación, S.A. and Red Eléctrica de España, S.A.U., amounting to Euros 700 
million and with a maturity of 8.5 years. The bonds pay an annual coupon of 0.375% and their issue price is 
98.963%, representing a return of 0.500%. The funds obtained with this bond will be used to finance and/or 
refinance Eligible Projects within Red Eléctrica de España, S.A.U.’s recently announced Green Financing 
Framework. 
On 28 January Mr. Jordi Sevilla Segura stepped down as chairman of the Parent and, as a result, chairman of 
the board of directors, having been appointed as such by the board on 31 July 2018.

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Red Eléctrica Corporación and Subsidiaries 
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Appendix I: Details of equity investments at 31 December 2019 and 2018 
Red Eléctrica Group  
Details of equity investments at 31 December 2019 and 2018 
 
- Company 
 
 
 
 
- Registered office 
2019 
2018 
- Principal activity 
Percentage own-
ership (1) 
Percentage own-
ership (1) 
 
Direct 
Indirect 
Direct 
Indirect 
Red Eléctrica Corporación, S.A., Parent, incorporated in 1985. 
 
 
 
 
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 
 
 
 
 
- Management of the business Group; rendering of assistance or support services to investees and operation of the property owned by the Company. 
A) Fully consolidated subsidiaries 
 
 
 
 
Red Eléctrica de España, S.A.U. (REE) 
 
 
 
 
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 
100% 
- 
100% 
- 
- Transmission, operation of the Spanish electricity system and management of the transmission 
network. 
 
 
 
 
Red Eléctrica Internacional, S.A.U. (REI) 
 
 
 
 
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 
100% 
- 
100% 
- 
- Acquisition and holding of international equity investments. Rendering of advisory, engineering 
and construction services. - Performance of electricity activities outside the Spanish electricity 
system. 
 
 
 
 
Red Eléctrica Infraestructuras de Telecomunicación, S.A.U. (REINTEL) 
 
 
 
 
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 
100% 
- 
100% 
- 
- Rendering of advisory, engineering, construction and telecommunications services. 
 
 
 
 
Red Eléctrica Infraestructuras en Canarias, S.A.U (REINCAN) 
 
 
 
 
- Calle Juan de Quesada, 9. Las Palmas de Gran Canaria. (Spain). 
100% 
- 
100% 
- 
- Construction of energy storage facilities in non-mainland and isolated systems. 
 
 
 
 
Red Eléctrica de España Finance, B.V. (RBV) 
 
 
 
 
- Hoogoorddreef 15. Amsterdam (Netherlands). 
100% 
- 
100% 
- 
- Financing activities. Incorporated in 2003 in the Netherlands to issue debt to finance the Red 
Eléctrica Group.  
 
 
 
 
Red Eléctrica Financiaciones, S.A.U. (REF) 
 
 
 
 
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 
100% 
- 
100% 
- 
- Financing activities. 
 
 
 
 
Red Eléctrica Sistemas de Telecomunicaciones, S.A.U. (RESTEL) 
 
 
 
 
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 
100% 
- 
100% 
- 
- Acquisition, holding, management and administration of Spanish and foreign equity securities. 
 
 
 
 
Red Eléctrica y de Telecomunicaciones, Innovación y Tecnología, S.A.U. (RETIT) 
 
 
 
 
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 
100% 
- 
- 
- 
- Activities geared towards driving and accelerating technological innovation. 
 
 
 
 
Redcor Reaseguros, S.A (REDCOR) 
 
 
 
 
- 26, Rue Louvigny. (Luxembourg). 
 
 
 
 
- Reinsurance activities.  - Incorporated in 2010 in Luxembourg in order to reinsure the risks of the 
Group companies, thereby guaranteeing better access to international reinsurance markets.  
100% 
- 
100% 
- 
Red Eléctrica Andina, S.A.C. (REA) 
 
 
 
 
-Av. Javier Prado Este Of. 1001 Urb. Jardín San Isidro. Lima (Peru) 
- 
100%(a) 
- 
100%(a) 
- Rendering of line and substation maintenance services.

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Red Eléctrica Corporación and Subsidiaries 
Page 86 of 87  
 
 
- Company 
 
 
 
 
- Registered office 
2019 
2018 
- Principal activity 
Percentage 
ownership (1) 
Percentage own-
ership (1) 
 
Direct 
Indirect 
Direct 
Indirect 
Red Eléctrica del Sur, S.A. (REDESUR) 
 
 
 
 
-Av. Javier Prado Este Of. 1001 Urb. Jardín San Isidro. Lima (Peru) 
- 
100%(a) 
- 
100%(a) 
- Electricity transmission and operation and maintenance of electricity transmission networks. 
 
 
 
 
Transmisora Eléctrica del Sur , S.A.C. (TESUR) 
 
 
 
 
-Av. Javier Prado Este Of. 1001 Urb. Jardín San Isidro. Lima (Peru) 
- 
100%(c) 
- 
100%(c) 
- Electricity transmission and operation and maintenance of electricity transmission networks. 
 
 
 
 
Transmisora Eléctrica del Sur 2 , S.A.C. (TESUR 2) 
 
 
 
 
-Av. Javier Prado Este Of. 1001 Urb. Jardín San Isidro. Lima (Peru) 
- 
100%(c) 
- 
100%(c) 
- Electricity transmission and operation and maintenance of electricity transmission networks. 
 
 
 
 
Transmisora Eléctrica del Sur 3, S.A.C. (TESUR 3) 
 
 
 
 
-Av. Javier Prado Este Of. 1001 Urb. Jardín San Isidro. Lima (Peru) 
- 
100%(c) 
- 
100%(c) 
- Electricity transmission and operation and maintenance of electricity transmission networks. 
 
 
 
 
Transmisora Eléctrica del Sur 4, S.A.C. (TESUR 4) 
 
 
 
 
-Av. Javier Prado Este Of. 1001 Urb. Jardín San Isidro. Lima (Peru) 
- 
100%(j) 
- 
100%(c) 
- Electricity transmission and operation and maintenance of electricity transmission networks. 
 
 
 
 
Red Eléctrica del Norte Perú, S.A.C. (REDELNOR) 
 
 
 
 
-Av. Javier Prado Este Of. 1001 Urb. Jardín San Isidro. Lima (Peru) 
- 
100%(a) 
- 
- 
- Electricity transmission and operation and maintenance of electricity transmission networks. 
 
 
 
 
Concesionaria Línea de Transmisión CCNCM, S.A.C. (CCNCM) 
 
 
 
 
-Av. Javier Prado Este Of. 1001 Urb. Jardín San Isidro. Lima (Peru) 
- 
100%(d) 
- 
- 
- Electricity transmission and operation and maintenance of electricity transmission networks. 
 
 
 
 
Red Eléctrica Chile S.P.A. (RECH) 
 
 
 
 
- Avenida El Golf nº 40, piso 20. Comuna de Las Condes, Santiago (Chile) 
- 
100%(a) 
- 
100%(a) 
- Acquisition, holding, management and administration of securities. 
 
 
 
 
Red Eléctrica del Norte S.A. (REDENOR) 
 
 
 
 
- Avenida El Golf nº 40, piso 20. Comuna de Las Condes, Santiago (Chile) 
- 
69.9%(e) 
- 
69.9%(e) 
- Electricity transmission and operation and maintenance of electricity transmission networks. 
 
 
 
 
Red Eléctrica del Norte 2, S.A. (REDENOR 2) 
 
 
 
 
- Avenida El Golf nº 40, piso 20. Comuna de Las Condes, Santiago (Chile) 
- 
100%(e) 
- 
100%(e) 
- Electricity transmission and operation and maintenance of electricity transmission networks. 
 
 
 
 
Hispasat, S.A. 
 
 
 
 
- Paseo de la Castellana 39, 28046 Madrid (Spain). 
- 
89.68%(f) (2) 
- 
- 
- Parent of the Hispasat Group. Operation of the satellite communications system and rendering 
of space segment services for the geostationary orbital slots allocated to the Spanish state. 
 
 
 
 
Hispasat Canarias, S.L.U. 
 
 
 
 
-Calle Pacticante Ignacio Rodriguez s/n Edificio Polivalente IV, Fundación Canarias Parque 
Científico Tecnológico ULGPC, Planta 3, oficinas 304-305, 35017 Las Palmas de Gran Canaria 
(Spain) 
- 
89.68%(g) (2) 
- 
- 
- Sale and lease of satellites and spatial capacity 
 
 
 
 
Hispasat Brasil, Ltda. 
 
 
 
 
- Praia do Flamengo, 200 Rio de Janeiro, (Brazil) 
- 
89.68%(g) (2) 
- 
- 
- Commercialisation of satellite capacity 
 
 
 
 
Hispamar Satélites, S.A. 
 
 
 
 
- Praia do Flamengo, 200 Rio de Janeiro, (Brazil) 
- 
72.60% (h) (2) 
- 
- 
- Commercialisation of satellite capacity

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Red Eléctrica Corporación and Subsidiaries 
Page 87 of 87  
 
- Company 
 
 
 
 
- Registered office 
2019 
2018 
- Principal activity 
Percentage ownership 
(1) 
Percentage 
ownership (1) 
 
Direct 
Indirect 
Direct 
Indirect 
Hispamar Exterior, S.L.U. 
 
 
 
 
- Paseo de la Castellana 39, 28046 Madrid (España). 
- 
72.60%(i) (2) 
- 
- 
- Commercialisation of satellite capacity 
 
 
 
 
Hispasat de México, S.A. de C.V. 
 
 
 
 
- Agustín Manuel Chávez 1-001 Col. Centro de Ciudad Santa Fe, 01210 México D.F. (México) 
- 
89.68%(g) (2) 
- 
- 
- Use of radio spectrum, telecommunications networks and satellite communication. 
 
 
 
 
Consultek, Inc 
 
 
 
 
- 1036 Country Club Drive, Suite 202, Moraga, CA 94556. (United States of America) 
- 
89.68%(g) (2) 
- 
- 
- Technical consultancy services 
 
 
 
 
Hispamar Satélites, S.A. (Venezuela) 
 
 
 
 
- Torre Phelps, piso 10 ofic. 10, Caracas (Venezuela) 
- 
72.60%(i) (2) 
- 
- 
- Commercialisation and rendering of satellite telecommunications services 
 
 
 
 
Hispasat UK, LTD. 
 
 
 
 
- 3-7 Temple Avenue, Suite 38, Temple Chambers, London, EC4Y 0HP (England) 
- 
89.68%(g) (2) 
- 
- 
- Commercialisation and rendering of satellite telecommunications services 
 
 
 
 
B) Proportionately consolidated companies 
 
 
 
 
Interconexión Eléctrica Francia-España, S.A.S. (INELFE) 
 
 
 
 
- Inmueble Window, 7 C Place du Dôme, 92073 La Défense Cedex, Paris (France) 
- 
50%(b) 
- 
50%(b) 
- Study and execution of Spain-France interconnections 
 
 
 
 
C) Equity-accounted investees 
 
 
 
 
Transmisora Eléctrica del Norte, S.A. (TEN) 
 
 
 
 
- Avenida Apoquindo N°3721, piso 6, Las Condes, Santiago (Chile) 
- 
50%(e) 
- 
50%(e) 
- Electricity transmission and operation and maintenance of electricity transmission networks. 
 
 
 
 
Hisdesat Servicios Estratégicos, S.A. 
 
 
 
 
- Paseo de la Castellana 39, 28046 Madrid (Spain) 
- 
38.56%(g) (2) 
- 
- 
- Commercialisation of spatial systems for government use. 
 
 
 
 
Grupo de Navegación Sistemas y Servicios, S.L.  
 
 
 
 
- Calle Isaac Newton 1, Madrid (Spain) 
- 
12.82%(g) (2) 
- 
- 
- Operation of satellite systems 
 
 
 
 
 
(1)   Equivalent to voting rights. 
     (2) Company forming part of the Hispasat subgroup. 
(a) Investment through Red Eléctrica Internacional, S.A.U. 
(b) Investment through Red Eléctrica de España, S.A.U. 
(c) Investment through Red Eléctrica del Sur, S.A. 
(d) Investment through Red Eléctrica del Norte Perú, S.A.C. 
(e) Investment through Red Eléctrica Chile SpA. 
(f) Investment through Red Eléctrica Sistemas de Telecomunicaciones, S.A.U. 
(g) Investment through Hispasat, S.A. 
(h) Investment through Hispasat, S.A. and Hispasat Brasil, Ltda. 
(i) Investment through Hispamar Satélites, S.A. 
(j) Investment through Red Eléctrica del Sur, S.A. and Red Eléctrica Internacional, S.A.U.

Consolidated Directors’ Report 
2019 
(Free translation from the original in Spanish. In the event of 
discrepancy, the Spanish-language version prevails.)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
 
Red Eléctrica Corporación and Subsidiaries  
Page 1 of 63  
 
 
 
 
 
 
Contents 
Contents ............................................................................................................................................ 1 
 
Position of the entity ................................................................................................................... 3 
1.1. Organisational structure..................................................................................................... 3 
1.2. Activities and business performance ................................................................................. 6 
 Business performance .............................................................................................................. 12 
2.1. Key financial indicators .................................................................................................... 12 
 Liquidity and capital .................................................................................................................. 13 
 Risk management...................................................................................................................... 14 
 Average supplier payment period. “Reporting Requirement”, third additional provision of Law 
15/2010 of 5 July 2010 ................................................................................................................ 16 
 Significant events occurring after the reporting period ............................................................ 17 
 Outlook ....................................................................................................................................... 17 
 Innovation ................................................................................................................................. 19 
 Own shares ................................................................................................................................ 23 
 Other relevant information ........................................................................................................ 23 
10.1. Stock market performance and shareholder returns ....................................................... 23 
10.2. Dividend policy ................................................................................................................. 25 
10.3. Credit rating ..................................................................................................................... 25

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Red Eléctrica Corporación and Subsidiaries  
Page 2 of 63  
 
10.4. Excellence ........................................................................................................................ 25 
 Non-financial Information Statement in compliance with Law 11/2018 of 28 December 2018... 26 
11.1. Description of the Group’s business model ...................................................................... 26 
11.2. Information regarding environmental issues ................................................................... 29 
11.3. Information on social and employee-related issues ........................................................ 32 
11.4. Information about respect for human rights .................................................................... 48 
11.5. Information about the fight against corruption and bribery ............................................. 48 
11.6. Information regarding society .......................................................................................... 50 
11.7. Index of content required by Law 11/2018 of 28 December 2018 on disclosure of non-
financial and diversity information .................................................................................. 60 
 Annual Corporate Governance Report ....................................................................................... 63 
 
 
 
 
The various sections of this consolidated directors' report contain certain prospective information that reflects projections and 
estimates based on underlying assumptions, statements referring to plans, objectives and expectations associated with future 
transactions, investments, synergies, products and services, as well as statements concerning results or future dividends, or 
estimates calculated by the directors and based on assumptions that those directors consider reasonable. 
While the Group considers the expectations reflected in those statements to be reasonable, investors and holders of shares in the 
Parent are advised that the information and statements containing future projections are subject to risks and uncertainties, many 
of which are difficult to foresee and generally beyond the Group's control. As a result of such risks, actual results and developments 
could differ substantially from those expressed, implied or forecast in the information and statements containing future projections. 
The affirmations and statements containing future projections do not provide any guarantee as to future results and have not been 
reviewed by auditors outside the Group or by other independent third parties. It is recommended that no decisions be made on the 
basis of the affirmations and statements containing future projections that refer exclusively to the information available at the date 
of this report. All of the affirmations and statements containing future projections that are reflected in this report are expressly 
subject to the warnings given. The affirmations and statements containing future projections included in this document are based 
on the information available at the date of this directors' report. Except as required by applicable legislation, the Group is not 
obligated to publicly update its statements or review the information containing future projections, even where new data is published 
or new events arise.

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Red Eléctrica Corporación and Subsidiaries  
Page 3 of 63  
 
 Position of the entity 
1.1. Organisational structure 
Corporate bodies 
The board of directors and the shareholders are responsible for governing and managing the Red Eléctrica 
Group and its Parent, Red Eléctrica Corporación, S.A. (hereinafter REC). 
The shareholders' general meeting is governed by the articles of association and the general meeting 
regulations, in accordance with the Spanish Companies Act.  
The ownership structure at the date of the 2019 shareholders' ordinary general meeting was as follows: 
 
 
 
 
 
Since November 2018 the Company has had three board committees, following the creation of the new 
Sustainability Committee, which entailed the restructuring of the other two board committees, namely the 
Audit Committee and the Appointments and Remuneration Committee. These three essentially technical 
committees created by the board of directors to support it in its duties are designed to enhance efficiency 
and transparency. 
The structure, composition, roles and responsibilities of the committees are specified in articles 22 to 24 of 
the articles of association and are implemented in articles 14 to 18 TER of the regulations of the board of 
directors. Both sets of corporate regulations have been fully brought into line with the latest reforms of the 
Spanish Companies Act, the Good Governance Code of Listed Companies and the most up-to-date 
international practices and recommendations on committee composition and committee member 
independence and qualifications. At the board meeting held on 19 February 2019, the directors approved an 
amendment to the regulations of the board of directors through the restructuring of the board committees, 
specifically by creating a new Sustainability Committee and updating the duties of the other two board 
committees, i.e. the Audit Committee and the Appointments and Remuneration Committee. Among other 
amendments, the responsibilities of this latter committee were reinforced by creating a new relationship 
framework between the board of directors and the working environment of the Group companies, while the 
general oversight function to be carried out by the Audit Committee, in coordination with the specific 
oversight duties assigned individually to the other board committees within the scope of their respective 
responsibilities, was revised. At its meeting held on 30 April 2019, the Company’s board of directors approved 
a further amendment to the regulations of the board of directors, essentially with a view to reinforcing the 
role of the Company’s board of directors as the supervisor and guarantor of the functional independence of 
the electricity system operator – a role that has been legally attributed to Red Eléctrica de España, S.A.U. as 
regards the assignments and responsibilities required by current legislation. At its meeting held on 24 
September 2019 the board of directors agreed to undertake a further review of the regulations of the board 
of directors, primarily to update the duties (enterprise-wide in some cases) of the board and its committees 
in terms of sustainability, with the formal and material scope agreed by the three board committees, and to 
reinforce the mechanisms for coordination between these three committees and improve governance 
within the Group, bolstering the role of the Company’s board of directors with respect to the Group. 
At 31 December 2019 the board of directors of REC has 12 members.  
Ownership structure 
2019 shareholders' general meeting data 
20 
67 
3 10 
SEPI 
Foreign institutions 
Spanish institutions 
Non-controlling 
investors

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Red Eléctrica Corporación and Subsidiaries  
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At their general meeting on 22 March 2019 the shareholders adopted the following agreements regarding 
appointments to the board of directors: 
• 
Ratification of the appointment of Mr. Jordi Sevilla Segura as a director of Red Eléctrica 
Corporación, S.A. in the category of “other external directors”, as agreed by the board of directors 
at their meeting held on 31 July 2018, thus appointing him as a director in the aforementioned “other 
external directors” category for a term of four years. 
• 
Ratification of the appointment of Ms. María Teresa Costa Campi as a proprietary director of Red 
Eléctrica Corporación, S.A., as agreed by the board of directors at their meeting held on 25 
September 2018, thus appointing her as a proprietary director representing Sociedad Estatal de 
Participaciones Industriales (SEPI) for a term of four years. 
• 
Ratification of the appointment of Mr. Antonio Gómez Expósito as a proprietary director of Red 
Eléctrica Corporación, S.A., as agreed by the board of directors at their meeting held on 25 
September 2018, thus appointing him a proprietary director representing Sociedad Estatal de 
Participaciones Industriales (SEPI) for a term of four years. 
• 
Appointment of Mr. José Juan Ruiz Gómez as an independent director of Red Eléctrica Corporación, 
S.A. for a term of four years, to replace the independent director Mr. José Luis Feito Higueruela, at 
the proposal of the Appointments and Remuneration Committee. 
Subsequently, at its meeting held on 27 May 2019, the board of directors co-opted Mr. Roberto García Merino 
to serve as an executive director until the first general meeting of the shareholders, in order to fill the empty 
seat on the board as a result of Mr. Juan Francisco Lasala Bernad stepping down from his executive director 
role. At this same meeting, Mr. Roberto García Merino was also appointed CEO of the Company. 
Finally, at the board meeting held on 26 March 2019, the directors agreed to appoint Mr. José Juan Ruiz 
Gómez to the Appointments and Remuneration Committee, to re-appoint Ms. María José García Beato to the 
Audit Committee, and to appoint Ms. Carmen Gómez de Barreda Tous de Monsalve as a coordinating 
independent director, for a term of three years in each case. At its meeting held on the same date, the 
Appointments and Remuneration Committee appointed Ms. Socorro Fernández Larrea as chairwoman of this 
committee, also for a term of three years. 
The composition of the board committees at 31 December 2019 is as follows: 
• 
Sustainability Committee: 
o Carmen Gómez de Barreda Tous de Monsalve (coordinating independent director and 
chairwoman)  
o María Teresa Costa Campi (proprietary director)  
o Alberto Carbajo Josa (independent director)  
• 
Audit Committee 
o Antonio Gómez Ciria (independent director and chairman) 
o Mercedes Real Rodrigálvarez (proprietary director) 
o Arsenio Fernández de Mesa y Díaz del Río (independent director) 
o María José García Beato (independent director) 
• 
Appointments and Remuneration Committee: 
o Socorro Fernández Larrea (independent director and chairwoman) 
o Antonio Gómez Expósito (proprietary director) 
o José Juan Ruiz Gómez (independent director) 
The composition and powers of the board of directors and the various committees are as follows:

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Red Eléctrica Corporación and Subsidiaries  
Page 5 of 63  
 
 
 
In view of the commitment undertaken by the Company chairman at the shareholders’ general meeting held 
in April 2012, and considering international best practice in the field of corporate governance, at the 
extraordinary meeting held on 17 July 2015, called specifically for this purpose, the board of directors of Red 
Eléctrica Corporación, S.A. (REC) submitted for the approval of the shareholders a proposal to segregate the 
positions of chairman of the board of directors and chief executive of the Company, and to appoint Juan 
Lasala Bernad as executive director. The two motions were passed, with votes in favour from 99% of the 
shareholders, compared to the required quorum of 58%. At its meeting held on 28 July 2015, the board of 
directors appointed the new executive director as CEO of the Company.  
Since 2016, following the specified transition period, the chairman of the board of directors has only had the 
responsibilities inherent in that position.

