June 15, 2021

The Government postpones the entry into force of the new electricity bill until June


The Government postpones to June the entry into force of the new electricity bill, until now scheduled for April. The Ministry for the Ecological Transition has begun the period of public information of a draft ministerial order that establishes the prices of charges for the electricity system and payments for capacity. These “will come into effect on June 1, 2021,” the ministry explains in a note.

Endesa asks that the new electricity bill

Endesa asks that the new electricity bill “be implemented well” and hopes that it will be postponed again

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The objective is that “the different agents of the electricity system know well in advance the applicable prices as of June 1 to be able to anticipate and adapt to the change in the electricity billing structure.” On Wednesday, Endesa’s CEO, José Bogas, has already claimed that the new electricity rate structure, which accumulates several postponements, “be implemented well”, and predicted that its start-up would be postponed again. “I think we are going to be closer to summer than April,” he said.

In June, the National Commission of Markets and Competition (CNMC) already postponed to April 1 of this year the period available to distributors and marketers to adapt their equipment, computer systems and contracts to the new toll structure, whose The most relevant change for the user will be to implement three daily billing periods (peak, flat and valley) that will significantly reduce the cost of hiring additional power in off-peak hours to electrify demand.

The new structure has its origin in a Royal Decree-Law of 2019 that modified the Electricity Sector Law in such a way that the current access tolls of the electricity sector (which include all the regulated costs of the system) were replaced by two different concepts: network tolls (transport and distribution), which are determined by the CNMC, and charges, which are set by the ministry and which include the cost of the special regime for renewable energies, cogeneration and generation with waste (RECORE) or financing 50% of the extra cost of the isolated electricity systems (the two archipelagos, Ceuta and Melilla), after deducting the income from the auctions of emission rights and the taxes of Law 15/2012.

The order that the ministry has brought to the hearing establishes the prices for the year 2021 of the different tariff segments of the charges of the electrical system, the prices applicable to the charging points of electric vehicles of public access and the unit prices applicable to the financing of capacity payments. This order is developed in application of a draft Royal Decree that establishes the methodology to calculate the charges of the electricity bill and that will be sent to the Council of Ministers in the coming weeks for approval.

With the prices of the charges that are submitted to this hearing procedure, “it is ensured that the income of the electricity system in 2021 will be sufficient to cover the total amount of the regulated costs that finance the charges in this year,” explains Transición Ecológica.

To “provide coherence and simplicity to the system”, the draft Royal Decree chooses the same rate structure as that set by CNMC in its methodology for calculating electricity transmission and distribution tolls.

Fixed and variable part

The methodology included in the future Royal Decree establishes that the calculation of the charges consists of a fixed part and a variable, which is determined based on the energy consumed in the home, company or industry. The combined effect of the new charges and tolls will make the electricity bill have a greater variable component: it will depend more on the amount of energy consumed, “which will allow energy saving and efficiency measures to have a positive impact on consumers”, notes the ministry.

The new tolls and charges also encourage the installation of self-consumption systems or the deployment of infrastructures for rapid recharging of electric vehicles by favoring demand management. A single rate will be enabled for customers with less than 15kW of contracted power –most of domestic users and SMEs–, for which 75% of the charges will be calculated based on their energy consumption and the remaining 25% will be fixed term, depending on its contracted power. For the rest of the consumers, 40% of the charges will come from the fixed term and 60% will originate from the variable term.

In practice, it will assume that all domestic users will have a rate similar to the current hourly discrimination.

To “maintain balance with other energy policy priorities”, a fixed portion of the charges is maintained. In this way, the incentive for the electrification of energy end uses remains, encouraging, for example, the use of heat pumps, which can be cheaper and cleaner than other options based on fossil fuels.

Additionally, the proposed resolution approving the new format of the electricity bill for consumers covered by the Voluntary Price for Small Consumer (PVPC) is also submitted to a hearing, with the same terms and the same means of participation. the minimum content of the bill of consumers with less than 15 kW of contracted power.

This new format is necessary to reflect in the invoice the division of the current access tolls in the network tolls, approved by the CNMC, and the charges, approved by the Government, “taking advantage of the occasion to reduce the extension and complexity of the herself ”.

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