The way to calculate the price of the regulated rate or PVPC will change in 2024
The way in which the price of electricity is calculated will change as of January 2024. Although this does not imply that consumers have to make any changes with their electricity company
The regulated tariff, known as the Small Consumer Voluntary Price (PVPC), will be calculated using a new calculation methodology that has been approved by the Royal Decree 446 / 2023, of June 13.
Until now, the PVPC rate was calculated based on the daily wholesale electricity market, which takes into account the cost of electricity production, access tolls, and marketing charges and costs.
Now, the new rate will take future markets into account, that is, taking into account the price of electricity in the purchase and sale contracts made for a future date.
As of January 1, 2024, future markets will be incorporated into the PVPC price calculation formula.
This will mean that in 2024 the price of electricity will be calculated with 25% of the future price and 75% of the daily price. In 2025 the PVPC would be calculated with 40% of the future price and the remaining 60% will be the daily price and finally in 2026 the daily market price will be considered 45% and the remaining 55% will be the future price.
The measure is adopted to avoid price spikes and offer greater stability in consumer bills. As the price of electricity is more stable, fixed price contracts for one month, three months or one year may be offered to consumers in the regulated market.
It will affect domestic consumers with a regulated rate and therefore vulnerable consumers who receive the electric and thermal social bonus, since, in order to have the social bonus, they must be covered by the PVPC or regulated market.
Consumers included in the free market will not be directly affected.
The new calculation of the PVPC rate will begin to be applied to bills from January 1, 2024, without the consumer having to make any request or change to their electricity company.
Update date: June 16, 2023