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Red Eléctrica Corporación and Subsidiaries  
Page 6 of 63  
 
Moreover, the position of coordinating independent director created in 2013 has been maintained, since the 
shareholders and proxy advisors consider that this position embodies an efficient corporate governance 
practice through the responsibilities attributed to it. 
The Annual Corporate Governance Report, which is attached hereto, contains detailed information regarding 
the composition and operation of the governing bodies of the Parent. 
Composition of the Red Eléctrica Group 
The structure of the Group at 31 December 2019 is as follows: 
 
1.2. Activities and business performance 
The Group carries out the aforementioned activities both in Spain and abroad. Most notably, its principal 
activities comprise the management and operation of electricity infrastructure in Spain, Peru and Chile, and 
shortly in Brazil, and the rendering of telecommunications services (fibre optics and satellites) to third 
parties. 
Management and operation of domestic electricity infrastructure 
The mission of REE, as transmission agent and system operator for the Spanish electricity system, is 
that of guaranteeing the security and continuity of the electricity supply at all times and managing high 
voltage electricity transmission. To this end, it oversees and coordinates the generation and transmission 
system and manages the development of the transmission network. The Company seeks to fulfil its mission 
while adhering to the principles of neutrality, transparency, independence and economic efficiency, so as to 
offer a secure, efficient and high quality electricity service to society as a whole. 
The Group continues to execute its Investment Plan, entailing investments in the transmission network in 
Spain. This plan comes under the 2015-2020 Planning currently in place. 
2019 is the fourth year in which the remuneration for the transmission activity has been set pursuant to the 
remuneration model in force, which was approved in 2013. A new remuneration model for the new 2020-2025 
regulatory period was approved at the end of 2019. 
Investments in transmission network facilities in 2019 totalled Euros 396.4 million and were basically to 
address technical restrictions, extend the network mesh, execute specific projects for international 
interconnections and inter-island submarine connections, and to ensure security of supply.

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During the year, approximately 198 km of new lines came into service, bringing the total for the transmission 
network owned by the Group to 44,372 km at year end. Transformation capacity was also increased by 1,335 
MVA to a total of 93,735 MVA.  
In 2019 the most significant initiatives in terms of development of the transmission network, by major axes 
relating to assets due to enter service in the coming years, were as follows: 
• 
Mallorca - Menorca interconnection 2. 132 kV underground - submarine transmission line to 
interconnect the islands of Mallorca and Menorca and integrate renewable energy.  
• 
North - East Axis. The purpose of this axis is to improve the evacuation of electricity from Asturias 
to supply Cantabria and the Basque Country. The initiatives in progress are the expansion of the 
Itxaso substation and the Güeñes - Itxaso line. 
• 
Caparacena - Baza - Ribina Axis. The purpose of this axis is to facilitate the evacuation of energy 
from the ordinary regime, renewable sources, co-generation and waste, as well as improving the 
transmission network mesh and supporting distribution in the province of Granada. 
• 
Beniferri - La Eliana Axis. The purpose of this axis is to reduce the intensity of the short circuit 
current in Valencia and expand the network mesh, improving transmission efficiency and 
supporting supply for demand in adjacent nodes. In 2019 part of this axis, specifically the Eliana 
substation expansion, the binode and the connecting line to Feria de Muestras, came into service. 
• 
Santa Elvira Axis. The purpose of this axis is to construct a line and two 220 kV substations for the 
transmission network mesh and to support distribution in the city of Seville. The Alcores - Santa 
Elvira line and the related substations came into service in 2019. 
• 
Lousame – Tibo – Mazaricos Axis. The purpose of this axis is to reinforce the network, evacuate 
electricity generated, and support distribution in the northeast of Galicia. The Mazaricos and 
Lousame substations and the Lousame 220 kV input and output came into service in 2019.  
• 
Tías – Playa Blanca Axis. The purpose of this axis is to guarantee electricity supply in the south of 
Lanzarote and to reinforce the connection with Fuerteventura. These measures, together with the 
132 kV submarine cable interconnecting Lanzarote and Fuerteventura, will increase security of 
supply in the Lanzarote electricity system. The Playa Blanca substation came into service in 2019. 
• 
Oriol Axis. The purpose of this axis is to guarantee the electricity supply, support distribution, and 
resolve technical restrictions in Caceres. The axis is related to the Navalmoral - Badajoz high-speed 
train, which forms part of the connection envisaged between Madrid and Lisbon. 
• 
Ciudad Rodrigo – Béjar Axis. The purpose of this axis is the high-speed train connection at two 
different points on the Medina - Salamanca - Fuentes de Oñoro - Ciudad Rodrigo route. The Ciudad 
Rodrigo substation and the input and output came into service in 2019. 
• 
La Oliva – Puerto del Rosario Axis. The purpose of this axis is to carry out the necessary transmission 
network initiatives to contribute to the mesh and the evacuation of special and ordinary regime 
energy, thereby reinforcing the electricity system on the island of Fuerteventura between the 
Puerto del Rosario and La Oliva substations. The La Oliva - Puerto del Rosario line came into service 
in 2019. 
• 
Son Moix Axis. The main purpose of this axis is to find a solution for the existing evacuation from 
the Valldurgent 220 kV substation towards the city of Palma de Mallorca, to improve voltage control 
in the west of Palma de Mallorca, and to support Valldurgent’s 220/66 kV transformation. The 220 
kV-66 kV Son Moix substation and the related 220 kV input and output came into service in 2019.

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• 
Assegador Axis. The purpose of this axis is to support the distribution and integration of renewable 
energy and reinforce the city of Valencia, which is also the location of the interconnection between 
the mainland and the Balearic Islands (Sagunto). The axis runs between Castellon and Valencia. 
 
The most notable occurrences in 2019 in terms of electricity system operation were as follows: 
Mainland system 
• 
Mainland electricity demand closed the year at 249,144 GWh, down 1.7% on 2018. Corrected for the 
effect of working patterns and temperatures, the drop in demand attributable primarily to economic 
activity was 2.7%, in contrast to the prior-year trend, when it grew 0.5%. 
• 
Maximum instantaneous power was recorded on Tuesday 22 January at 20:08 hours, at a rate of 
40,455 MW. This is down 1.2% on the maximum for the prior year, and down 11.0% compared with 
the record 45,450 MW seen at the end of 2007. Peak demand in terms of time was posted on 10 
January (between 20:00 and 21:00 hours) at 40,136 MWh, 10.6% below the aforementioned all-time 
high. 
• 
Installed capacity on the mainland has risen considerably compared to the prior year, ending 2019 
at 104,652 MW, which is 5,927 MW more than at December 2018 (up 6.0%). This significant increase 
in installed capacity was driven by renewable technologies, notably solar photovoltaic, which is up 
almost 90% year-on-year. Other renewables climbed 17.4% compared with 2018. Finally, wind 
technology increased by 9.2% compared to the prior year. In terms of disposals, the Anllares coal-
fired plant, with a total of 347 MW, shut down early on in the year. The capacity of other technologies 
either did not vary or changed only insignificantly. 
• 
Hydropower capacity stood at 25,971 GWh at the end of December 2019, down 12.0% on the historical 
average and 30.6% lower than in 2018. Reserves of hydroelectric power represented a fill level of 
51.0% of total capacity across all reservoirs at the end of 2019, compared with 44.1% in the prior 
year. 
• 
In 2019, 22.6% of demand was met by nuclear technology (21.5% in 2018), 21.5% by wind power 
(19.8% in 2018), 20.7% by combined cycle generation (10.7% in 2018), 11.9% by cogeneration (11.9% 
in 2018 also) and 10.0% by hydroelectric power (13.8% in 2018). With a contribution of less than 5%, 
coal, solar technologies, other renewable sources, waste and pump-as-turbine jointly covered the 
remaining 13.3% of demand. 
• 
Renewable energy's percentage contribution to total energy generation in the electricity system 
dropped to 39.0% (40.1% in 2018). 
• 
In absolute terms, renewable generation is down 3.1% on the prior year, essentially due to the 27.6% 
drop in hydropower output. 
• 
With respect to CO2 emissions by the mainland electricity industry, the decline in coal-based 
generation and, conversely, the increase in generation from renewable sources, except 
hydropower, place emission levels for 2019 at 40.6 million tonnes, down 25.5% compared to the 54.5 
million tonnes recorded in 2018. 
• 
Electricity exchanges through the mainland-Balearic Islands link resulted in a net balance of exports 
to the islands of 1,695 GWh (up 37.4% compared to 2018), covering 27.7% of their demand. 
• 
International electricity exchanges resulted in a net import balance for the fourth year running, 
totalling 6,862 GWh in 2019.

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• 
Exports amounted to 11,859 GWh (12,916 GWh in 2018) and imports totalled 18,721 GWh (24,018 GWh in 
2018). 
Non-mainland systems 
• 
At the 2019 year end, total annual demand for electricity in non-mainland systems had declined by 
0.6% vis-à-vis the prior year. Per individual system, demand climbed 0.9% in the Balearic Islands 
and 0.4% in the Canary Islands, and dropped 0.6% in Ceuta and 1.0% in Melilla. 
• 
Installed capacity for each technology in the non-mainland systems either did not vary or changed 
only insignificantly. 
Pursuant to Law 17/2013 the Group, through REE, is tasked with developing hydroelectric pumping power 
plants in the Canary Islands, geared towards security of supply, system security and the integration of 
unmanageable renewable energies. 
In 2019 formalities for the “Chira-Soria Hydroelectric Pumping Power Plant Construction Project. 
Construction Project Reforms. Amended I” were completed. The public consultation phase having now 
elapsed, the project is currently undergoing environmental assessment by the Canary Islands government, 
with a view to obtaining an environmental impact statement, along with the other permits necessary to 
enable the works to get underway. 
Also in 2019, the technical specifications for the Seawater Desalination Plant (“EDAM” per the Spanish 
acronym) were finalised. This project, which forms part of the above-mentioned Chira-Soria project, is 
located in Arguineguín and has a capacity of 1.8 hm3/year. The technical specifications for the purchase of 
the main equipment – Francis vertical shaft pump turbines, alternators, full power converters, etc. – were 
also completed, and this investment can be undertaken once the necessary permits and licences have been 
obtained. 
With regard to the possibility of implementing a hydroelectric pumping power plant project in Tenerife, in 
2019 work was ongoing to select the best project out of those already pinpointed in 2018. 
Management and operation of international electricity infrastructure 
The Group's international business is conducted through its subsidiary Red Eléctrica Internacional, S.A.U. 
(hereinafter REI), which is present in Peru and Chile.  
At the 2019 reporting date, REI directly holds 100% of the capital of the Peruvian companies Red Eléctrica 
Andina (REA), Red Eléctrica del Sur (REDESUR) and Red Eléctrica del Norte (REDELNOR). REI also holds 100% 
of the share capital of the Chilean company Red Eléctrica Chile (RECH).  
REI currently manages a network of 1,686 km of lines in Peru and 1,729 km of lines in Chile, and benefits from 
preferential positioning with regard to future interconnections between Chile–Peru and Peru–Ecuador. 
Activity in Peru 
REDESUR is the sole owner of TESUR (Transmisora Eléctrica del Sur), TESUR 2, TESUR 3 and TESUR 4.  
In 2019, the management excellence of REDESUR, TESUR and TESUR 2, which all manage electricity 
transmission infrastructure on a commercial operation basis, enabled them to offer an energy transmission 
service with maximum availability, while supporting development in their operating environment. 
For REDESUR, consolidation of the Integrated Management System (IMS) has allowed the company to 
continue delivering excellent operating standards, with a network availability factor of 99.84% in 2019, above 
the average for the last five years (99.77%). TESUR’s transmission facilities posted 99.88% availability.

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TESUR 2, meanwhile, is in its first years of operating its concession facilities, these having come into 
commercial operation in mid-2018. The availability factor for TESUR 2’s network in 2019 was 99.87%. 
TESUR 3, the concession holder for the 220 kV Montalvo – Los Héroes transmission line in southern Peru, has 
successfully completed its project. The facilities are expected to come into commercial operation in the 
opening months of 2020.  
REA renders maintenance services for the concessions under operation, namely REDESUR, TESUR and 
TESUR 2. Furthermore, in 2019 this company completed all of the necessary tasks to develop and implement 
the special projects undertaken by REDESUR, and also engaged in work for TESUR 3 and TESUR 4. In addition, 
REA carries out facilities maintenance and supervises works for other clients, consolidating its position in 
southern Peru as a leading provider of such services. 
The new projects and developments in Peru, awarded in 2017 and 2018, namely TESUR 4 and the extension 
of REDESUR’s Puno substation, are currently under construction and at different stages of execution. These 
projects are expected to be completed and enter service in the coming years. 
On 18 July 2019, REI acquired Zero-E Dollar and Cajamarca Invest, S.L. (both part of the Cobra Group) and 
100% of the shares of CCNCM. Since the end of 2017, these assets have been in commercial operation under 
a 30-year concession awarded by the Peruvian government. Concesionaria Línea de Transmisión CCNCM 
S.A.C. (CCNCM) is wholly owned by the Peruvian company REDELNOR. CCNCM is the concession holder for 
the 220kV Carhuaquero – Cajamarca Norte – Moyobamba – Caclic transmission line and the related 
substations. 
Activity in Chile 
The transmission business in Chile comes under the umbrella of the parent company in that country, Red 
Eléctrica Chile (RECH). This company was incorporated by REI in 2015 and its principal activities comprise 
the acquisition, holding and management of the Group’s equity investments in Chile, and the provision of 
commercial advisory, financial and business services to the Group’s investees. RECH holds a 50% interest in 
Transmisora Eléctrica del Norte (TEN), a 69.9% interest in Red Eléctrica del Norte (REDENOR, incorporated 
in 2018) and 100% of Red Eléctrica del Norte 2 (REDENOR 2, acquired in 2018). 
TEN constructed and operates the 500 kV Changos – Cumbre – Nueva Cardones axis, which forms part of the 
National Transmission System, as well as the 220 kV Mejillones – Changos dedicated line. Construction of 
the 500 kV axis enabled the creation of the National Transmission System in 2017, through the 
interconnection of the systems existing at that time, namely the Central Interconnected System (“SIC”) and 
the Far North Interconnection System (“SING”). In 2019, TEN completed its second full year of commercial 
operation, and with a high availability factor for its facilities (99.75% for lines and 99.66% for substations), 
on a par with the prior year’s availability. 
REDENOR has continued its construction of the transmission facilities, awarded in 2017. This project entails 
the construction and subsequent operation of a substation in northern Chile (Nueva Pozo Almonte 220 kV) 
and 258 km of 220 kV lines leading up to the Pozo Almonte, Cóndores and Parinacota substations.  
REDENOR 2 has completed the first year of commercial operation of its facilities (three 220 kV lines linking 
the El Cobre – Esperanza – El Tesoro – Encuentro substations). It is also immersed in the extension works on 
its facilities encompassed in the Transmission System Expansion Plan, entailing the construction of a new 
220 kV substation. 
Activity in Brazil 
On 22 November 2019, Red Eléctrica Internacional and the Colombian company Grupo Energía Bogotá S.A. 
ESP (GEB) reached an agreement to jointly acquire, on a 50/50 basis, 100% of the ordinary shares of Argo

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Energía (Argo Energía Empreendimentos e Participacoes, S.A.), which currently belongs to funds managed 
by Patria Investments and to Sommerville Investments B.V., an indirect subsidiary of Temasek Holdings 
(Private) Limited. Argo Energía holds three 30-year electricity transmission concessions in Brazil, amounting 
to 1,460 km of 500 kV and 230 kV lines and 11 substations, of which 1,150 km of lines and five substations have 
been operating since October 2019. The two concessions, which form part of the Brazilian national 
transmission system, and two of which are currently under construction, will generate revenues of around 
Euros 190 million in 2023 once they come into service. For the contract to come into effect, various permits 
must be obtained from regulators, including ANEEL and the Brazilian competition authority CADE. The final 
purchase price has been set at BRL 1,775 million for 50% of the shares. 
Telecommunications 
Satellite business 
Red Eléctrica Sistemas de Telecomunicaciones, S.A. (hereinafter RESTEL) was incorporated in 2018 for the 
purpose of carrying out the following activities, among others: 
• 
The acquisition, holding, administration, management and handling of Spanish and foreign equity 
securities, and the placement of financial resources arising from these activities. 
• 
Grid operation and the provision of telecommunications services to third parties. 
On 3 October 2019, once the conditions precedent for the contract signed on 12 February 2019 had been met, 
RESTEL acquired 89.68% of the shares of the Hispasat Group for Euros 933 million. The other Hispasat Group 
shareholders are SEPI, with a 7.41% interest, and the CDTI, which holds 2.91%. 
Hispasat is the leading satellite infrastructure operator in Spain and Portugal by volume of business, and 
also ranks as the fourth operator in Latin America and the eighth operator worldwide. It is the leading 
distributor of content in Spanish and Portuguese. 
The Hispasat Group’s principal activity consists of leasing spatial capacity and providing broadband 
managed services, through the operation and commercial exploitation of its fleet of satellites in orbit and 
the related land-based segment. These activities are conducted through the Group’s parent, Hispasat, S.A., 
which operates and commercialises the Group’s satellites that are not located in orbit over Brazilian territory, 
and through Hispasat Canarias, S.L., Sociedad Unipersonal, Hispamar Satélites, S.A., Hispamar Exterior, S.L., 
Sociedad Unipersonal, and Hispasat México, S.A. de C.V., which jointly operate and commercialise the 
satellites that are in orbit over Brazilian territory. 
The Group has a corporate presence in five countries: Spain, Brazil, Mexico, Argentina and Colombia, and 
serves customers in more than 26 countries. 
Various contracts were executed in 2019, both for the distribution of television channels and for connectivity. 
Efforts were made to boost development of the connectivity business in a mobility context. 
New initiatives were also undertaken in 2019 to commercialise Ka-band services in Central and North 
America. 
Lastly, and notably, manufacturing of the new Amazonas Nexus satellite, equipped with a new generation 
HTS payload and a digital processor, got underway at the end of 2019. 
Fibre optics business 
The Group conducts its fibre optics business in Spain, through the subsidiary Red Eléctrica Infraestructuras 
de Telecomunicación, S.A.U. (hereinafter REINTEL).

