Spain promises the EU it will review the regulated electricity tariff

Madrid / BrusselsBrussels keeps the regulated electricity tariff in its sights – in our country technically known as PVPC (voluntary price for small consumers) – which some member states, including Spain, have. In fact, in 2023 the Spanish government already undertook a reform of this electricity bill modality because the Community executive demanded it. Pedro Sánchez's executive, however, firmly defends it, especially in a context of tension in energy prices like the current one, although it has committed to the European Commission to carry out an "in-depth" study to analyze its functioning and competition, as required by European regulations and confirmed by the third vice-president and minister for Ecological Transition, Sara Aagesen, in a statement to the media this Tuesday.

'in 2023 the Spanish government already undertook a reform of this electricity bill modalitypool

 fairly accurately – it is a market where energy is bought and sold every day, where electricity varies every hour of the day and every day of the year, and it does so according to supply and demand – and it complies with the objective of promoting the reduction of energy consumption among citizens and companies, as requested by the European regulations themselves. Furthermore, with the 2023 reform, which primarily sought more stable prices, a basket of futures prices was added to set the final price.

"We have committed to Brussels, after numerous discussions, that we will request the National Commission for Markets and Competition (CNMC) to conduct an in-depth study on the functioning of the retail market, and on the state of competition in this market so that all consumers feel protected", said Aagesen. "The current situation of the energy market is not suitable to say that the voluntary price for small consumers can disappear, but rather that it must continue and must continue for vulnerable and more vulnerable consumers, but also for all those consumers who wish to opt for this regulated tariff", reiterated the minister, who made it clear that "there is no forecast" for eliminating this tariff in Spain.

Be that as it may, Brussels is precisely urging Spain and the rest of the member states that opt for the regulated tariff to present a transition plan for an energy market without this state intervention. In fact, the Community executive is asking Moncloa for an evaluation and to present it in writing. In no case, however, does the European Commission indicate in this document that it is an obligation for Spain at this time to end the regulated tariff. Among the people who are covered by the regulated tariff are consumers who can benefit from the social electricity bonus (you can only opt for it if you are in the regulated market), but also domestic consumers (families) and small businesses (micro-enterprises).