A new year begins and, with it, the uncertainty of knowing whether prices will continue to rise or maintain a certain stability as happened last year. In this case, there is news about the price of electricity and, with it, the changes that will be applied starting in January that will affect consumers’ pockets to a greater or lesser extent. If you want to know the new calculation of the regulated electricity rate, continue reading this article.
Approved last June by the Council of Ministers, the new regulated electricity tariff and its new PVPC (Small Consumer Voluntary Price) calculation system come into force on January 1 and will affect 8.5 million Spanish homes. , in such a way that consumers will continue to experience a stable price, although the bill will increase due to the increase in VAT and the Special Electricity Tax.
The new regulated rate formula
The new regulated electricity tariff introduces new changes in 2024 when calculating its price in order to reduce its instability and grant balanced prices throughout the year. In this way, the price of electricity was calculated based on the daily wholesale market, that is, a market where the price varies greatly, causing greater volatility in recent years, especially in the increases in the price of gas and fuel after the outbreak of the Ukrainian war.
Now the change is in the prices of forward markets, which will increase between 2024 and 2026 in a phased manner. This year, 75% of the regulated rate price will be set by the daily market, while the remaining 25% will be stipulated by installment prices. Starting in 2025, the representation of the forward market will be 40% and in 2026 it will increase to 55%. According to the Government, this entire process will take place to avoid ups and downs in the price of electricity and prevent this fluctuation from occurring.
It must be taken into account that this change will only affect all those who have contracted the PVPC rate, whose prices are regulated by the hour by the electricity market and supervised by the Ministry of Industry, Energy and Tourism. However, according to experts, this contract continues to be one of the most interesting for consumers, thanks to the fact that they can better manage their household chores, such as running the dishwasher or washing machine in cheaper periods of time.
VAT and electricity taxes rise
On the other hand, although the Government wants to impose measures to stabilize the price of electricity, there is no doubt that next month’s bills will increase due to the 10% VAT increase for this entire year, compared to 5%. of the previous period, and the increase in the Special Electricity Tax, which is calculated based on the power you have contracted. In order to combat inflation, the Government launched last year the reduction of this tax to 0.5% until December 31, 2023.
However, during the first quarter of 2024, the tax rate of the Special Electricity Tax will increase by 2.5% and during the second quarter by 3.8%. It is not known if the Executive will take action on the matter to reduce the cost of all these taxes again throughout 2024, but according to the Selectra portal, they will not involve exhaustive increases in bills.