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REINTEL is the Group company responsible for operating telecommunications networks and rendering fibre 
optic telecommunications services to third parties. 
REINTEL is a neutral provider of telecommunications infrastructure. Its principal activity is leasing dark fibre 
and associated infrastructure. REINTEL also provides maintenance services for fibre optic cables and 
telecommunications equipment. At present, the company operates a fibre optic network in excess of 50,000 
km rolled out over the electricity transmission grid and the railway network, guaranteeing transparent 
access on equal terms to its customers and to telecommunications sector players. 
REINTEL has been awarded, for a period of 20 years until November 2034, the rights to use and operate the 
fibre optic network not used for railway services, and the related infrastructure, owned by Adif-Alta 
Velocidad. 
 Business performance 
2.1. Key financial indicators 
In 2019 the Red Eléctrica Group’s financial statements reflect the impact of the acquisition of Hispasat – this 
company has formed part of the consolidated Group since 3 October. As a result, revenue is up 3.0% on the 
same period of the prior year.  
EBITDA totalled Euros 1,582.4 million and includes Euros 33.0 million generated by Hispasat. This indicator 
has climbed 2.8% compared to 2018. 
Operating expenses were as follows: 
• 
The cost of supplies and other operating expenses totalled Euros 352.1 million, including Euros 5.9 
million pertaining to Hispasat. This reflects an increase of 4.0% compared with the previous year. 
• 
The year-end headcount was 2,056 employees, including 200 Hispasat workers. The average 
headcount was 1,857 employees. 
Personnel expenses are therefore up 5.5% on the prior year. This growth rate would have been 3.0% 
were it not for Hispasat-related expenses. 
EBIT totalled Euros 1,081.4 million, up 1.1% on 2018. Not considering Hispasat, the rise in this indicator would 
have been 0.8% compared with the previous year. 
The net finance cost amounted to Euros 134.0 million, a difference of Euros 0.5 million compared with the 
prior year. The higher average gross financial debt, totalling Euros 5,936 million, was offset by lower average 
borrowing costs, the rate sliding from 2.42% in 2018 to 2.29% in 2019.  
Lastly, profit for the year totalled Euros 718.0 million, up 1.9% on the same period of the previous year. The 
tax rate stood at 24.3%.  
The Group’s investments during the year amounted to Euros 1,870.4 million. Euros 396.4 million of this 
amount were used to develop the national transmission network. Moreover, Euros 225.5 million were 
channelled into developing the international electricity transmission business, notably entailing the 
acquisition of Cajamarca for Euros 178.4 million. Lastly, Euros 1,215.2 million were fed into the development 
of the telecommunications business, primarily reflecting the investment in Hispasat. 
Dividends paid with a charge to the prior year's profit totalled Euros 530.8 million, equivalent to Euros 0.9831 
per share. 
As a result of the Red Eléctrica Group’s vibrant investment activity in 2019, net financial debt amounted to 
Euros 6,025.6 million at 31 December, compared with Euros 4,682.7 million at the 2018 reporting date.

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At 31 December 2019, 89% of the Group's financial debt is non-current. In terms of interest, 78% of the 
Group's debt is fixed-rate and the remaining 22% is variable-rate. 
In 2019, the average cost of the Group's financial debt was 2.29%, compared to 2.42% in the prior year. 
Average gross debt was Euros 5,936 million, compared with Euros 5,499 million in the previous year. 
Lastly, at 31 December 2019, the Group's equity stood at Euros 3,614 million. 
Financial indicators (millions of Euros) 
2019 
2018 
∆% 
Revenue 
2,007.2 
1,948.5 
3.0% 
EBITDA 
1,582.4 
1,539.7 
2.8% 
EBIT 
1,081.4 
1,069.8 
1.1% 
Net profit 
718.5 
704.5 
2.0% 
ROE (Profit after tax / Equity) 
19.9% 
21.0% 
-5.2% 
Cash flows from operating activities 
1,045.2 
1,100.0 
-5.0% 
Dividends paid 
530.8 
495.1 
7.0% 
Equity 
3,614.4 
3,361.4 
7.5% 
Gearing (Net financial debt / Net financial debt+Equity) 
62.5% 
58.2% 
7.4% 
Total assets 
12,662.0 
11,262.1 
12.4% 
Debt service coverage ratio (Net debt / EBITDA) 
3.8 
3.0 
25.4% 
 
 Liquidity and capital 
The Group's liquidity policy has been designed to ensure payment obligations are met, by diversifying how 
financing requirements are covered and when debt matures. 
The Group’s robust liquidity position allows for prudent liquidity risk management. This position is essentially 
based on cash flow generation, primarily through regulated activities; appropriate management of collection 
and payment periods; and the financial capacity obtained through short- and long-term credit facilities. 
At 31 December 2019 the undrawn balance on credit facilities amounts to Euros 1,768 million and cash 
surpluses of Euros 329 million are available.  
The average maturity of the debt drawn down at the end of the year is 5.2 years. 
 
The Group's financial strategy has aimed to reflect the nature of its businesses, at all times adhering to the 
legislation in force. The activities conducted by the Group are very capital-intensive, wherein a major portion 
of investments mature over extensive periods. In addition, these assets are remunerated over long periods 
of time, meaning that financial debt is primarily long-term and fixed-rate. The Group’s strategic commitment 
to long-term, enterprise-wide sustainability is also present in its responsible and transparent management 
style, which promotes sustainable sources of financing.

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The Group's capital structure policy ensures a financial structure that optimises the cost of capital through 
a sound financial position, which balances the generation of value for shareholders with competitive costs 
of financing. Capital is periodically monitored through the gearing ratio, which in 2019 stood at 62.5%, 
compared to 58.2% in 2018. This ratio is calculated as net financial debt divided by equity plus net financial 
debt. 
To maintain and adjust the capital structure, the Company can adjust the amount of dividends payable to 
shareholders, reimburse capital or issue shares. 
 Risk management 
The Group has implemented a Comprehensive Risk Management System, which aims to ensure that any risks 
that might affect its strategies and objectives are systematically identified, analysed, assessed, managed 
and controlled, according to uniform criteria and within the established risk levels, in order to facilitate 
compliance with the strategies and objectives of the Group. The Comprehensive Risk Management Policy 
was approved by the board of directors. This Comprehensive Risk Management System, the Policy and the 
General Procedure are based on the COSO II (Committee of Sponsoring Organizations of the Treadway 
Commission) Enterprise Risk Management Integrated Framework. 
The Corporate Risk Map depicts the Group's most significant risks and is prepared applying a bottom-up 
methodology, whereby the risks are identified, analysed and assessed by the different organisational units 
before being escalated for validation by Directors, General Managers and Corporate Directors, until their final 
presentation to the Chair of the Group, the Executive Committee, the Audit Committee and the Board of 
Directors. 
The Board of Directors is responsible for approving the Risk Policy and acceptable level of risk of the Group, 
while the Audit Committee is tasked with overseeing the effectiveness of the Comprehensive Risk 
Management System. The Executive Committee is responsible for implementing adequate monitoring of the 
Group’s significant risks and the action plans to mitigate these risks. 
The main risks to which the Group is exposed and that could affect achievement of its objectives are 
regulatory risk, including tax risks, inasmuch as the Group's principal business lines are subject to 
regulations, operational risk, primarily arising from the activity carried out in the electricity and 
telecommunications sectors, financial risk and environmental risk. 
The Comprehensive Risk Management Policy also covers financial risk management, as detailed in the note 
to the consolidated annual accounts on Financial Risk Management Policy. The Company’s Sustainability 
Report provides further details of the Group’s main risks at present, as well as risks which could emerge in 
the future. 
78%
22%
Financial debt structure: Fixed vs. Variable
Fixed rate
Variable rate

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Information on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) 
In relation to the risks and opportunities associated with climate change, in 2018 the Group began to work 
on implementing the recommendations of the TCFD. 
Substantial progress was made on this work in 2019. Specifically, an in-depth review was performed of the 
management model for the risks and opportunities associated with climate change, and a new method for 
the prioritisation and economic quantification thereof was developed, which has been implemented on the 
basis of different scenarios.  
Governance 
Significant risks relating to climate change have been included in the Corporate Risk Map, adopting the 
governance model described above. Moreover, the information on climate change risks and opportunities 
has been passed on to the Sustainability Committee for supervision, in collaboration with the Audit 
Committee, as part of its oversight role over the comprehensive risk control system. The Sustainability 
Committee also supervises the corporate responsibility and climate change policies in order to integrate the 
results of the climate change risks and opportunities analysis into the Group's decision-making.  
The Company's strategic plans reflect the climate change strategy, considering the risks and opportunities 
identified, detailing the lines of action, setting out the objectives and defining high-level responsibilities. 
Based on the strategic guidelines, the business areas will establish specific climate change initiatives within 
their operational plans with a view to keeping the exposure to these risks below acceptable levels. Such 
plans will include specific objectives and responsibilities. 
Identification and quantification of risks and opportunities  
Climate change risks and opportunities comprise both physical risks and opportunities related to changes 
in climate variables (which could directly affect the facilities or impact the services rendered by the Group) 
and transition risks and opportunities (related to changes stemming from the fight against climate change: 
regulatory, technological, market and reputational).  
The risks and opportunities have been identified and assessed considering different scenarios: 
• 
For physical risks, AEMET's projections for the most important scenarios of the IPCC AR5 1 (RCP 4.5 
and RCP 8.5) have been considered.  
• 
The regulatory and transition scenarios are based on the proposed National Integrated Energy and 
Climate Plan sent to the European Commission, having considered the trend scenario and the target 
scenario.  
The transition risks and opportunities analysis focuses on the 2020-2030 horizon, while the physical risks 
and opportunities analysis focuses on a longer time frame (2030-2050-2070). The economic impact has been 
quantified for the 2020-2030 period in both cases.  
The risks and opportunities identified are assessed considering variables such as exposure, sensitivity and 
capacity to adapt. They can thus be prioritised based on their importance.  
Significant risks and opportunities are scrutinised in order to quantify the Group’s exposure based on 
economic variables and/or business indicators.  
                                                
1 IPCC Fifth Assessment Report (2014) drawn up by scientists from various countries. RCP 4.5 is a target scenario and 
RCP 8.5 is a trend scenario contemplating greater changes in climate parameters.

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Conclusions: Risks and opportunities 
High-priority risks are as follows:  
Physical: 
• 
Impact of extreme events (wind) on outdoor facilities (power lines). 
• 
Fires beneath the lines and near substations. 
The economic impact of physical risks is reduced considerably by insurance policies. The estimated annual 
impact is no more than 1% of the Group's profit.  
Transition: 
• 
Stricter legal requirements related to the use of fluorinated gases (SF6). 
• 
Difficulties in monitoring and controlling a system with a greater penetration of renewable energy, 
whose production is highly volatile.  
• 
Claims due to limitations on renewable energy production and incidents that may affect the security 
of supply in the Canary Islands.  
• 
Difficulties in bringing into service the necessary infrastructure for the energy transition (this risk 
is identified and analysed specifically for international interconnections).  
The latter has been identified as the most significant climate change transition risk for the Group. In order 
to meet the objectives of the energy transition, the transmission network must be developed, mainly in 
respect of the evacuation and integration of renewable power generation. However, due to social aversion 
to this type of infrastructure and the long waits to obtain the necessary authorisations for its development, 
there could be difficulties in bringing the required facilities into service. The annual impact estimated for 
this risk is less than 3% of the Group’s profit, in the worst case scenario. 
For the remaining transition risks the impact is less than 1% of the Group’s profit. 
Meanwhile, energy transition policies provide huge opportunities for the Group, connected to the 
development of infrastructure to make the transition possible: integration of new renewable energy 
capacity, interconnections, high-speed trains and support for an increased electrification of society. 
Investment opportunities have been identified in the transmission network (lines and substations), storage 
and other technical solutions to address the energy transition challenges (protection systems, FACTS 
equipment, and other control and monitoring equipment).  
To a much lesser extent, the Group’s improved performance in respect of mitigating and adapting to climate 
change could be a boon for its reputation, leading to better financing opportunities or higher stock prices. 
 Average supplier payment period. “Reporting Requirement”, third additional 
provision of Law 15/2010 of 5 July 2010 
In accordance with the Spanish Accounting and Auditing Institute (ICAC) resolution of 29 January 2016 
regarding the information that must be disclosed in the notes to annual accounts on average payment 
periods to suppliers in commercial transactions, the average supplier payment period in the case of Spanish 
Group companies was 47.6 days at the 2019 year end. 
The disclosures required by this resolution are contained in note 21 to the Group's annual accounts for 2019.

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 Significant events occurring after the reporting period 
On 24 January the Company, through its subsidiary Red Eléctrica Financiaciones, S.A.U., issued bonds, 
guaranteed by Red Eléctrica Corporación, S.A. and Red Eléctrica de España, S.A.U., amounting to Euros 700 
million and with a maturity of 8.5 years. The bonds pay an annual coupon of 0.375% and their issue price is 
98.963%, representing a return of 0.500%. The funds obtained with this bond will be used to finance and/or 
refinance Eligible Projects within Red Eléctrica de España, S.A.U.’s recently announced Green Financing 
Framework. 
On 28 January Mr. Jordi Sevilla Segura stepped down as chairman of the Parent and, as a result, chairman 
of the board of directors, having been appointed as such by the board on 31 July 2018. 
 Outlook 
As regards the management of the different businesses, the Group will continue to undertake its activities 
in order to meet the targets set out in the 2018-2022 Strategic Plan, implementing a model encompassing 
two major lines of action in equal proportion: operations subject to market risk which offset the 
concentration of regulatory risk, and regulated operations which offset market risk. To this end, the Group 
will: continue to develop the role of the Spanish TSO, helping to make the energy transition possible; take 
further steps to consolidate its position as a leading operator of both fibre optic and satellite 
telecommunications infrastructure; focus its attention on managing its international business; and invest in 
technological acceleration and innovation. 
Executing the strategy, underpinned by efficiency, digital transformation and personnel development, will 
enable the Group to adapt to the new, stricter regulatory and remuneration environment, and to generate 
more ways of creating value. 
The Group will uphold its commitment to maximising value for its shareholders, offering an attractive return 
in the form of dividends and generating value through efficient management of its activities, analysing 
alternatives for expanding its core business, maintaining a robust capital structure and working to guarantee 
supply with the utmost level of quality. 
The Group will therefore continue to seek the generation of long-term value, creating lasting, competitive 
advantages and improving our corporate reputation, whilst focusing on providing optimum service to society 
– the differentiating feature of the Group's management. 
Lastly, the Group will foster the roll-out of its 2030 Sustainability Commitment. Sustainability is the Group’s 
long-term commitment to unlocking shared value for all its stakeholders by carrying out its activities 
responsibly. 
Outlook for the management and operation of domestic electricity infrastructure 
Regulated activities, aimed at facilitating the energy transition in Spain, primarily observe the following lines 
of action: 
• 
The integration of more renewable sources of energy generation in the electricity system, 
supporting the change to zero emission carriers and greater energy efficiency. 
• 
Making the user the centre of the electricity system, providing new services for an increasingly 
active user. 
• 
The creation of a genuine electricity system platform, providing more information to allow for the 
participation of all agents and the integration of all markets.

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• 
Galvanisation of electric mobility, fostering the electrification of transport and the penetration of 
electric vehicles as an alternative mode of transport. 
• 
Development of storage based on the management needs of the system in order to implement a 
more flexible electricity system. 
• 
The digitalisation and roll-out of smart networks, committing to technology. 
• 
A higher degree of interconnection, furthering integration with the European market and improving 
the functioning of non-mainland systems. 
 
All of these challenges will continue to require a sustained and significant level of investment in the 
transmission network in the coming years, with a considerable technological component, which will be rolled 
out in a new, stricter regulatory and remuneration environment 
The Group will apply a financial policy adapted to the new remuneration model for the transmission activity, 
ensuring that financial debt is diversified and its liquidity position can comfortably cover upcoming 
maturities, aiming for a robust financial structure that incorporates sustainability criteria. 
Outlook for the management and operation of international electricity infrastructure 
The Group will continue to focus its international business activity on strengthening its performance in 
countries where it has a presence, specifically Peru, Chile and Brazil. 
Moreover, as a way of expanding the core business, efforts will centre on executing projects or acquisitions 
that meet a number of geographical, strategic and financial criteria, so as to consolidate international 
presence. 
Outlook for telecommunication activities 
With regard to the satellite telecommunications business, this activity is immersed in a phase of profound 
transformation, mainly characterised by stagnation of the traditional business, which is based on the long-term 
leasing of spatial capacity and is highly conditioned by demand for video services. Moreover, satellite operators 
are shifting the focus towards data services, which show better growth prospects.  
In addition, the sector is in a period of technological disruption, with satellite manufacturers and operators 
pursuing a variety of technological solutions to obtain much higher volumes of spatial capacity at a significantly 
lower unit cost.  
The strategy consists of protecting the current business whilst taking action to solidify the company’s 
positioning in an increasingly complex competitive environment. The main strategic areas and actions 
proposed in the different lines of work can be summarised as follows: 
• 
Rendering services with greater added value in certain vertical markets where the company holds a 
robust competitive position. 
• 
Investing in new spatial systems in order to optimise the existing fleet and offer competitive 
satellite capacities in the vertical markets showing the best long-term outlook. 
• 
Making strategic alliances with other players in the sector to strengthen Hispasat’s position and 
enhance the roll-out of services in its fleet of satellites. 
 
