Red Eléctrica was the first company in the world dedicated exclusively to power transmission and the operation of electrical systems. A pioneer in its field, the company occupies a position of leadership today in these activities. When it was created in 1985, it took over the transmission grid and the operation of the Spanish power system, well before the recent world-wide trend towards the segregation of activities, establishing transmission as a separate activity from generation and distribution. This marked a radical change in how the Spanish power sector operated and served as a model for other countries when liberalising their power sectors. The Electricity Sector Act 54/1997 confirmed the role of Red Eléctrica as a cornerstone of system operation. This law created a wholesale power market which required an effectively-managed transmission grid to work properly and a coordinated operation of the generation-transmission system, to ensure that demand would be satisfied at all times. Act 17/2007 of 4 July amended the previous law to adapt it to European Directive 2003/54/CE which established the common guidelines for the internal power market. This law has resulted in the definitive consolidation of the Red Eléctrica's TSO Model (Transmission System Operator). In this regard, Red Eléctrica, as the system operator, guarantees the continuity and security of the power supply and the proper coordination of the production and transmission system, performing its functions based on the principles of transparency, objectiveness and Independence. In addition, Red Eléctrica is the manager of the transmission grid and acts as the sole transmissioner on an exclusive basis. Red Eléctrica is recognized world-wide as an efficient company that renders its services to the power sector and to society in a safe and reliable manner.

Red Eléctrica Corporación is the holding company of the Group and it has the following dependant subsidiaries: Red Eléctrica de España, responsible for the electricity activities in Spanish territory; Red Eléctrica Internacional, responsible for the Company's foreign investment and the Group’s international consultancy service; Red Eléctrica de España Finance and Red Eléctrica Financiaciones, created as vehicles for financing the various activities of the companies of the Group; REDCOR Reaseguros S.A., created as a captive reinsurance company to reinsure the risks linked to the activities, guaranteeing better access to international markets, and Red Eléctrica Infraestructuras de Telecomunicación, responsible for the management of the business in the telecommunications sector.