NEXT RELEVANT CHANGES IN THE BILL OF LIGHT

The CNMC (National Commission for Markets and Competition) has approved Circular 3/2020, which establishes a new methodology for the calculation of electricity costs, which establishes new modalities for electrical contracting for all consumers.

This circular establishes a new distribution of the cost of transport and distribution networks among electricity consumers. This distribution is done, as currently, based on the power and energy they consume, but the way to do it is very different from the current one.

The new methodology increases the recovery of the costs of the transport and distribution network through the term of power and reduces the costs of the energy consumed, in order to promote electrification and discourage the peak electricity demand.

Currently in the electricity bill, these concepts appear that add up to the total cost of the bill:

- The term of energy, that is, the electricity consumed monthly.
- The term of power, that is, the power that is contracted to be able to have all the appliances and other household appliances and lights on.
- Electricity tax.
- Rental of measuring equipment (meter).

On the other hand, users can choose between two types of electricity contracting modalities:

- Contract with government regulated price (PVPC)
- Free market contract with free price set by the contracted electricity company.

What do these changes mean for the domestic consumer?

The next changes will mean that for users with contracted power equal to or less than 15 kW, electricity (energy term) will have 3 prices depending on the hours it is consumed: tip (when there is more demand for energy) plan (when there is a medium energy demand) and valley (when there is less energy demand). As for the power (power term), with the next changes different powers can be hired that will be applied at different times of the day, so that a higher power can be hired only at certain times of the day.

- Rush hour (the most expensive): from 10 a.m. to 2 p.m. and from 18 h. at 22 h.
- Flat time (cheaper): from 8 a.m. to 10 a.m., from 2 p.m. to 6 p.m. and from 22 to 24 h.
- Valley time (the cheapest): between 0 h. and 8 a.m.

On weekends and holidays, all hours will be "valley hours."

These changes will apply both to customers subscribed to the regulated price (PVPC) and to users subscribed to free markets.

This new system makes contracting difficult, but introduces the opportunity to adjust it to the needs of the consumer and to be able to pay less for the electricity bill. For example, since at night (valley period) will be cheaper, it will be possible to have a higher contracted power only during these hours to charge the electric vehicle.

On the other hand, all other consumers (high voltage or more than 15 kW) will have 6 periods, both in terms of power and in terms of energy. In this case, the structure will be more complex and the toll prices (tax intended to cover the cost of supply networks) will be different depending on the time, day and month.

Keep in mind that this circular does not specify the methodology for calculating another part of the invoice costs (charges that cover other expenses of the electrical system). This methodology must be established by the Spanish government and has not yet been approved.

When will these changes occur?

The application of the CNMC Circular established these changes will be effective when the Ministry for Ecological Transition and Democratic Challenge publishes the new charges that will apply in the invoice. Until then, the electric power billing system will remain as until now.