In addition, the telecommunications activities carried out by REINTEL, as a provider of telecommunications 
infrastructure, will focus on the backbone fibre network market, specifically the lease of dark fibre in the 
infrastructure associated with telecommunications sector players. To this end, the commercial plan will

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continue to be implemented and the investments requested by customers will continue to be made, in order 
to generate new revenues for the Group. 
Furthermore, work will remain ongoing to make progress on interconnecting rail and electrical fibre 
networks with the aim of offering new solutions to customers, such as new redundant sources and access 
points, whilst continuing to uphold the high standard of service quality offered to its customers. 
 Innovation 
The Group subsidiary Red Eléctrica y de Telecomunicaciones, Innovación y Tecnología, S.A.U. (hereinafter 
RETIT) was incorporated in 2019. This new Group company will foster the energy transition and the 
transferability and accessibility of information, thus helping to address the current and future challenges 
faced in global management of strategic infrastructure. 
The creation of this new company leads the Group to focus its interest on the latest technological advances. 
These can positively affect the Group's current businesses and the potential development of new 
businesses. The development of new applications and technologies that could be of interest to third parties 
is an integral part of the Group's activity. 
The aim is to adopt technologies that are useful for the Group and could potentially add value to its current 
or future businesses, whilst the company will also showcase, through their commercialisation, technologies 
developed by the Group, whether exclusively or via alliances with other partners. 
This facilitates and strengthens the relationships between the Group and the entire ecosystem of innovation 
and entrepreneurship, in Spain and abroad, underscoring the Group's know-how and attracting ideas and 
external talent to create value. In the current climate of innovation and change, the acceleration 
programmes for start-ups and investment in venture capital are pivotal tools to strengthen presence and 
impact within the ecosystem. 
Activity is strategically centred on impact areas and technology niches: 
Impact areas and technology niches 
 
 
The initiatives undertaken by the Group in 2019 across all of its capabilities are as follows: 
• 
Start-ups accelerator: the first acceleration programme was launched at the end of December. 
More than 500 compelling start-ups were whittled down to four, which propose different tech-based 
solutions such as augmented reality, artificial vision, artificial intelligence, virtual reality, 
blockchain, etc. The aim is to explore collaboration structures with a business approach 
(collaboration, commercialisation, new providers, joint projects, new lines of business, etc.) and/or

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a possible investment, while providing support and assistance for growth, making the most of the 
Red Eléctrica Group’s know-how and its assets. Four companies were selected. 
• 
Corporate venture capital (CVC): in 2019 the Group signed an agreement to invest Euro 5 million in 
the venture capital fund ADARA VENTURES, as an open innovation tool, to be rolled out in 2020.  
• 
Innovation hub: as part of the open innovation strategy, several agreements and collaborations were 
finalised in 2019 with a view to driving innovation through cooperation with key players in the 
ecosystem:  
Barrabés: “Madrid in motion” mobil-
ity hub 
To participate as a supporting partner in the masterminding of an 
innovative mobility ecosystem centred in Madrid and with a global 
impact, contributing CECOVEL know-how and the ability to inter-
act and participate in projects that are in line with the Group’s 
strategic challenges. 
EDF. Innovation 2 Business (I2B): 
energy transition hub  
To be part of the innovation ecosystem that aims to convert the 
Iberian Peninsula into the European hub for energy transition, 
bringing together the key players in Spain and Portugal.  
Banco Sabadell: Bstartup 
To support young, innovative tech companies through access to 
funding. 
Asociación Española de Capital, 
Crecimiento e Inversión (ASCRI) 
To showcase and deepen RETIT’s direct investment and venture 
capital structure, taking up a leading position among direct cor-
porate investment players (corporate venture capital). 
SEPI – Desarrollo Empresarial (SEPI-
DES) 
To study the possibility of sharing investment opportunities in 
their initial phases, as well as potentially collaborating with other 
SEPI companies and institutions in the creation of a venture cap-
ital fund.  
EIT InnoEnergy 
To access an innovation ecosystem centred on sourcing technol-
ogies geared towards the energy transition.  
 
• 
Technology labs: collaborative agreements have been signed with Ericsson, MasMovil and Cellnex, 
and the scope, planning and budget have been established for development of the initial minimum 
viable product (MVP), which will enable exploration of the electricity transmission network 
infrastructure's potential to integrate 5G technology. 
• 
A proposal was submitted in the second round of “Plan Nacional 5G” (Red.es), which will develop pilot 
tests applying 5G technology to various use cases in line and substation construction and 
maintenance processes. The proposal was presented by a consortium led by Orange and with the 
involvement of the Red Eléctrica Group, Arbórea, Vysion, Robotnik, CFZ Cobots, Idrica and Etra. 
• 
Project management office: in 2019 the foundations were laid to achieve more efficient 
management of innovation projects and programmes. A total of 88 internal innovation projects were 
managed, broken down by impact areas and technology niches in which the Group concentrates its 
activity. The most significant projects by impact area are as follows: 
o Citizens in the spotlight: 10 projects were undertaken, most notably the DATAHUB project 
(development of a data hub system that incorporates hourly measurements from the smart 
metres of type 5 consumers, those with a contracted capacity of 15 kW or less, which are used 
by some 28 million small consumers in the Spanish electricity system; new services could be 
provided on the basis of the information gathered and processed).

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o Development and smart management of assets and processes: 48 projects were executed, 
notably including the Grid2030 programme, a multi-year collaborative innovation scheme that 
is groundbreaking in Spain, and through which Red Eléctrica and Innoenergy explore radical 
innovations of a technical or socio-economic nature relating to the operation of the electricity 
system and its transmission network. The projects underway are: i) FST (Flexible Smart 
Transformer) run by CIRCE technology centre / EFACEC High Voltage (Spain / Portugal). FST 
consists of the design, development and testing of a new power electronics device based on 
silicon carbide semiconductors, with multiple potential applications as a transformer to 
convert AC to DC and vice versa, with active control and new functionalities; ii) RITSE (Reduced 
Inertia Transient Stability Enhancement) run by IMDEA Institute / SUPERGRID (Spain / France). 
RITSE consists of two complementary and coordinated control systems to improve transient 
stability in electricity systems: DVAC (Dynamic Virtual Admittance Control), with HVDC links; 
and BATTERTIA (Battery Grid Interface for Improved Transient Stability), with batteries; iii) 
ENIGMA (ElectrIc Grid Ai), the main purpose of which is to study frequency stability in an 
electrical subsystem via simulation and application of neural networks and deep reinforcement 
learning methodologies when analysing the results obtained. ENIGMA centres on optimising the 
principles of functionality and parameterisation of the control functions implemented in the 
new electronic devices connected to the electricity network. 
o Electrification of society: 2 projects have been undertaken: ALMACENA (field installation of a 
storage system and analysis of the contribution made by this type of system to services that 
are ancillary to transmission network operation); and BATERIA VERDE (reducing the cost of 
electricity supply for Red Eléctrica ancillary services). 
o Renewable energies and electricity system flexibility: 27 projects have been carried out. These 
notably include SIFOV (the design of a system to identify transmission line faults using 
travelling wave technology) and DLR (development of the method and tools to determine the 
transmission capacity of overhead cables in real time, upgrading current capacity predictions 
to 36 hours). 
o Transmission and access to information: 1 project has been undertaken, namely PRODINT 
(evaluation and analysis of the applicability to REE of the SIGFOX wireless telecommunications 
network, specifically designed to connect “Internet of Things” (IoT) sensors, as well as 
development and deployment of a prototype system for detecting forest fires in the vicinity of 
power cables, and support for REE based on this new technology).  
• 
Commercialisation: in 2019 the Group embarked upon the commercialisation strategy to showcase 
among third parties the products and services arising from the innovation process, and to roll out 
the necessary marketing, pre-sales, sales and customer service initiatives. The roll-out of a 
commercialisation plan for the Advanced Asset Management Solution (“SAGA” per the Spanish 
acronym) software developed by the Red Eléctrica Group, which has attracted interest from various 
Spanish and foreign companies, has got underway. SAGA was built drawing on the findings of the 
MANINT project and it incorporates the VEGETA algorithm, which predicts vegetation growth and 
optimises felling and pruning plans.  
Throughout 2019 work remained ongoing for proprietary R&D&i projects relating to the management and 
operation of electricity infrastructure nationwide. These projects notably include CECOVEL and ALMACENA. 
The CECOVEL (Electric Vehicle Control Centre) project is an REE initiative to support electric mobility in the 
present energy transition scenario. Since January 2017 the CECOVEL project has made it possible to monitor 
demand for electricity to charge electric vehicles, pre-empting the mass introduction of electric vehicles to 
ensure they can be integrated safely and effectively. CECOVEL is a collaborative project involving four 
mobility operators in Spain: IBIL-REPSOL, GIC, FENIE and MELIB. 2019 ended with 1,865 charging stations

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integrated, both public and private, with capacities from 2.3 kW to 350 kW and real-time connections to the 
mobility operators collaborating on the project, which can perform remote smart management. 
The ALMACENA project has enabled future applications of new storage technologies to be studied in more 
detail, as regards the integration of renewable energies and improvements to system operation services, 
through electrochemical energy storage equipment set up in Carmona (Seville). The scheduled operation and 
maintenance of the equipment continued in 2019 and is expected to remain ongoing in 2020. 
The main activities being carried out in relation to the satellite business are: 
• 
Video business: new advanced video platform incorporating Push-VoD services with the platform 
Quadrille. 
• 
Security and emergencies: incorporation into the portfolio of products and services for solutions 
tailored to security and emergency environments. Hispasat has also participated and continues to 
participate in the Horizon 2020 UNICRINF project, which employs Hispasat telecommunications 
infrastructure in catastrophe scenarios. 
• 
Mobility: this is considered one of Hispasat's growth areas, and from an innovation perspective work 
is ongoing to develop access solutions for professional business under the agreement with Phasor 
for development of an antenna optimised for professional vehicles. Work is also underway to devise 
and implement railway connectivity solutions and maritime mobility solutions with content 
distribution via the Push-VoD platform. 
• 
5G: satellites are expected to play an important role in the development of new 5G infrastructure, 
supporting terrestrial networks. In this respect, Hispasat has participated in the European NRG-5 
project, inter alia, the aims of which include predictive maintenance of power lines and gas plants 
using drones. 
• 
IoT (Internet of Things): various pilot tests for IoT applications in the agri-food sector have been 
carried out and an agreement has been reached with one of the main agri-food ERP providers. 
• 
WiFi solutions: development and roll-out of WiFi internet access solutions tailored to rural areas. 
Efforts are also being made to find low-cost integrated backhaul solutions for Hispasat’s portfolio. 
• 
New infrastructures are being pursued to provide a competitive advantage vis-à-vis costs and 
performance for Hispasat. In this regard, the company is involved in various working groups with 
HAPS (High Altitude Platforms) solution manufacturers and providers, analysing the viability and 
possibility of providing hybrid HAPS – Satellite services.

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The Group’s efforts towards innovation in 2019 amounted to Euros 10.6 million, including the 
commitment to invest Euros 5 million in the venture capital fund. The following graph depicts 
expenditure trends in recent years.  
 
 Own shares 
In order to provide investors with adequate levels of liquidity the Company acquired 4,702,441 shares with a 
total par value of Euros 2.4 million and a cash value of Euros 86.1 million in 2019. A total of 3,875,646 shares 
were sold, with an overall par value of Euros 1.9 million and a cash value of Euros 72.5 million. 
At 31 December 2019 the Company held 2,024,844 own shares, with a par value of Euros 0.50 per share, 
representing 0.37% of its share capital. These shares had an overall par value of Euros 1.0 million and an 
acquisition price of Euros 18.03 per share (see note 12 to the annual accounts) and a market value of Euros 
36.3 million. 
The Parent has complied with the requirements of article 509 of the Spanish Companies Act, which provides 
that the par value of acquired shares listed on official secondary markets, together with those already held 
by the Parent and its subsidiaries, must not exceed 10% of the share capital. The subsidiaries do not hold 
own shares or shares in the Parent. 
 Other relevant information 
10.1. Stock market performance and shareholder returns 
All of the shares in REC, the Group's listed company, are quoted on the four Spanish stock exchanges and 
are traded through the Spanish automated quotation system. 
REC also forms part of the IBEX 35 index, of which it represented 1.96% at the end of 2019. 
At 31 December 2019, the share capital of REC amounted to Euros 270.5 million and was represented by 
541,080,000 shares with a par value of Euros 0.50 each, subscribed and fully paid.  
During the year REC's free float was 80%.

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At the date of the last shareholders' meeting – 22 March 2019 – the free float comprised 432,864,000 shares, 
of which an estimated 12% is held by non-controlling shareholders, 4% by Spanish institutional investors 
and 84% by foreign institutional investors, primarily in the United Kingdom and the United States. 
 
2019 was a good year in terms of stock market performance. It was also a peculiar year. While the main 
markets have rallied strongly, reaching record highs in the case of Wall Street, there has also been a gradual 
economic slowdown which, based on initial estimates, has resulted in 2019 being the year with the lowest 
growth in the past 10 years. According to the World Bank, the global economy grew by 2.4%, the lowest rate 
since the great recession in 2009. The reasons for this disconnection between markets and economy could 
be attributable to the steadfast support given by major worldwide banks to the markets. Monetary injections 
through debt repurchases, as well as interest rate cuts where possible, have been implemented by the 
monetary authorities over the last 12 months. Lastly, it is worth mentioning that trade disputes were eased 
during the last few months of the year, which helped to consolidate the gains accumulated throughout the 
period. 
The main US stock exchanges were up, the Dow Jones by 22.3% and the Nasdaq tech index by 35%, and all 
reached record highs during the year. It was also a good year for Asian stock markets, with the Japanese 
Nikkei 225 index up by 18.2% and the Chinese Shanghai index up by more than 22%, following a December 
rally after a trade agreement was reached with the USA. Lastly, European stock exchanges saw gains of 
around 25%, except for the British FTSE, possibly hampered by the uncertainty caused by Brexit, and the 
Spanish IBEX, ostensibly affected by the political instability in Spain. 
This conducive landscape is in contrast to the performance of REC’s share price, which dropped by 8% over 
the year. This atypical performance is perhaps largely due to the regulatory changes made to electricity 
transmission activity in Spain. The draft circular with new regulatory parameters published at the start of 
July caused the share price to fall sharply, hitting a year low of Euros 16.74 on 31 July. From then until 31 
December it recovered by over 7%. 
The market capitalisation of the Company at the end of 2019 was Euros 9,699 million.

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In total, 529.6 million shares were traded on official secondary markets in 2019, which is 0.98 times the 
Company's share capital. Cash transactions amounted to Euros 9,804.2 million. 
10.2. Dividend policy 
The dividends paid in 2019 amounted to Euros 530.8 million, 7% more than in 2018. 
The board of directors has proposed a dividend of Euros 1,0519 per share with a charge to 2019 profit, pending 
approval by the shareholders at their general meeting, representing an increase of 7% on the prior year. 
This is in line with the dividend policy set out in the Group’s 2014-2019 Strategic Plan, with growth at a rate 
of approximately 7%. This increase is considered as the average annual rate for the period on the basis of 
the total dividend approved with a charge to 2014. 
The dividend will be paid in two instalments – an interim dividend in January and a supplementary dividend 
halfway through the year following approval of the annual accounts by the shareholders at their general 
meeting. 
10.3. Credit rating 
On 21 May 2019 the credit rating agency Standard & Poor’s issued a new report maintaining the same rating 
and outlook. Following this announcement, REC and its subsidiary REE maintain long-term ratings of A- and 
short-term ratings of A-2, with a stable outlook. 
On 8 April and 6 June 2019 the credit rating agency Fitch Ratings gave the Company a long-term rating of A- 
with a stable outlook. Following this announcement, REC and REE maintain long-term ratings of A- and short-
term ratings of F1, with a stable outlook. 
10.4. Excellence 
Since 1999 the Group has applied the EFQM (European Foundation for Quality Management) excellence 
management model as a tool to improve management, and external assessments are performed periodically. 
In 2019 the Company retained its EFQM 500+ European Seal of Excellence, following the external assessment 
carried out in 2017, with a score of more than 700 points. 
In 2019 Red Eléctrica was the winner of first nationwide award for excellent, innovative and sustainable 
management, presented by Club Excelencia en Gestión, the EFQM’s representative in Spain. Red Eléctrica 
was chosen by the panel for its excellence in management and the Company’s sustainable and innovative 
management over time. Once again in 2019, Red Eléctrica was named “Ambassador of European Excellence” 
by Club Excelencia en Gestión, a title given to companies and entities which have a current EFQM 500+ 
European Seal of Excellence and have scored over 600 EFQM points in their assessment.  
In keeping with its commitment to excellence and quality, the Group has ISO 9001-certified quality 
management systems in its main subsidiaries (REE, REA, Hispasat) and the standard has been implemented 
and certified in the subsidiary REINCAN for the first time this year. 
2019 also saw the development of a groundbreaking project to implement and certify project-based 
management in the Chira-Soria hydroelectric pumping power plant project under ISO 10006 and 21500.

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 Non-financial Information Statement in compliance with Law 11/2018 of 28 
December 2018 
11.1. Description of the Group’s business model  
The Group has consolidated itself as a global operator of essential infrastructure, managing electricity 
transmission networks in Spain and South America, and telecommunications networks (fibre optics and 
satellites). 
Management and operation of domestic electricity infrastructure  
Construction and maintenance of power lines and electricity substations forming part of the transmission 
network (including international and inter-island interconnections) that match generation with consumption 
and operation in real-time in the Spanish electricity system, guaranteeing continuity of supply and the safe 
integration of renewable energy. 
It also includes the design and construction of storage infrastructure in the Canary Islands, which serves as 
a tool for the operation of the electricity system to improve the integration of renewable energy and the 
safety of supply on the islands. 
Management and operation of international electricity infrastructure  
Construction and operation of energy transmission infrastructure in Peru, Chile and foreseeably in Brazil, 
and provision of electricity infrastructure maintenance services in Peru. 
Telecommunications (fibre optics and satellites) 
Satellite communications services for video, data transmission and mobility services through 7 satellites in 
operation. Hispasat has a presence in 5 countries: Spain, Brazil, Mexico, Argentina and Colombia, and serves 
customers in more than 26 countries. 
Commercial operation of the excess fibre optic network capacity associated with both the electricity 
transmission network and the rail network, as well as technical spaces for storing telecommunications 
equipment in Spain. 
The Group is committed to innovation and technology, based on the acceleration of technological 
innovation, the generation of competitive advantages and business opportunities to turn the Group into a 
technological benchmark in the energy transition, the traceability and accessibility of information, as well 
as the provision of innovation and technological development services to third parties. 
The Group's business model creates value for all its stakeholders and for society as a whole. 
Commitment to sustainability 2030 
The Group has made a strategic commitment to long-term, enterprise-wide sustainability. In 2017, the board 
of directors approved the Group’s 2030 Sustainability Commitment. Through this commitment, the Group 
aims to achieve long-term continuity through a business model that is capable of responding to the 
challenges of the future and putting the principles set out in the Corporate Responsibility Policy into 
practice. 
The 2030 Sustainability Commitment is backed by the board of directors and the Group's management team, 
whose message is transmitted to the entire organisation with a view to encouraging a proactive attitude 
that incorporates sustainability into day-to-day decision making. It is worth noting the creation of the

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Sustainability Committee within the board of directors in 2018 as a result of the strategic importance of 
sustainability for the Group; the key role of the Sustainability Steering Committee and the Corporate Division 
for Sustainability and External Relations, which reinforce the involvement of the highest decision-making 
levels and the involvement of all areas of the organisation in the implementation, supervision and monitoring 
of the 2030 Sustainability Commitment. 
In May 2019, the board of directors approved the Group’s 2030 sustainability objectives, which lay out eleven 
proposals to measure compliance with the commitments established in the four sustainability priorities, 
focusing on those aspects that provide answers to the great global challenges on the horizon for 2030. The 
objectives, which are defined by the Sustainability Steering Committee and validated by the Sustainability 
Committee of the board of directors, are aligned with the priorities of the 2030 Sustainability Commitment 
and the Group's 2018-2022 Strategic Plan and the United Nations Sustainable Development Goals (SDGs). 
Sustainability priorities and objectives for 2030 of the Red Eléctrica Group  
DECARBONISATION OF THE ECONOMY 
Act as a proactive agent in the energy transition towards an emissions-free model, based on the electrification of the
economy and the efficient integration of renewable energy through a robust and better-connected network and the 
development and operation of energy storage systems.  
Objectives for 2030 
1. Reduce our GHG emissions by over 40%. 
 
2. Empower 100% of society to be actively involved in the energy transition process. 
 
3. Safely integrate 100% of the renewable energy available in the electricity system, 
minimising waste and accelerating progress towards meeting the energy transition 
objectives. 
 
RESPONSIBLE VALUE CHAIN 
Extend our responsibility commitment to all the links in the value chain, from our employees to our suppliers and cus-
tomers, by forging alliances, all underpinned by our model of good governance and integrity.  
Objectives for 
2030 
4. Drive change in our suppliers. 
 
5. Receive ESG financing in 2030. 
 
CONTRIBUTION TO THE DEVELOPMENT OF THE ENVIRONMENT 
Contribute to economic, environmental and social progress in the environment, by providing an essential service in a
secure and efficient way, fostering environmental conservation, enhancing people’s quality of life and social welfare and
involving communities in the development of our activities so as to generate mutual rewards that are tangible to that 
community.  
Objectives for 2030 
6. Benchmark in gender equality: parity in the management team by 2030. 
 
7. Benchmark in diversity: inclusion of collectives at risk of social and workplace 
exclusion. 
 
8. Have a net positive impact on the natural capital of the area surrounding our fa-
cilities.

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9. Fully eradicate the digital divide: 100% connection rate for people in the areas 
surrounding our facilities. 
 
ANTICIPATION AND ACTION FOR CHANGE 
Foster a corporate culture of innovation and flexibility that enables us to identify growth opportunities and tackle future
challenges by staying ahead of and adapting to global trends and to the regulatory environment emerging from the new
energy model.  
Objectives for 
2030 
10. Become a benchmark technological player, pushing at least 120 technological 
innovation initiatives that contribute to the energy transition and telecommunica-
tions, making the world a more connected, intelligent and sustainable place. 
 
11. Become a leading company in circular economy. 
 
 
The Group's main objective is to achieve a lasting and trusting relationship with its stakeholders.  
The Group's stakeholder management model incorporates the requirements of regulations and benchmark 
standards in the field, such as AA1000, IQNet SR10, ISO26000 or Global Reporting Initiative. This model 
ensures adequate management of the significant impact of the Group's activities and services on its 
stakeholders, avoiding the risk of not rapidly identifying any problem that may affect the relationship with 
them.  
The Group classifies its stakeholders into the following categories: investors, shareholders and business 
partners, regulatory bodies and the administration, customers, people, suppliers, surrounding environment, 
opinion makers, business sector and professional associations and innovation agents.  
 
MATERIALITY ANALYSIS 
In 2019, with a view to advancing the 2030 Sustainability Commitment, the Group updated its Materiality 
Study in accordance with the Global Reporting Initiative (GRI) standards for the purpose of identifying 
relevant issues. This was achieved in stages, as follows:  
1. 
Issue identification. A total of 16 relevant issues were identified in the analysis of the sustainability 
context. They include: trend analysis, industry benchmarking, strategic interviews with the senior 
management team and external stakeholders, key technical personnel at the company and an anal-
ysis of internal information. 
2. Issue prioritisation. Internal and external assessment of the criticality of the identified issues for 
the achievement of long-term objectives and thus for long-term continuity. The prioritisation matrix 
provides a dual analysis of the issues, revealing both their internal importance, assigned by the top-
level managers and key technical personnel who took part in the analysis of the sustainability con-
text, and their external importance, based on the value assigned by the external stakeholders who 
were consulted. 
3. Issue evaluation and validation. Cross-organisational analysis of the results of the issue identifica-
tion and issue prioritisation phases. This stage consisted of an evaluation of the results of the pre-
vious stages and identified the opportunities associated with each relevant issue, as well as its im-
pact on the 2018-2022 Strategic Plan and any connection with the Sustainable Development Goals.

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Relevant issue prioritisation matrix 
 
11.2. Information regarding environmental issues 
The Group’s commitment to the environment comes from management and is based on environmental 
policy, which includes explicit commitment to the prevention of pollution and precautionary principles. To 
bring about the continuous improvement of environmental performance, Red Eléctrica has implemented an 
Environmental Management System, certified according to ISO 14001 and EMAS standards. The involvement 
of all organisational units and the commitment of all the people who work in the Group are critical for the 
development of this system. 
It should be noted that the Group’s ordinary expenses for the protection and improvement of the 
environment came to Euros 26.1 million.  
Specifically, in the case of the domestic management and operation of electricity infrastructure business, 
ordinary expenses for the protection and improvement of the environment exceeded Euros 25 million due 
to the implementation of environmental initiatives aimed at protecting biodiversity, fire prevention, 
landscape integration, climate change, and prevention of pollution. The amount allocated to environmental 
issues associated with investment projects was Euros 1.7 million.  
In the aforementioned domestic electricity infrastructure operation and management business, the 
environmental commitment has three primary vectors: Environmental management and integration of the 
electricity facilities into the environment, combating climate change and biodiversity protection. 
 Environmental management and integration of electricity facilities into the environment. 
The main route to make facilities compatible with the environment is the selection of routes and sites so 
that the environmental impact is as low as possible. Additionally, the application of preventive and corrective 
measures and the monitoring of strict environmental criteria, make it possible for potential effects on the 
environment to be reduced significantly. The best tool to guarantee this process is an Environmental Impact 
Assessment. By law, most of Red Eléctrica’s projects are subject to this procedure.

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The measures applied notably include those related to pollution prevention. In this respect, the main 
initiatives undertaken are those aimed at minimising the risk of land or groundwater being polluted by 
hydrocarbon leaks or spillages. Actions aimed at mitigating the noise generated by certain electrical 
substations and reducing light pollution are also noteworthy. To address the latter issue, over the last three 
years the Company has worked on implementing the necessary measures to enable facilities to be shut down 
at night, thereby limiting light pollution as much as possible while also achieving significant energy savings.  
Activities and projects designed to integrate the facilities into the surrounding environment are also 
particularly relevant, as are those aimed at protecting the socio-economic environment, primarily those 
related to the conservation of archaeological heritage.  
Lastly, we should highlight the importance for Red Eléctrica of the work and significant progress in the 
sustainable use of resources. In 2019, the Company announced its sustainability goals for 2030, which 
include the aspiration to be a leading company in the field of circular economy. This year, a circular economy 
roadmap has been designed, which contains the goals to be achieved and the main actions to be carried out 
to achieve them. These actions fall within four strategic lines: process optimisation (which includes, inter 
alia, measures aimed at minimising water consumption), zero waste (the main objective of which is for none 
of the Group’s waste to end up in a landfill); alliances for supplies (which includes actions related to the eco-
design of equipment and facilities) and work with other agents (focused on collaboration with key players in 
the search for solutions related to innovation and promotion of the circular economy).  
 Climate change 
The Group, through its activities in the electricity sector, is a key and proactive agent in the energy transition 
towards a zero emissions model, the main elements of which should be: the electrification of the economy, 
the full integration of renewable energy into the energy mix and efficiency, while always ensuring the safety 
of the supply. Taking on this role, in 2011 the Group decided to formalise a voluntary commitment in the fight 
against climate change, which materialised into a Climate Change Action Plan, the latest version of which 
was approved in 2015. 
This plan includes the main objectives for the 2020 and 2030 time horizons, as well as the main actions 
needed to achieve them. 
As a general objective, the Group is committed to reducing Scope 1 and 2 emissions per MWh transported by 
40% in 2030 with respect to 2015. This objective was approved in 2018 by the Science Based Targets (SBTi) 
initiative and is equivalent to a net reduction of Scope 1 and 2 emissions of 30% by 2030.  
The plan covers the following lines of action: 
• 
Contribution to a low-emissions energy model, taking the necessary actions to achieve European 
objectives for 2020 and 2030:  
o Ongoing investor involvement to develop a robust, intelligent and inter-connected transmission 
network that enables the electrification and connection of new renewable energy.  
o Maximum integration of renewable energy through optimisation of the operation of the 
electricity system and the fostering of storage systems. 
o Progress in the efficient management of the network by applying new demand management 
measures, incorporating new elements such as electric vehicles and the driving of 
technological innovation.  
• 
Reduction in greenhouse gas emissions resulting from the Company’s activities. The main measures 
implemented apply to the following areas of action:  
o Reduction in SF6 emissions.

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o Reduction in electricity consumption (efficiency measures) and the associated emissions 
(acquisition of 100% renewable energy).  
o Sustainable mobility: reduction in emissions associated with the Group’s vehicles, business 
trips and employee travel. 
o Involvement of the supply chain in the Group’s commitments. 
o Progress in the incorporation of the criteria of efficiency and saving of materials in the design 
of facilities. 
o Emissions offsetting, mainly through the Red Eléctrica Forest Project. 
• 
Positioning and disclosure: dissemination of knowledge of the electricity system and demand 
management measures as well as the promotion of other energy efficiency measures. 
• 
Adaptation: the Group regularly identifies and evaluates the risks and opportunities arising from 
climate change and applies various measures defined within the framework of this analysis. In 2018, 
and particularly in 2019, work began on the implementation of the recommendations of the Task 
Force on Climate-related Financial Disclosures (TCFD), which gave rise to a thorough review of the 
assessment, considering different scenarios and intensifying the economic quantification of risks 
and opportunities identified. Details of the TCFD recommendations are provided in note 4 on risk 
management in the consolidated directors’ report. 
 Protecting biodiversity 
The protection and conservation of biodiversity has always been the Group’s priority in environmental 
management. The Group has a specific commitment for the management of biodiversity (revised in 2017) 
and a multi-year Action Plan (2017-2021), which lists the main actions to be carried out in this period.  
The main effects on biodiversity are associated with the presence of the facilities in the area and the work 
carried out to build them. Most notable is the risk of birds colliding with earth wires in power lines and the 
effect of firebreaks on vegetation.  
Biodiversity management is carried out taking into account the impact mitigation hierarchy. Avoiding areas 
that are protected or highly biodiverse is a fundamental criterion when deciding on the location of facilities 
(in energy transmission infrastructure, only 15.6% of lines and 5.7% of substations are located in protected 
areas). The second step is to minimise possible affects and is achieved through the application of the 
corresponding preventive and corrective measures, including the restoration of habitats wherever possible. 
Lastly, different environmental improvement actions and conservation projects are carried out to offset any 
impacts. 
Notable actions related to the following areas:  
• 
Protection of birdlife, the primary objective being to minimise the risk of birds colliding with ground 
wires, as mentioned above. A plan to use bird-saving devices in sections with the greatest potential 
impact for birds (more than 750 km of lines) has been devised and is due to be completed in 2023. 
In 2019, the proportion of critical priority areas with signalling was 60.7%. 
• 
Prevention of forest fires, through appropriate design and maintenance of safety corridors and the 
joint efforts of the pertinent authorities in this field. There are currently 10 fire prevention 
agreements in place and three are being renewed. These agreements have an overall associated 
budget of more than Euros 1 million for 4 years, which is allocated to cleaning up mountains, 
acquiring fire extinguishers and fire-fighting equipment, training and raising awareness. 
• 
Implementation of conservation projects in cooperation with the government, NGOs and other 
bodies, notably including projects relating to birdlife conservation or those devised for the

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restoration of degraded areas. The latter include the “REE Marine Forest” project to restore 
posidonia oceanica seagrass, and the “Red Eléctrica Forest”, with an investment of Euros 2.1 million, 
through which more than 842 hectares have been restored since 2009. 
In 2019, as part of its commitment to sustainability, the Group announced its goal of achieving a net positive 
impact on the natural capital of the area surrounding its facilities by 2030.  
To this end, the Group has defined an initial methodology to study and assess ecosystem services, enabling 
it to further the incorporation of natural capital as a concept within management and thus make progress in 
the pursuit of this goal. Furthermore, it participates actively in a sector work group that is designing 
guidelines to facilitate the calculation and comparability of the results achieved across the different 
initiatives and projects of this sort within the energy sector. 
 
Environmental indicators of a non-financial nature pertaining to the management and operation of 
domestic electricity infrastructure 
Non-financial indicators  
2018 
2019 
∆% 
Direct greenhouse gas emissions (scope 1) (tCO2 eq.) 
39,272 
23,614 
-39.9 
Indirect greenhouse gas emissions (scope 2) (tCO2 eq.) (1) 
1,010,754 
781,452 
-22.7 
Power consumption (MWh) (2) 
14,584 
14,051 
-3.6 
Fuel consumption (MWh) (3) 
6,600,714  
6,853,984 
3.8 
Water consumption (m3) (4) 
22,566 
20,347 
-9.8 
Hazardous waste (kg) (5) 
3,036,874 
547,100 
-82.0 
Non-hazardous waste (kg) (5) 
1,521,150 
718,987 
-52.7 
Number of environmental accidents (6) 
5 
5 
0 
Lines marked with bird-saving devices in critical priority areas (accumulated 
kilometres at the end of each year). 
375.7 (51.2% 
 of the total to mark) 
459.7 (60.72% 
 of the total to mark) 
22.3 
 
(1)  Scope 2 emissions in 2018 have been updated with respect to those published in the 2018 report as in November 2019 there was a significant 
update in the information on losses in the transmission network. This information is obtained from the Electricity Meter Communication System 
(SIMEL), which receives the information recorded by all meters in Spain. For various reasons, this information is adjusted and updated throughout 
the year. Regulations establish a deadline of 11 months to finalise the definitive information  
(2) All of the energy supply contracts managed by the company are for green energy or offer guarantees of the renewable origin of the energy, which 
represents 87% of the electricity consumed in 2019 (the remaining consumption corresponds to workplaces that are leased or that do not have 
electrical hook-ups and therefore receive their supply from the transmission network). 
(3) Fuel consumption of fleet vehicles and electrical generators.  
(4) The data has a coverage of 82% in terms of personnel, including collaborators. The water consumed comes from the municipal supply network 
(79.5%), wells (17.65%), cistern (2.9%). In some centres there are reservoirs for accumulation of rainwater for sanitary use, fire prevention and 
irrigation. The reservoirs do not have mechanisms to record the stored water so it is not possible to calculate the percentage usage of rainwater.  
(5) 68% of all the waste generated (hazardous and non-hazardous) has been recycled (this generic category includes reuse, recycling, composting, 
anaerobic digestion and regeneration). 
(6) Significant accidents are considered to be those categorised as significant, severe or major in the internal classification (level 3 accidents and 
above on a scale of 1 to 5). Does not include collisions. The 2018 information has been corrected with respect to that published in the previous report, 
as it now includes an accident that occurred subsequent to the publication of the annual reports.  
11.3. Information on social and employee-related issues 
Human team 
During 2019, in relation to the management and operation of electricity infrastructure and 
telecommunications (fibre optics) businesses, work continued on the objectives set out in the Human 
Resources Master Plan linked to the Strategic Plan. The Impúlsate project, which was launched in 2018 and

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is due to finish in 2020, rolled out the majority of its functionality in 2019, boosting the transformation of the 
people management function in order to add value to the Group as a strategic lever for change and to help 
achieve its objectives. 
Various key actions were implemented in 2019, such as the change of organisational model, the roll out of 
the challenge-focused management model and the definition of a new technological organisation (RETIT) 
and the actions required to manage the cultural changes and digital transformation. 
A key project to transform the Group’s way of working is the Imagina project, which continues to progress in 
2019 through its various projects: the renovation of spaces, the implementation of a digital mailroom, the 
extension of the external flexibility pilot (distance working and the digital training of our employees through 
new platforms), among others. 
In this context, in keeping with its strategic objectives, the Group has encouraged the adaptation of its 
human capital to orient its companies towards greater efficiency and digitisation. 
 Employment 
At the end of 2019, the Group’s workforce consisted of 2,056 professionals. Its commitment to stable 
employment is reflected in the high levels of permanent employment contracts (nearly 100%), prioritising 
employability and functional mobility as levers for growth and professional development. 
Structure of the workforce by country where the Group is present 
2019 
  
Female   
  
Male   
Total 
Spain 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
34 
13 
0 
47 
45 
139 
Technicians 
38 
244 
55 
56 
847 
395 
1,635 
Administrative personnel 
0 
43 
60 
0 
6 
24 
133 
Total 
38 
321 
128 
56 
900 
464 
1,907 
 
2019 
  
Female   
  
Male   
Total 
Peru 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
0 
0 
0 
4 
1 
5 
Technicians 
1 
12 
1 
3 
47 
5 
69 
Administrative personnel 
0 
3 
1 
0 
0 
0 
4 
Total 
1 
15 
2 
3 
51 
6 
78 
 
2019 
  
Female   
  
Male   
Total 
Chile 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
0 
0 
0 
3 
0 
3 
Technicians 
0 
2 
0 
2 
7 
1 
12 
Administrative personnel 
0 
2 
0 
0 
0 
0 
2 
Total 
0 
4 
0 
2 
10 
1 
17

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2019 
  
Female   
  
Male   
Total 
Luxembourg 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
0 
0 
0 
0 
0 
0 
Technicians 
0 
0 
1 
0 
0 
0 
0 
Administrative personnel 
0 
0 
0 
0 
0 
0 
0 
Total 
0 
0 
1 
0 
0 
0 
1 
 
2019 
  
Female   
  
Male   
Total 
Argentina 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
0 
0 
0 
0 
0 
0 
Technicians 
0 
1 
0 
0 
1 
0 
2 
Administrative personnel 
0 
0 
0 
0 
0 
0 
0 
Total 
0 
1 
0 
0 
1 
0 
2 
 
2019 
  
Female   
  
Male   
Total 
Brazil 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
0 
0 
0 
1 
0 
1 
Technicians 
13 
5 
1 
6 
14 
8 
47 
Administrative personnel 
0 
1 
1 
0 
0 
0 
2 
Total 
13 
6 
2 
6 
15 
8 
50 
 
2019 
  
Female   
  
Male   
Total 
Colombia 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
0 
0 
0 
0 
0 
0 
Technicians 
0 
0 
0 
0 
1 
0 
1 
Administrative personnel 
0 
0 
0 
0 
0 
0 
0 
Total 
0 
0 
0 
0 
1 
0 
1 
The information for 2018 is as follows: 
2018 
  
Female   
  
Male   
Total 
Spain 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
24 
12 
0 
36 
53 
125 
Technicians 
20 
213 
57 
35 
755 
398 
1,478 
Administrative personnel 
0 
26 
63 
0 
2 
27 
118 
Total 
20 
263 
132 
35 
793 
478 
1,721

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2018 
  
Female   
  
Male   
Total 
Peru 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
0 
0 
0 
3 
0 
3 
Technicians 
1 
8 
1 
9 
40 
4 
63 
Administrative personnel 
0 
3 
1 
0 
0 
0 
4 
Total 
1 
11 
2 
9 
43 
4 
70 
 
2018 
  
Female   
  
Male   
Total 
Chile 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
0 
0 
0 
0 
0 
0 
Technicians 
1 
0 
0 
0 
5 
0 
6 
Administrative personnel 
0 
1 
0 
0 
0 
0 
1 
Total 
1 
1 
0 
0 
5 
0 
7 
 
2018 
  
Female   
  
Male   
Total 
Luxembourg 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
0 
0 
0 
0 
0 
0 
Technicians 
0 
1 
0 
0 
0 
0 
1 
Administrative personnel 
0 
0 
0 
0 
0 
0 
0 
Total 
0 
1 
0 
0 
0 
0 
1 
 
Following is a total for 2018 and 2019 of the information on the Group’s workforce by age, gender and 
professional category: 
By age 
2018 
2019 
Under 30 
66 
119 
30 to 50 
1,117 
1,325 
Over 50 
616 
612 
Total 
1,799 
2,056 
 
By gender 
2018 
2019 
Female 
432 
532 
Male 
1,367 
1,524 
Total 
1,799 
2,056

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By professional category 
2018 
2019 
Management team 
128 
148 
Technicians 
1,548 
1,767 
Administrative personnel 
123 
141 
Total 
1,799 
2,056 
 
Workforce by contract type 
2019 
  
Female   
  
Male   
Total 
Total contracts  
Permanent 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
34 
13 
0 
55 
46 
148 
Technicians  
33 
259 
58 
46 
900 
407 
1,703 
Administrative per-
sonnel  
0 
46 
62 
0 
6 
24 
138 
TOTAL 
33 
339 
133 
46 
961 
477 
1,989 
 
 
2019 
  
Female   
  
Male   
Total 
Total temporary 
contracts 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
0 
0 
0 
0 
0 
0 
Technicians  
19 
5 
0 
21 
17 
2 
64 
Administrative per-
sonnel  
0 
3 
0 
0 
0 
0 
3 
TOTAL 
19 
8 
0 
21 
17 
2 
67 
 
 
 
The information for 2018 is as follows: 
2018 
  
Female   
  
Male   
Total 
 
 
Total contracts 
 Permanent 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
24 
12 
0 
39 
53 
128 
Technicians 
15 
221 
58 
37 
794 
401 
1,526 
Administrative per-
sonnel 
0 
28 
64 
0 
2 
27 
121 
Total 
15 
273 
134 
37 
835 
481 
1,775

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2018 
  
Female   
  
Male   
Total 
Total temporary 
contracts 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
0 
0 
0 
0 
0 
0 
Technicians 
7 
1 
0 
7 
6 
1 
22 
Administrative per-
sonnel 
0 
2 
0 
0 
0 
0 
2 
Total 
7 
3 
0 
7 
6 
1 
24 
 
The averages by type of contract in 2019 are as follows: 
Average total by type of contract 
Total permanent contracts 
1,790 
Total temporary contracts 
67 
Total 
1,857 
 
Following are details by age, gender and professional category: 
  
Female   
  
Male   
Total 
Average permanent contracts 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0.0 
28.6 
11.0 
0.0 
49.8 
49.8 
139.2 
Technicians  
28.6 
222.4 
49.7 
40.9 
814.3 
375.4 
1,531.4 
Administrative personnel  
0.0 
39.6 
53.1 
0.0 
5.3 
21.3 
119.4 
TOTAL 
28.6 
290.7 
113.7 
40.9 
869.5 
446.6 
1,790.0 
 
  
Female   
  
Male   
Total 
Average temporary contracts 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
Technicians 
17.7 
4.2 
0.0 
23.0 
17.8 
1.8 
64.5 
Administrative personnel 
0.0 
2.5 
0.0 
0.0 
0.0 
0.0 
2.5 
TOTAL 
17.7 
6.7 
0.0 
23.0 
17.8 
1.8 
67.0 
 
 
In 2019, the Group’s workforce does not include any part-time personnel.

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Details of dismissals for the year  
2019 
  
Female   
  
Male   
Total 
Dismissals (1) 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
0 
0 
0 
1 
1 
2 
Technicians 
0 
0 
0 
0 
2 
1 
3 
Administrative per-
sonnel 
0 
1 
1 
0 
0 
0 
2 
Total 
0 
1 
1 
0 
3 
2 
7 
(1) Information pertaining to Group employees 
 
Information on dismissals for 2018: 
2018 
  
Female   
  
Male   
Total 
Dismissals (1) 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
0 
0 
0 
0 
2 
2 
Technicians 
0 
1 
0 
0 
4 
1 
6 
Administrative per-
sonnel 
0 
0 
2 
0 
0 
0 
2 
Total 
0 
1 
2 
0 
4 
3 
10 
(1) Information pertaining to Group employees 
 
Remuneration in the Red Eléctrica Group 
The Group is working to consolidate a remuneration model across every company in the Group, which 
reflects the following common principles: 
• 
Internal fairness and external competitiveness. 
• 
Consistency with the organisational and development model.  
• 
Opportunity for salary progression. 
• 
Differentiating recognition of superior performance. 
• 
Salary equality between men and women.  
 
Details of average remuneration of the workforce for 2019 (in Euros):

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Red Eléctrica Corporación and Subsidiaries  
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Average total sal-
ary for 2019 
  
Female   
  
Male   
Average 
total for 
women 
Average 
total for 
men 
Average 
total  
 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
Management team 
0 
124,330 
167,973 
0 
133,285 
166,863 
137,330 
150,604 
146,211 
Technicians 
29,847 
54,443 
63,943 
32,072 
52,442 
65,582 
52,649 
55,604 
54,980 
Administrative per-
sonnel 
0 
36,930 
43,639 
0 
36,306 
44,131 
40,919 
42,364 
41,234 
Total 
29,847 
58,882 
64,780 
32,072 
56,171 
74,531 
57,692 
61,267 
60,342 
 
Following is the information for 2018: 
Average total sal-
ary for 2018 
  
Female   
  
Male   
Average 
total for 
women 
Average 
total for 
men 
  
Average 
total  
Red Eléctrica 
Group in Spain (1) 
Under 30 
30 to 50 
Over 50 
Under 30 
30 to 50 
Over 50 
  
Management team 
0 
117,648 
157,195 
0 
124,630 
154,929 
129,732 
141,695 
138,193 
Technicians 
39,182 
54,964 
62,225 
40,704 
51,303 
64,360 
55,316 
55,183 
55,209 
Administrative per-
sonnel 
0 
37,055 
42,984 
0 
35,314 
43,198 
40,919 
41,567 
41,078 
Total 
39,182 
58,604 
61,631 
40,704 
54,580 
73,121 
58,684 
60,652 
60,177 
 (1) Figures from REE+REC+REINCAN+REI+REINTEL 
 
The average salary by age for 2019 is Euros 31,100 for employees under 30, Euros 56,881 for employees aged 
30 to 50 and Euros 72,412 for employees aged over 50. 
The Group therefore continues to make progress with the “total remuneration” model defined in 2017 that 
consists of different elements (economic, financial, intangible and emotional), which enables and supports 
new ways of working and the organisational and cultural transformation of the Group. This approach includes 
recognition programmes linked to the development of innovative and efficient ideas as well as revenue 
generation in order to encourage the participation of all of the Group’s professionals. 
In 2019, the Group carried out a study to quantify and analyse the wage gap in order to identify and quantify 
it by gender and to establish action plans to remedy the situation where necessary.  
By professional category, the ratio of the salary for men compared to women (average salary for men / 
average salary for women), is as follows: 
Category 
2018 (1) 
2019  
Management team 
1.06 
1.1 
Technicians 
0.95 
1.06 
Administrative personnel 
1 
1.04 
Total  
0.99 
1.06 
(1) Figures from REE+REC

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The average remuneration of the members of the board of directors, including variable remuneration and 
allowances, according to note 24 of the consolidated annual accounts of the Group, is as follows: 
Thousands of Euros 
2019 
2018 
Average remuneration for men (*) 
263.6 
256.3 
Average remuneration for women 
183.4 
152 
(*) This includes the Chairman of the Board and the CEO. Excluding these roles, the average remuneration for men would be Euros 149.2 
thousand. 
 
Additionally, as stated in the notes to the consolidated annual accounts, in 2019 the CEO was paid 
compensation totalling Euros 818 thousand. 
In 2018 the outgoing Chairman was paid compensation accrued in 2016 totalling Euros 718 thousand. 
With regard to senior management, according to note 25 of the consolidated annual accounts of the Group, 
remuneration for 2019 totalled Euros 664 thousand. The difference in the average salary between men and 
women is less than 3%. 
Lastly, it should be noted that the total amount of contributions to the Group’s pension plan in 2018 and 2019 
was as follows: 
Thousands of Euros 
2019 
2018 
Male 
1,806 
1,606 
Female 
484 
427 
Total contribution 
2,290 
2,033 
Implementation of workplace disconnection policies 
Article 88, the Right to Digital Disconnection from the Working Environment, of Organic Law 3/2018 of 5 
December 2018 on personal data protection and digital rights, includes an obligation for companies to meet 
with employees’ representatives and draft an internal policy for employees (including those in management 
positions) that defines how this right to disconnect can be exercised and the actions taken to train 
employees and raise awareness about the reasonable use of technology to prevent the risk of IT fatigue.  
Furthermore, according to this law, the right to digital disconnection must also be upheld in cases of partial 
or total remote working, as well as in employees’ homes with regard to the use of technology tools for work 
purposes.  
The Group is currently working to comply with the requirements of this law. 
 Organisation of working hours 
The actual effective working day established for employees complies with legal standards of minimum 
required rights and with the conventional framework applicable at the corresponding Group company.  
Absenteeism hours  
The number of working hours lost due to common illness or occupational accident are shown in the table 
below:

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In Peru, the number of hours lost due to common illness was 2,031, while in Chile it was 167 hours. 
In the Group, the number of hours lost due to common illness was 1,179, with zero hours lost due to occupational accidents (calculation performed 
using an annual base extrapolated to the period from 1 October to 31 December). 
Hours of absence due to occupational accidents included occupational accidents + commuting accidents  
Hours lost due to common illness: Sum of days of common temporary disability + Illness < 3 days 
Hours lost due to health and safety: Sum of days of common temporary disability + Illness < 3 days + commuting accidents 
 
The information for 2018 is as follows: 
2018 
Spain (1) 
Male 
Female 
TOTAL 
Hours lost due to occupational accidents 
2,839 
458 
3,297 
Hours lost due to common illness 
48,521 
29,505 
78,026 
Hours lost due to health and safety 
51,360 
29,963 
81,323 
 
(1) REE+REC+REI+REINTEL+REINCAN 
  
Hours of absence due to occupational accidents included occupational accidents + commuting accidents  
Hours lost due to common illness: Sum of days of common temporary disability + Illness < 3 days 
Hours lost due to health and safety: Sum of days of common temporary disability + Illness < 3 days + commuting accidents 
Management of work-life balance 
Regarding the domestic electricity infrastructure operation and management and Telecommunications 
(fibre optics) businesses, following the approval in 2018 of the third Comprehensive Work-Life Balance Plan, 
2019 has been characterised by the roll out of objectives defined for the year. It is worth noting the 
participation of the Group in the Observatory for the Development of Work-Life Balance and Co-
responsibility, led by ICADE-ICAI University, the extension of a flexible working culture or the implementation 
of a support service for dependent family members. 
This management model is one of the fundamental pillars of the Healthy Company model and the Diversity 
model and includes over 70 work-life balance measures, structured into different blocks: 
1. Leadership and management styles 
2. Quality of employment 
3. Flexibility of time and location 
4. Family support 
5. Personal and professional development 
6. Equal opportunities 
 Health and Safety 
The Group has a strategy and a specific action plan that promotes best practices in relation to occupational 
risk during activities and work carried out at its facilities. The objective is to go beyond mere legal 
2019 
 
Male 
Female 
TOTAL 
Hours lost due to occupational accidents 
2,371 
650 
3,021 
Hours lost due to common illness 
59,025 
32,282 
91,307 
Hours lost due to health and safety 
61,396 
32,932 
94,328

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compliance, by training, informing and raising awareness about the obligations and responsibilities that 
exist and to commit the whole Group to this goal. 
To minimise the risks associated with construction and maintenance tasks at electricity facilities, the Group 
places special emphasis on training, awareness, consultation and participation (through the Health & Safety 
Committee, internal audits and working groups), improving safe conduct and the safety measures employed 
while work is being carried out by internal and external (contractors) personnel. 
With regards to risk prevention, the Group monitors higher risk tasks and activities on an ongoing basis by 
means of safety inspection programs, which are essential to achieving the high levels of safety required by 
the Group. Accordingly, in 2019 nearly 11,000 safety inspections were carried out on works at facilities, with 
incidents having been detected in 13.75% of cases. As a result of all the activities performed to control and 
monitor works, over 2,200 corrective actions were required, of which over 93% have been resolved.  
In order to raise awareness about occupational risk prevention among its team, 2019 saw the continued 
development and implementation of the new skills-based training management model depending on the 
activity being carried out, which encourages cross-functional training in this area and ensures that people 
will improve their health and safety skills regardless of their role. 
With the aim of improving the safety conditions in construction and maintenance work, a series of actions 
aimed at reducing accidents during the works execution phases has been developed in recent years.  
Combining this “zero accidents” objective to reduce accidents with the great digital transformation that is 
taking place in society, during 2019 the Group established objectives to seek out and analyse new 
technologies that improve, eliminate and minimise the hazardous situations that arise during the 
performance of works.  
Also during 2019, the supplier evaluation system has been implemented and improved, with the aim of 
improving the safety results in the works execution phase, assisting suppliers in implementing the best 
practices in prevention, focusing on higher risk activities. 
In 2019, the key accident rates for Group employees were 4.13 (frequency rate) and 0.14 (severity index). 
The global severity index, counting own personnel and Group suppliers, was 0.28, which represents a 
significant reduction compared to the previous year (0.92). 
Workplace accidents and occupational illnesses 
The Group monitors the health of its employees on an ongoing basis through its in-house medical service, 
which is responsible for checking employees’ health through medical examinations and consultations. No 
incidents or risks of specific illnesses associated with the professional activities carried out or related to 
the workplace were identified thanks to the preventive measures applied.

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2018 (1) 
 
 
2019 
 
Red Eléctrica Group 
Male 
Female 
Total 
Male 
Female 
Total 
Accidents with leave 
8 
1 
9 
10 
3 
13 
Fatal accidents 
0 
0 
0 
0 
0 
0 
Work days lost due to accidents (2) 
333 
19 
352 
324 
109 
433 
Accident frequency index 
3.62 
1.42 
3.08 
4.28 
3.69 
4.13 
Accident severity index 
0.15 
0.03 
0.12 
0.14 
0.13 
0.14 
 
(1) 2018, only entities in Spain. 
(2) The calculation is based on 6,000 working days per fatal accident and 4,500 days for total permanent disability. 
Serious accident: Those classified as serious by the physician that issues the medical certificate.  
Frequency rate: Number of work-related accidents resulting in leave per million hours worked. 
Severity index: number of working days lost for work-related accidents + incapacity scale, per thousand hours worked.  
Note 1. Accidents are recorded based on Spanish legislation and according to the Red Eléctrica management system certified under OHSAS 18001. 
In addition, it should be noted that there were no occupational illnesses in either 2019 or 2018. 
In the specific area of health and health promotion, in addition to the basic actions of individual health 
monitoring, different campaigns aimed at guaranteeing physical, psychological and social well-being have 
been rolled out with the aim of improving people’s overall well-being: cancer prevention initiatives, nutrition 
consultations, fitness consultations, physiotherapy consultations, access to yoga classes, Pilates and sports 
activities, among others. These individual actions will be complemented by talks and awareness-raising 
sessions on active ageing and stroke prevention. 
The set of programmes and actions deployed in recent years has received external validation in the form of 
the 12th edition of the NAOS Strategy Award granted by the Ministry of Health and the Spanish Agency for 
Consumption, Food Safety and Nutrition (AECOSAN), with a view to acknowledging interventions or other 
initiatives that contribute to the prevention of obesity by promoting healthy eating and/or regular physical 
activity. 
 Social relationships 
During the last four months of 2019, a new edition of the climate study was carried out as a continuation of 
the previous survey conducted in 2017 in order to maintain the traceability of the results. In addition, 
information related to strategic aspects such as innovation or cultural and digital transformation has been 
included. 
Results will be communicated in 2020, both at Group level and organisational unit level, and the different 
improvement plans will be defined and implemented.  
Employees covered by a collective bargaining agreement 
The Group guarantees its employees the right to trade union membership, association and collective 
bargaining within the framework of the provisions of the International Labour Organisation, existing labour 
laws and the applicable collective bargaining agreement.  
 
Employees covered by a collective bargaining 
agreement 
2018 
2019 
Employees in Spain 
93% 
91% 
Employees in Brazil (1) 
-  
96% 
(1) 
In 2018 there were no Group employees in Brazil

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During the first half of 2019, negotiations continued regarding the 11th Red Eléctrica de España Collective 
Bargaining Agreement started in 2018. This negotiation concluded with an agreement, and the 11th 
Agreement came into force on 21 June 2019.  
Consequently, relations with employees’ representatives were defined by the negotiation of a new 
agreement through the Negotiating Committee created for this purpose.  
During the second half of 2019, various meetings were held by Red Eléctrica de España’s Intercentre 
Committee and other committees in which employees’ representatives are involved. 
Summary of the collective bargaining agreements in the area of health and safety 
Red Eléctrica has an occupational health and safety committee whose composition and functions are set 
out in Chapter 7 of the 11th Collective Bargaining Agreement. 
This committee is a collegiate body with equal representation intended to provide regular and periodic 
consultation regarding the company’s occupational health and safety actions. The committee consists of six 
representatives nominated by the company and six health and safety delegates chosen from among the 
employees’ representatives, who represent 100% of the employees. Specialists from the company’s health 
and safety service also attend the committee’s meetings. 
The committee meets every quarter (in accordance with Occupational Risk Prevention Law 31/1995) although 
it may also meet at the request of any of the parties. In 2019, the committee met four times in accordance 
with its objectives. 
These meetings serve to monitor all health and safety activities, any new applicable legislation, the reviews 
of processes and internal regulations, as well as analysing and tracking the results and the occupational 
health & safety programmes and monitoring safety equipment and materials. The minutes of these meetings 
are available to all employees under a dedicated section of the miRED corporate intranet. This committee 
also receives the results of the internal and external audits that are carried out and any improvement actions 
that are implemented. 
 Training 
In 2019, the Red Eléctrica Group's Campus was the main hub of Learning and Professional Development 
within the Red Eléctrica Group.  
The Group's transformation continues to be promoted through the new leadership approach and the 
development of employees’ capacities through specific programmes developed by the three institutions 
(business knowledge and technical training, strategy and leadership and transformation and innovation). 
As a result of the new “push yourself” (Impúlsate) philosophy, a high component of self-development is 
encouraged in training, with the launch of programmes and learning spaces where it is the employees 
themselves who decide how and when to participate based on their own interests. This new direction has 
translated into the new “Pharos” training catalogue composed of more than 200 online courses on different 
technical, management and skills subjects, as part of the “Digital by Campus” programme aimed at the 
acquisition of skills and knowledge related to digital transformation and the “Self Development Ecosystem” 
designed to improve the personal and professional skills of all employees.  
143,330 hours of training have been provided, equivalent to 72 hours per employee and an investment of EUR 
4,306.33 per person.

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Training hours by professional category and gender 
 
     2018 
     2019 
Red Eléctrica Group 
Male 
Female 
Total 
Male 
Women 
Total 
Management team 
5,465 
2,510 
7,975 
4,763 
2,351 
7,114 
Technicians 
93,991 
27,267 
121,258 
108,452 
24,046 
132,498 
Administrative person-
nel 
787 
3,732 
4,519 
635 
3,083 
3,718 
Total 
100,243 
33,509 
133,752 
113,850 
29,480 
143,330 
 
All employees are continuously assessed. The new appraisal model was launched in 2019 and effectively 
separates the evaluation of an employee’s contribution in order to increase objectivity and to help align 
employees with the Group’s strategy and encourage a culture of development and recognition. 
In 2019 the Group consolidated the implementation of the challenge-based management model, which has 
contributed towards giving each professional clearer guidance about their work, with greater autonomy and 
flexibility, allowing employees to work when, where, how and with whom they require. 
The voluntary and proactive internal mobility plan has become well established, together with the use of the 
LinkRED tool that can be accessed by all employees to share their experiences and interests in relation to 
development and mobility.  
In addition, to help students on higher vocational training courses to obtain qualifications, the Red Eléctrica 
Group has been actively involved in creating a vocational training programme with theoretical and practical 
content, as part of the dual vocational training system leading to the qualification of Senior Power Plant 
Technician.  
The aim of this initiative is to produce professionals who are qualified in this field and available to 
immediately take up maintenance specialist technician positions; to furnish the sector with trained 
professionals equipped with Red Eléctrica know-how; and to enhance the employability of young people, 
with a view to their becoming part of the domestic industrial fabric. The course for the first intake drew to a 
close in November 2019, the 2018/20 intake will graduate in 2020 and the third intake has already embarked 
upon the first year of study at the “Centro Integrado de FP” (integrated vocational training centre) in León. 
Lastly, in 2019 the Red Eléctrica Group ran a nine-month theoretical and practical programme led by the 
Company’s operators, that enables people to qualify as an Electricity Control Centre Operator. 
 Integration and universal accessibility for people with disabilities 
Disabilities are one of the main areas of focus of the Comprehensive Diversity Plan approved at the start of 
2019.  
The General Law on the Rights of People with Disabilities (LGD) is applicable to three of the Group’s 
companies, of which two comply with the law through direct employment: REINTEL (3.4%) and HISPASAT 
(2.2%). REE goes beyond legal compliance with alternative, exceptional measures, achieving 2.7% in total. 
Regarding compliance with the General Law on the Rights of People with Disabilities (LGD), in 2019 the Group 
achieved an average 2.7% equivalent employment for persons with disabilities at those Group companies 
that are subject to the aforementioned Law. Of this percentage, 1.0% corresponds to direct employment and 
the rest to the application of exceptional alternative measures within the framework of the LGD, consisting 
of contracting goods and services from Special Employment Centres and making donations to entities

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whose mission is the social and labour integration of people with disabilities, such as the Adecco Foundation, 
which provide support in carrying out actions related to disabilities as part of the annual diversity 
programme as we in turn contribute to their social initiatives.  
The percentage of Group employees with disabilities is as follows: 
 
2018 
2019 
People with disabilities (%)  
0.9 
0.9 
 
The corporate website of Red Eléctrica is developed using website accessibility criteria with Level Double-
A Conformance to Web Content Accessibility Guidelines 2.0 of the Web Accessibility Initiative (WAI) of the 
World Wide Web Consortium.  
One of the most valuable disability projects is the Family Plan, consisting of personalised assistance to 
improve social and labour integration of any Group employees’ family members with disabilities. 
Another highly interesting project is the participation in employment schools for people with disabilities, 
which is carried out as part of the Multiannual Corporate Volunteer Plan. 
Red Eléctrica has collaborated with the CERMI Women’s Foundation to bring about the 3rd edition of the 
Women and Girls with Disabilities Forum “UNITED FOR DIVERSITY”. 
 Equality and diversity 
The Group’s commitment to diversity, inclusion and non-discrimination has materialised in the form of its 
2018-2022 Comprehensive Diversity Plan, which is aligned with the Group’s Strategic Plan and the 2030 
Sustainability Commitment. It seeks to inspire and become a benchmark for the Group itself and in the wider 
social, labour and personal environment, through the Group’s commitment to talent diversity, social 
inclusion, employment and non-discrimination, breaking down stereotypes and cultural barriers. The goals 
of the Comprehensive Diversity Plan are:  
• 
Create a corporate culture that encourages diversity among employees and other stakeholders. 
• 
Integrate diversity into all of the Group’s processes, especially people management. 
• 
Involve, raise awareness and promote the Group’s mission and approach to diversity among 
collaborators and suppliers. 
• 
Participate with official organisations, academic institutions and other social agents in campaigns 
and projects that enable the Group to become a leading social agent that will contribute to building 
a more diverse society. 
• 
The Comprehensive Diversity Plan has the following specific objectives: 
o Ensure that at least 35% of the management team are women. 
o 0% wage gap. 
o Family-Friendly Company (EFR) classification - A+  
o LGD compliance of 70% through direct employment 
Gender equality is one of the vectors included in the new Comprehensive Diversity Plan and refers to the 
principles of equal employment opportunities, the promotion of women to positions of responsibility, salary 
equivalence between men and women, the promotion of familial co-responsibility, the prevention of 
harassment on moral, sexual and gender grounds and the prevention of gender violence. These aspects are 
monitored through indicators that enable the Group to measure the progress of the objectives defined.

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The percentage of women in the Group’s workforce in 2019 was 25.8% (24.0% in 2018). The number of women 
in management positions has once again increased significantly, totalling 31.8% in 2019 (28.1% in 2018). 
These results are nearing the targets set for 2022. 
The indicator that measures equal promotion opportunities (men/women), specifically for the domestic 
electricity infrastructure operation and management business, was 1.62% this year, surpassing the 1.20% 
target set for 2019. 
Equal opportunities in training reached 1.36%. It is worth noting the Group’s participation in all editions of 
the Promociona programme, with a total of 7 participating female managers. 
The significant female presence on the Executive Committee is also notable, with 55.56% women, as well as 
on the board of directors, where women have a 42% representation. 
During 2019 the Group has collaborated with entities and participated in various observatories and academic 
forums in relation to diversity, including: 
• 
Generation & Talent Observatory (Universidad Europea de Madrid), participation in the 
Intergenerational Health and Wellness project. 
• 
Instituto de empresa: Bias workshop and innovation and diversity study. 
• 
Real Instituto Elcano. Participation in the working group on gender equality and international 
relations. 
• 
Alcobendas Business Owners Association (AICA) Diversity Committee 
• 
Spanish Association of Executives and Directors (EJE&CON)  
• 
Association of Spanish diplomatic women (AMDE). 
• 
Royal Academy of Engineering (RAI): Participation in the “Women and Engineering” project to foster 
the involvement of women in STEM careers. 
• 
The Women’s Institute (Instituto de la mujer): participation in technical workshops on equality and 
gender violence. 
 
In 2019, various commitments and agreements were signed in relation to diversity, including: 
• 
Signing of the commitment #CEOPORLADIVERSIDAD: With a view to promoting the De&I (Diversity, 
equity and Inclusion) strategy with CEOE and Fundación Adecco. 
• 
Signing of the protocol “More women, better companies”: In order to ensure the presence of women 
in management roles, on steering committees and boards of directors, signed with the government 
department of the Ministry of the Presidency, Relations with the Cortes and Democratic Memory 
(MPR).  
• 
Renewed signing of the diversity charter with the Diversity Foundation (Fundación Diversidad). 
• 
Signing of the membership agreement with the Spanish Association of Women in Energy 
(AEMENER). Spanish Association of Women in Energy (AEMENER) 
 
The Group has received acknowledgement for the following: 
• 
Woman Forward Award for corporate governance and gender diversity in the “Corporate” category. 
• 
The Group is in the top 100 of the EQUILEAP ranking, at number 49.

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• 
It is also ranked in the top 30 of companies with best practices in diversity and inclusion. 
 
11.4. Information about respect for human rights 
Respect for human rights 
The Group has an explicit and public commitment to respect and promote human rights in every country in 
which it operates, with special emphasis on the freedoms and rights of vulnerable groups such as indigenous 
people, women, children and ethnic minorities, among others. This commitment is included in the rules of 
conduct and guidelines established in the Code of Ethics and the Corporate Responsibility Policy and applies 
to the whole supply chain through the Code of Conduct for Group Suppliers. Lastly, as a member of the 
Spanish network of the United Nations Global Compact, Red Eléctrica has strengthened its commitment to 
human rights by signing up to the ten principles of the Global Compact.  
In order to continue making progress in human rights management and to strengthen its commitment to 
upholding them, in 2017 the Group formalised a human rights management model, approved by the 
Sustainability Steering Committee, which applies to all of the Group’s activities and is based on the United 
Nations’ Guiding Principles on Business and Human Rights. 
The Group takes an approach based on control and continuous improvement, implementing actions that help 
to prevent potential human rights violations, while searching for solutions and redressing them in the event 
that they arise. The Group’s conduct in this area is subject to internal and external audits and it carries out 
corporate audits among its suppliers to ensure the effectiveness of the management model.  
The scope of the human rights due diligence carried out applies to all the Group’s activities. The results 
demonstrate a low level of risk in all analysed areas and shows that the Group applies the appropriate 
controls.  
The Group has set up a whistleblower channel available to all stakeholders as a formal mechanism for 
addressing any human rights-related enquiries or complaints. The Group also has the DÍGAME Service and 
ASA (the Procurement Support Service), through which stakeholders can express their concerns about any 
grievances in this area. In 2019, the DÍGAME Service received two human rights related complaints. 100% of 
these claims have been resolved. The whistleblowing channels available to stakeholders have not received 
any human rights related complaints in respect of HISPASAT.  
11.5. Information about the fight against corruption and bribery 
Ethics and Compliance in the Red Eléctrica Group 
Ethics and Compliance are fundamental pillars of the proper course of business at the Group. This means 
acting with the utmost integrity in discharging the Group’s obligations and commitments, and in relations 
and cooperation with its stakeholders. 
The Group has a series of corporate rules of conduct establishing the values and standards of behaviour that 
must be adhered to by all persons in the Group in the performance of their professional activities. 
Code of Ethics 
The Group’s Code of Ethics applies to the Group’s directors and employees and establishes the values and 
commitments that must govern their behaviour. The latest edition of the Group’s Code of Ethics was 
approved by the board of directors on 28 May 2013.

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Ethics Channel 
The Group has an Ethics Channel, available through its corporate website, to convey queries, complaints or 
suggestions relating to the Code of Ethics. The Group has an Ethics Officer for fielding queries and compiling, 
analysing and resolving complaints relating to the Code of Ethics. This figure, in direct contact with the 
Chairman and the board of directors, acts independently and undertakes to maintain the utmost 
confidentiality in performing their duties.  
In 2019, 21 queries were filed with the Ethics Officer and the maximum resolution time was 10 days. The 
queries related to the following patterns of behaviour:  
• 
Integrity, responsibility and transparency.  
• 
Respect, dignity and non-discrimination.  
• 
Responsible monitoring of supplier management. 
• 
Restriction on the acceptance of gifts, loans and invitations. 
• 
Adequate safeguarding of information systems. 
In 2019, 3 complaints were received in connection with compliance with the Code of Ethics, one of which is 
pending resolution. 
Compliance system 
The Group’s Compliance System is aligned with the best practices in this area, so as to support the 
organisation in fulfilling its obligations and commitments. 
In 2019, a global Compliance Policy for the Group was approved, expressing the organisation's commitment 
to the prevention, detection and response to any conduct that contravenes the legal obligations and 
commitments assumed voluntarily, in accordance with the values and behaviour guidelines of the Code of 
Ethics. 
The Group has a Compliance area that is entrusted with the design, development, implementation and 
monitoring of the organisation's compliance system.  
The main goals of the compliance system are: 
• 
Establish a control and supervision system to mitigate compliance risks. 
• 
Make available to the entire organisation the content of the principles and rules that should govern 
their performance within the Group and the instruments required to this end. 
• 
Raise awareness among Group members of the importance of the Compliance System and the 
necessary adaptation of their conduct to the values and behaviour guidelines of the Code of Ethics. 
• 
Formalise the Group's commitment to the prevention of any conduct that is contrary to the 
applicable legislation and to the commitments assumed voluntarily. 
• 
Inform the persons subject to the Compliance System that the violation of the principles and 
guidelines of the System will lead to disciplinary measures. 
• 
Establish appropriate control measures to mitigate the Group's compliance risk, as well as reaction 
and correction when a breach is detected. 
• 
Maintain supporting evidence of compliance with obligations and commitments.

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Legal compliance system  
The Group has a legal compliance system that aims to identify the rules, procedures and tools in place in the 
Group to prevent non-compliance with the criminal legislation applicable to the company and its personnel. 
The management and prevention of criminal risks that could affect the Group, based on its activities and 
business sectors, are thus incorporated into the Group's control processes.  
The process of reviewing and updating the Criminal Compliance System has been completed in 2019 with 
the aim of adapting it to the criteria of the Group's Global Compliance System and to best practices in 
criminal compliance management. 
The board of directors, as the ultimate body in charge of the Group's risk management, in accordance with 
applicable regulations, has designated the Criminal Compliance Committee as the specific body in control 
of the Group's Criminal Compliance System. The Criminal Compliance Committee is responsible for the 
supervision and monitoring of the Group's Criminal Compliance System and its objective is for the main 
criminal risks to be properly identified, managed and disseminated internally. 
In 2019, none of the Group’s companies were investigated or found guilty of acts of non-compliance linked 
to the organisation’s criminal risks. Likewise, no complaints were filed in connection with potential cases of 
corruption and no Group company was investigated or found guilty by any court in connection with non-
compliances linked to corruption cases. 
Prevention of corruption and money laundering 
The Code of Ethics and the Criminal Compliance System, which include aspects related to the fight against 
corruption and money laundering, constitute an effective mechanism for the detection and treatment of 
possible cases of corruption and fraud. The Group has a guide for the prevention of corruption: zero 
tolerance, approved by the board of directors in 2015, which establishes behaviour guidelines and 
commitments, as well as the performance criteria and main controls in place at the company associated 
with corruption, including money laundering. 
 
11.6. Information regarding society 
Impact of the activity on employment and local development 
The activities carried out by the Group, specifically in its electricity infrastructure operation and 
management business, undoubtedly have benefits for society, with the best known being that they maintain 
the continuity and safety of the electricity supply in conditions of high quality.  
Once again this year, Red Eléctrica’s investment in the transmission network in Spain has had a beneficial 
effect on society due to its dynamic effect on the economic activity of the country because by encouraging 
production it leads to an increase in wealth (as measured by GDP), in jobs and in tax revenue, which can be 
used to improve the general well-being of society. All this is the result not only of the Group's direct 
investments but also of the increase in activity driven by the circular flows of the economy. 
Since 2017, the Group has used a benchmark methodology based on implicit multipliers of activity, computed 
using the latest Input-Output Tables provided by the Spanish National Statistics Institute (INE) to estimate 
the level of general activity generated as a result of an initial investment. Calculations are performed taking 
into account three main effects:

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Direct effect 
Indirect effect 
Induced effect 
Estimation and valuation 
of the production chain 
and job and income 
creation generated in the 
economic system by an 
initial investment. 
Income and jobs created when the 
beneficiaries of the initial investments 
acquire other goods and services 
(intermediate consumption) from 
other production systems, which in 
turn acquire goods and services from 
their own suppliers.  
Impact arising from all the income 
generated in the previous stages. This 
effect thus incorporates the effect of the 
final consumption arising from the wage 
income generated and the tax revenue 
obtained by governments when taxing the 
different economic activities and the 
income they generate. 
 
In 2019, the Group’s total investment in the transmission network in Spain amounted to Euros 396.4 million, 
of which an estimated Euros 71 million were spent on importing the products needed to carry out the activity. 
The remainder, totalling around Euros 325 million, consisted of direct investment in Spain, the effect of 
which, after applying the chosen methodology, is broken down in the following table:  
Total effects of the investment in the transmission network 
 
Direct 
Indirect 
Induced 
Total 
Generation (€M) 
325 
286 
30 
641 
Income-GDP (€M) 
149 
124 
10 
283 
Employment (no. of positions) 
2,214 
2,208 
305 
4,727 
Tax income (€M) 
54 
47 
4 
105 
 
This same methodology is already being applied to other specific investment projects to estimate the socio-
economic contribution to the region and country in terms of wealth (measured by GDP), output, jobs and tax 
revenue. 
The investment made in Spain has generated Euros 641 million of output in the business sectors concerned, 
which is almost double the investment made (Euros 325 million). This led to a contribution of Euros 283 
million to Spanish GDP (around 14.1% of the Group’s revenues in 2019), which has generated activity 
equivalent to 4,727 jobs. All this combined has generated tax revenue of Euros 105 million (represents 
approximately 7.5% of provisional collection in 2019 for the special electricity tax). 
Impact of the activity on local populations and the local area 
The Group focuses its socio-environmental commitment towards unlocking shared value with society by 
pursuing actions and investments that are aligned with its business goals and, while generating value for the 
Group, also have a positive impact on society, the country or region and its inhabitants. It also contributes 
to the attainment of various challenges, such as the UN’s Sustainable Development Goals or those envisaged 
as part of the European 2020 energy strategy. 
Shared value is created by the Group both in the way it develops and builds infrastructure and in the way it 
operates and delivers services to the effective systems it operates in and to its customers. This activity 
generates opportunities to unlock shared value throughout the infrastructure life cycle. 
In addition, the Group supplements its projects in the area with collaboration projects to nurture institutional 
and social relationships, transparently seeking collaboration agreements, disseminating information about 
the electricity network and fostering involvement in projects and initiatives that boost socio-economic 
development, education, social well-being and the conservation, protection and enhancement of natural and 
cultural heritage in the countries and regions in which it operates.

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In 2019, the Group contributed over Euros 8 million (amount calculated using the London Benchmarking 
Group methodology) to social initiatives. 
 
Of the total social initiatives carried out by the Group in 2019, 62 are contributions to funds and non-profit 
organisations, totalling Euros 1.7 million. 
In 2019, the Group signed over 100 agreements with public and social entities, mainly to cooperate on socio-
economic, environmental, educational and cultural development projects.  
Of the 545 social initiatives undertaken, 289 were focused on the socio-economic development of the local 
area, including, among others, municipal infrastructure construction or improvement projects, efforts to 
nurture the area’s cultural wealth and restoration of emblematic and socially significant buildings with an 
impact on tourism. 
With regard to the dissemination of knowledge, the Group has always played an important role through 
activities that foster the spreading of knowledge on the Spanish electricity system, which is even more 
important now given the great challenge posed by the new energy transition model through the 
decarbonisation of the economy, since a better informed society has greater capacity to develop and 
maintain a new sustainable energy model.  
In 2019, as part of its institutional commitment, the Group welcomed 212 visits, which is an increase of 39% 
with respect to the prior year. Over 2,000 people visited Red Eléctrica’s facilities and the control centres 
(CeCoEl, Cecre and island control centres).  
Another major area in which the Group is involved is the education of school children, most notably through 
the itinerant exhibition “A Motorway behind the Wall Socket” explaining the electricity supply process from 
generation to consumption, which was attended by more than 9,000 visitors, as well as the educational game 
’entreREDes’, aimed at teaching children to be efficient and environmentally-friendly consumers in the 
future, which attracted over 8,250 school children. 
The Group has 24 collaboration agreements with universities and educational institutions. 
The training programme for the State Police and Security Forces continued. During 2019, 12 forest fire 
prevention training days were organised in 14 provinces in 4 autonomous regions, in which 622 people took 
part. 
Corporate volunteering 
The Group’s Healthy Company model fosters well-being through actions aimed at promoting the well-being 
of people through actions that also consider the state of the surrounding environment, seeking for this 
commitment not only to apply to the work environment but also the wider community.  
Thus, the Group’s corporate volunteering model, approved in 2017, extends its social action by driving and 
reinforcing collaboration in solidarity activities that respond to the social needs, problems and interests 
defined in its action guidelines.

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The corporate volunteering model has a strategic and transformational focus, aimed at promoting 
volunteering actions which, on the one hand, channel internal talent into corporate volunteering and, on the 
other, provide innovative solutions to social and environmental problems. The actions carried out in 2019 
were in response to the interest shown by participating volunteers and were targeted primarily at improving 
the quality of life for groups at risk of social exclusion, fostering employability and meeting specific, real 
needs of society. 
The volunteering actions carried out in 2019 saw a participation of individual volunteers of 33.6%, which is 
far higher than the target set at the beginning of the year (20%). 
Main corporate volunteering actions in 2019 
SOCIAL VOLUNTEERING 
Give and Gain 
Participation in Forética’s International Volunteering Week through initiatives carried out 
in Madrid, Barcelona, Seville, Granada and Zaragoza. Each region chose the most relevant 
action for them.  
• 89 volunteers 
Adecco’s employment 
school 
Mentoring sessions held to improve the employability of people with disabilities and women 
at risk of social exclusion in Madrid, Mallorca, Zaragoza, Valencia, Barcelona and Zaragoza.  
• 41 volunteers 
A LA PAR Foundation 
Mentoring 
Mentoring by the management team in Madrid of young persons with learning disabilities to 
improve their personal development and employability.  
• 9 volunteers 
Christmas activities with 
Cruz Roja 
Collection of a total of 438 new books for children aged 0 to 9 in all regions of Spain.  
• 438 volunteers 
SOCIAL AND HEALTHCARE VOLUNTEERING 
Heroes at home project 
with the Stop Strokes 
Association (Asociación 
Freno al Ictus) 
Raising awareness about strokes, addressing over 300 children in schools. Volunteers will 
receive training prior to visiting the schools to provide information on the condition and the 
actions to take. 
• 10 volunteers 
Children’s day with Cruz 
Roja 
Preparation of 500 child hygiene kits for international children’s day.  
• 500 volunteers 
ENVIRONMENTAL VOLUNTEERING 
“Red Natura 2000” project 
Cleaning of protected natural habitats in Zaragoza in collaboration with the Spanish 
Ornithology Society (SEO) and BirdLifeen.  
• 13 volunteers 
Project LIBERA 
Cleaning rubbish in natural habitats in Madrid and Seville, once again in collaboration with 
SEO/BirdLife.  
• 67 volunteers 
Limne Foundation 
Planting of helophytes in the Turia river (Valencia). These plants are crucial in favouring the 
filtration of pollutants and the oxygenation of water. 
• 20 volunteers 
Ocean’s day 
Cleaning of Caletillas beach in collaboration with the council, the island authorities and 
various associations in Tenerife, as well as the performance of environmental workshops, 
an exposition and the release of turtles into the wild. 
• 11 volunteers

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Acteo, Arqueología y 
Patrimonio S.L. 
Day of cleaning and superficial trimming of weeds in Galapagar, Madrid.  
• 21 volunteers 
Release into the wild of 
Cory's shearwaters 
Release into the wild of 9 Cory's shearwaters, a nesting bird in the Canary Islands that 
breeds in colonies on islets and coastal cliffs.  
• 27 volunteers 
 
Other corporate volunteer actions that are worth mentioning are the collection of solidarity bottle tops that 
were sent to the CEPRI association (an entity that provides educational and rehabilitation care for people 
with autism), the solidarity auction of donated institutional gifts, the money from which was donated to the 
Apsuria Foundation for people with learning disabilities, and the participation in solidarity races in Barcelona 
and Zaragoza. 
Participation in organisations 
The Group is a member of and is active in various international organisations and associations, particularly 
within the European Union, with a view to raising awareness of its stance on fundamental aspects of its 
activity, building strong alliances and contributing to the achievement of common objectives. 
European Network of 
Transmission System 
Operators for Electricity 
(ENTSO-E) 
Red Eléctrica is a member of this association along with all the other European 
transmission network managers. ENTSO-E is the fundamental tool for collaboration 
among TSOs in building the Internal Energy Market. The main areas in which the Group 
cooperates in ENTSO-E are the development of the Internal Energy Market, the 
development of the European electricity infrastructure network and the coordination of 
the European electricity system. It also works with ENTSO-E on innovation and 
technological development. Combining the experience and technical capacity of its 
members, ENTSO-E has been assigned the task of developing the current network codes 
and is the main technical advisor to the European institutions on electricity matters. Its 
involvement is essential in meeting the challenges of the new energy transition scenario, 
characterised by emissions reduction, large-scale integration of renewable energy, 
flexibility and new technologies. 
RGI (Renewable Grid 
Initiative) 
Through the joint participation of the TSOs and NGOs in RGI, the Group addresses the 
environmental concerns of all its stakeholders, directing its action towards the 
development of efficient, sustainable, clean and socially accepted electricity 
infrastructure networks that are capable of integrating decentralised renewable 
resources on a large scale. 
 
The Group participates in other international electricity-related organisations such as IESOE (Interconnexion 
de l’électricité du Sud-ouest de l’Europe), GO 15 (Reliable and Sustainable Power Grids), Med-TSO 
(Mediterranean Transmission System Operators), EASE (European Association for the Storage of Energy), 
ICGN (International Corporate Governance Network) and CIGRE (International Council of Large Electricity 
Networks). 
Regarding 
the 
satellite 
business, 
HISPASAT 
participates 
in 
the 
International 
Telecommunications Union (ITU), the Inter-American Telecommunications Commission (CITEL) and the 
Inter-American Telecommunicatios Asociation (ASIET).  
The Group participates in organisations or domestic associations that seek different objectives:

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o Share and extend the best practices in the business context 
Spanish Quality 
Association (AEC) 
An association aimed at defending and promoting quality as a driver of 
competitiveness in business and improvement in society. 
Spanish Compliance 
Association (ASCOM) 
The first association created to professionalise the compliance function and 
facilitate the exchange of ideas and best practices. 
Spanish Association for 
Standardisation and 
Certification (AENOR) 
An association that contributes to improving the quality and competitiveness of 
companies by developing technical standards and certifications. 
Emisores Españoles 
An association that fosters measures to reinforce legal certainty in the issue of 
listed securities and contributes to the development of high standards of 
corporate governance. 
 
o 
Favour knowledge of the Group’s activities in the electricity sector 
Spanish Energy 
Association (ENERCLUB) 
An association that contributes to a better understanding of various energy-related 
issues among interested parties in society. 
Madrid Energy 
Foundation (Fundación 
de la Energía de la 
Comunidad de Madrid) 
The foundation drives initiatives and research programmes for the development and 
application of energy technologies. 
Energy Cluster (Clúster 
de la Energía) of various 
autonomous regions  
A group that promotes the development and competitiveness of energy companies 
in Spain.  
o 
Promote the Group’s commitment to sustainability 
Sustainability 
Excellence Association 
(Club de Excelencia en 
Sostenibilidad) 
A business association aimed at driving sustainability by sharing and building 
awareness of good practices. 
Forética 
An association of companies and sustainability professionals promoting the 
integration of environmental, social and good governance issues in companies’ 
strategy and management. 
Association for 
Excellence in 
Management and 
Innovation (Club 
Excelencia en Gestión e 
Innovación) 
A business association aimed at strengthening the global competitiveness of 
organisations and professionals through the values of excellence. 
Integrity Forum (Foro de 
Integridad) of 
Transparency 
International Spain 
A think tank for improving compliance and ethical management in companies. 
Voluntare Foundation 
A global corporate volunteering network that helps to connect companies with third 
sector organisations.

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 Subcontracting and suppliers 
The globalisation of markets has extended the limits of companies’ responsibilities and triggered a change 
in the role of suppliers, which have become a pivotal element. The Group extends its responsibility over the 
supply chain and adheres to a responsible management model, based on the principles of non-
discrimination, mutual recognition, proportionality, equal treatment and transparency, as well as a 
framework of legislation and internal Group codes, policies and rules.  
In 2019, specifically for the electricity infrastructure operation and management and Telecommunications 
(fibre optics) businesses, contracts worth a total of EUR 617 million were awarded to 1,071 suppliers. Of that 
amount, 82% relates to services and works, while the remaining 18% relates to materials and equipment. 
91% of the total amount was awarded to suppliers based in Spain and 98% to suppliers in EU countries, which 
means the Group acts as a driver of growth, fostering business, industrial and social development by 
creating employment throughout the supply chain.  
Besides the aforementioned 1,071 suppliers, an additional 1,038 companies (subcontractors) also did work 
for the Group, bringing the total number of companies that worked within the framework of the Group’s 
contracts to 2,109. In this context, it should be pointed out that the turnaround time for subcontracting 
requests was 1.5 days, a figure that has decreased in recent years, improving on the commitment to resolve 
subcontracting requests within two days. 
Social audits were conducted at 53 suppliers during 2019 to verify compliance with the Code of Conduct 
among the Group’s suppliers.  
As a result of the audits, 44 action plans have been agreed with 16 suppliers, so that supplier development 
can be monitored and improvements recorded. The results of these audits and their findings are shared 
internally, placing special emphasis on the detection of major non-compliances. 
 Consumers 
Since 2008 the “Dígame” service has provided a professional response to requests from external 
stakeholders, who have several channels of communication at their disposal (telephone, email and online 
form). The service is manned by employees of Fundación Juan XXIII Roncalli, an institution that facilitates 
the integration of people with disabilities in the workplace. 
In the Dígame service, external stakeholders receive a professional response to their requests through 
several channels of communication. In 2019, the service processed 3,887 requests.

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Assistance received by stakeholder 
 
 
Requests handled through the Dígame service in 2019 
By type: 
 
Impact of the facilities 
47 
Quality and continuity of supply 
196 
Information on operation 
1 
Information on supplier management 
1 
Corporate assistance 
1 
Total 
246 
By stakeholder complainant: 
 
Social environment 
198 
Business sector/Professional associations 
46 
Other 
2 
Total 
246 
Note: Proper claim is understood as that which corresponds to functions and responsibilities.  
 
Of the 246 claims from 2019, 53 were considered (accepted by considering certain and reasonable the 
arguments underpinning their acceptance, whether complete or partial). Most of the claims received have 
been related to: impact of facilities and quality and continuity of supply. The first type primarily consists of 
claims that have their origin in the cutting down and clearing of vegetation, while the second group reflects 
claims related to the incidents in Menorca in October 2018 and Tenerife in September 2019. 
The five claims that remained open at the end of 2018 were closed during 2019. 
Between October and December 2019, HISPASAT received a total of 736 requests from stakeholders (343 
incidents, 0 complaints, 0 suggestions and 393 queries) through its call centre and its support centre 
integrated in the company's corporate website. The assistance needed for any type of request from the 
customer through any of the official channels is provided by HISPASAT’s personnel based on the Customer 
Service Procedure and the Incident Management Procedure. Both define the life cycle of the request through

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their statuses, the hierarchical levels that deal with each request based on the responsibilities derived from 
each one and guidelines for their resolution. 
It is worth highlighting that the activity of the Group companies has no impact on the health and safety of 
consumers. In the case of energy transmission activity, it should be noted that due to the criteria applied in 
the design of the facilities, the levels of the electric and magnetic fields (EMFs) remain below those 
recommended by the Council of the European Union (Official Journal of the European Union 1999/519/EC: 
limitation of exposure of the general public in areas where they spend significant time, of 5 kV/m for the 
electric field and 100 µt for the magnetic field). The main criteria applied are as follows:  
• 
Construction of double circuits and translocation of phases in lines.  
• 
Increasing the height of supports, thereby increasing the safety distances.  
• 
Minimum distances from the lines to population centres and isolated homes. 
To verify compliance with recommendations, the Group has a tool that uses certain line parameters to 
accurately gauge the maximum levels of EMFs that the facilities can generate. 
 Tax information 
The Group is committed to compliance with tax laws and the fulfilment of its tax obligations, seeks a 
cooperative relationship with the tax authorities and considers it important to contribute to economic and 
social development by paying taxes in all the countries in which it operates. 
The Group’s tax strategy was approved by the board of directors on 30 June 2015 and is intended to define a 
consistent approach to tax matters in line with the Group’s strategy. It embodies the Group’s vision and 
objectives in tax matters and is based on three core values: transparency, good governance and 
responsibility. 
On 29 September 2015, the board of directors approved the Group’s Tax Risk Control and Management Policy 
and its inclusion in the Comprehensive Risk Management Policy. The tax risk control and management 
systems are described in the corporate governance report. 
The Group’s Tax Strategy and Comprehensive Risk Management Policy may be consulted on the corporate 
website. 
Both the Code of Ethics and the Tax Strategy state the Group’s commitment not to create companies in 
countries considered tax havens in order to evade tax.  
The Group has no presence and carries out no activity in countries considered tax havens under applicable 
laws and regulations.[1] 
 
 
 
 
 
 
                                                
[1] Royal Decree 1080/91 of 5 July 1991, subsequently amended by Royal Decree 116/2003 of 31 January 2003; EU list of non-cooperative countries and 
jurisdictions in taxation matters and list of non-cooperative tax havens drawn up by the OECD.

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Profits obtained, broken down by country 
Millions of Euros 
  
Profit before corporate income 
tax (*) 
2018 
2019 
Spain 
921 
930 
Peru 
6 
7 
Chile 
-6 
-7 
Brazil 
- 
3 
(*) Comprises the pre-tax income and expenses of each company, excluding dividends received from Group entities, aggregated at country level. 
Corporate income tax paid 
With a view to following best practices in corporate social responsibility and voluntarily providing greater 
transparency in tax matters for its various stakeholders, since 2014 the Group has calculated and published 
its total tax contribution, highlighting the significant economic and social importance of its tax contribution. 
The Group’s total 2019 tax contribution in all the countries in which it operates amounted to Euros 732 million, 
consisting of Euros 251 million paid and Euros 481 million collected. 
The corporate income tax paid in each country in 2019 and 2018, understood as the amount of corporate 
income tax paid, is as follows: 
Millions of Euros 
Corporate income 
tax paid 
2018 
2019 
Spain 
202 
195 
Peru 
3 
4 
Chile 
1 
1 
Total 
206 
200 
 
Corporate income tax in 2019 accounts for 80% of the taxes paid by the Group to governments, mainly the 
Spanish government. 
Government grants received 
In 2019, Euros 0.3 million were received from official bodies mainly for R&D&i projects. The grants received 
in 2019 and 2018, broken down by country, are as follows: 
Millions of Euros 
Government grants re-
ceived 
2018 
2019 
Spain 
3 
0.3 
Total 
3 
0.3

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11.7. Index of content required by Law 11/2018 of 28 December 2018 on disclosure of non-
financial and diversity information 
 
CONTENTS 
Page 
Reporting framework 
Description of the business model: 
– Business environment 
– Organisation and structure 
– Markets in which the Group operates 
– Objectives and strategies 
– Key factors and trends that may affect future developments 
26  
(1) 102-1, 102-2, 102-4, 102-6, 
102-7, 102-40, 102-43, 102-44, 
102-46, 102-47, 102-49 
 
I. Information on environmental matters 
 
 
Management approach 
29 
(1) 103-1, 103-2,103-3 
Present and foreseeable impact of the company’s activities on the environment, health and safety. 
29 
Internal framework. Descrip-
tion of the impact of the ac-
tivity on the environment, 
health and safety 
Environmental assessment or certification procedures. 
30 
Internal framework. Certified 
Environmental Management 
System 
Resources allocated to preventing environmental risks. 
29 
Internal framework. Ordinary 
expenses incurred for envi-
ronmental protection and im-
provement. 
Application of the precautionary principle 
29 
(1) 102-11 
Provisions and guarantees for environmental risks. 
29  
Internal framework. Amount 
allocated to environmental 
aspects associated with in-
vestment projects 
Pollution 
Measures for the prevention, reduction or remediation of the effects of carbon emissions (also includes 
noise and light pollution) 
30 
Internal framework. Measures 
for the prevention of noise, 
light and atmospheric pollu-
tion, as well as measures for 
the reduction of carbon emis-
sions 
Circular economy and waste prevention and management 
Measures for the prevention, recycling, reuse and other recovery and disposal of waste. 
 
30 
Internal framework. Circular 
economy measures 
Actions to combat food waste 
Not signifi-
cant 
These types of actions are not 
carried out due to the nature 
of our activities 
Sustainable use of resources 
Water consumption and supply 
32 
(1) 303-1 
Consumption of raw materials and measures to improve efficiency 
Not signifi-
cant 
The company’s activities do 
not entail direct consumption 
of raw materials 
Direct and indirect energy consumption 
32 
(1) 302-1 / 302-2 
Measures taken to improve energy efficiency 
30 
Internal framework. Initiatives 
to combat climate change and 
energy efficiency measures

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Use of renewable energies 
32 
Internal framework. Qualita-
tive/quantitative information 
on the use of renewable en-
ergy 
Climate change 
Key elements of the greenhouse gas emissions generated 
30 
(1) 305-1 / 305-2 / 305-3 / 305-4 
Measures taken to adapt to the consequences of climate change. 
30 
(1) 305-5 
Voluntary medium and long-term emission reduction targets set and steps taken. 
30  
Internal framework. Objective 
for reducing emissions and 
combating climate change 
Protection of biodiversity 
Measures taken to preserve or restore biodiversity 
31 
(1) 304-1 / 304-3 
Impacts caused by activities or operations in protected areas. 
32 
(1) 304-2 
II. Information on social and employee-related issues 
 
 
Management approach 
32 
(1) 103-1, 103-2,103-3 
Employment 
Total number and distribution of employees by gender, age, country and professional qualifications. 
33 
(1) 102-8 
Total number and distribution of employment contract types by gender, age and job category. 
35 
(1) 102-8 
Average annual number of permanent, temporary and part-time contracts, by gender, age and profes-
sional category 
36 
Internal framework. Average 
annual number of contracts 
by type, broken down by gen-
der, age and professional cat-
egory 
Number of dismissals by gender, age and professional classification 
38 
Internal framework. Details of 
dismissals for the year by 
gender, age and professional 
classification 
Wage gap 
39 
(1) 405-2 
Average pay by gender, age and professional classification 
39 
Internal framework. Average 
total salary by gender, age 
and professional classifica-
tion 
Remuneration of like positions or average remuneration in the company 
39 
(1) 405-2 
Average remuneration of directors by gender  
40 
Internal framework. Average 
remuneration of members of 
the board of directors by gen-
der 
Average remuneration of management personnel by gender 
40 
Internal framework. Average 
remuneration of senior man-
agement personnel by gender 
Implementation of workplace disconnection policies. 
40 
Internal framework. Work-
place disconnection 
measures 
Employees with disabilities 
45 
Internal framework. Percent-
age of employees with a disa-
bility 
Organisation of work 
Organisation of working hours 
41 
Internal framework. Real and 
effective working day 
Number of hours of absenteeism. 
40 
Internal framework. Number 
of hours of absenteeism

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
 
Red Eléctrica Corporación and Subsidiaries  
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Measures aimed at facilitating a work-life balance and encouraging the joint and responsible sharing 
thereof by both parents 
40 
(1) 401-2 
Health and safety 
Occupational health and safety conditions. 
41 
(1) 403-3 / 404-1 / 404-2 
Number of workplace accidents and occupational illnesses by gender, frequency and severity 
42 
(1) 403-2 
Social relationships 
Organisation of social dialogue, including procedures on worker communication, consultation and nego-
tiation 
43 
(1) 402-1 
Percentage of employees covered by collective bargaining agreements by country 
43 
(1) 102-41 
Outcome of collective bargaining agreements, particularly in the field of health and safety 
44 
(1) 403-1 / 403-4 
Training 
Policies implemented  
44 
(1) 404-2 
Total hours of training by professional category 
45 
(1) 404-1 
Universal accessibility for people with disabilities 
Universal accessibility for people with disabilities 
45 
Internal framework. Accessi-
bility measures 
Equality 
Measures taken to promote equal treatment and equal opportunities for women and men 
46 
Internal framework. Measures 
adopted to promote diversity 
Equality plans: job stimulation measures, protocols against sexual harassment and gender bias 
46 
Internal framework. Diversity 
plan 
Integration and universal accessibility for people with disabilities 
46 
Internal framework. Hiring of 
people with disabilities and 
integration and accessibility 
measures 
Policies against all kinds of discrimination and, as the case may be, diversity management 
47 
Internal framework. Anti-dis-
crimination policy  
III. Information about respect for human rights 
 
 
Management approach 
48 
(1) 103-1, 103-2,103-3 
Implementation of due diligence procedures in relation to human rights 
48 
(1) 407-1 / 408-1 / 409-1 
Prevention of risks of human rights abuses and, where appropriate, measures to mitigate, manage and 
redress any potential abuses committed 
48 
(1) 411-1 / 412-1 / 412-3 
Reporting of human rights infringements 
48 
(1) 102-17 
Promotion of and compliance with the provisions of the core conventions of the International Labour 
Organisation with regard to respect for freedom of association and the right to collective bargaining; 
elimination of discrimination in employment and occupation; elimination of forced or compulsory labour; 
effective abolition of child labour. 
44 
Internal framework. Compli-
ance with ILO provisions 
IV. Information about the fight against corruption and bribery 
 
 
Management approach 
48 
(1) 103-1, 103-2,103-3 
Measures to prevent corruption and bribery 
48 
(1) 102-16 / 102-17 / 406-1 
Measures to combat money laundering 
50 
(1) 102-16 / 102-17 / 406-1 
Contributions to foundations and non-profit organisations 
52 
Internal framework. Contribu-
tions to foundations and non-
profit organisations 
V. Information about the company 
 
 
Management approach 
50 
(1) 103-1, 103-2,103-3 
The company’s commitments to sustainable development 
Impact of the company’s activity on employment and local development 
50 
(1) 413-1 
Impact of the company’s activity on local populations and the local area 
51 
(1) 413-1 
Relations with local community actors and types of dialogue 
52 
(1) 413-1 
Association and sponsorship actions 
53 
(1) 102-13

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.) 
 
 
 
 
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Subcontracting and suppliers 
Inclusion of social, gender equality and environmental issues in the purchasing policy 
56 
(1) 414-1 
Attention given to social and environmental responsibility in relations with suppliers and subcontractors 
56 
(1) 414-1 
Supervision systems and audits and results 
56 
(1) 308-1 / 308-2 
Consumers 
Measures to protect consumer health and safety 
56 
(1) 416-1 
Systems in place for making claims 
57 
(1) 102-43 / 102-44 
Complaints received and resolution thereof 
57 
(1) 102-43 / 102-44 
Tax information 
Profit obtained, broken down by country 
58 
(1) 207-4 
Corporate income tax paid 
58 
(1) 207-4 
Government grants received 
58 
Internal framework. Govern-
ment grants received 
                 
(1) 
This table shows the equivalence between the requirements of Law 11/2018 and the GRI indicators. Red Eléc-
trica has published non-financial information since 2003 in accordance with successive versions of the Sus-
tainability Reporting Guidelines of the Global Reporting Initiative (GRI).  
 
 Annual Corporate Governance Report 
The Annual Corporate Governance Report forms an integral part of the directors' report and can be viewed 
at the following address: 
http://www.cnmv.es/Portal/consultas/EE/InformacionGobCorp.aspx?nif=A-78003662