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Electricity price shock

9.5K views 58 replies 13 participants last post by  Barriej  
#1 ·
I've just received my August electricity bill from Iberdrola and was shocked to find that it is €100 more than I expected due to a new charge that has suddenly appeared: "Tope precio de gas €106,06." I have checked back on previous bills and this has never appeared before. As I don't have a gas supply from Iberdrola, or any other company for that matter, I am assuming this must be an error. Anybody else had this?
 
#2 · (Edited)
It is charged per kwh of electricity consumed, so the more electricity someone uses, the higher the amount of this new charge they will pay. It should only be charged to consumers who signed a new free market contract, or renewed one, after 26 April 2022. Tt is to compensate the energy companies for the difference between the cap the Government has imposed on gas used to generate electricity, and what the energy companies have to pay in the wholesale market.

https://www.elespanol.com/eldigitalcast ... 68_12.html

The worst thing about it is that the tope del gas charge is variable according to the wholesale market prices, so people who thought they had signed up for a fixed rate contract now have no idea how much they are going to be paying from one month to the next. So the Government's claim to have lowered electricity bills by this new mechanism is no more than a con trick, as they are making consumers pay for it. More and more people are going to be dragged into paying it each month, as their existing contracts become due for renewal.

There are an increasing number of articles in the Spanish press about this.

El 'beneficioso' tope al gas del Gobierno sube en 30€ de media la factura de la luz (lainformacion.com)

El tope de gas: el Gobierno introduce un nuevo concepto en la factura de la luz que dispara todavía más su precio - Libre Mercado

Plus, of course, the Government is collecting 5% IVA on this new charge so clawing back a lot of the 5% reduction applied on what the bills would otherwise have been. Good trick, no?
 
#15 ·
#20 ·
I think the key element is the end date of your existing contract. This date is included in the "Additional Information" section of your bill. My contract expires on 28-10-2022.

My Iberdrola contract has a footnote which states: "The new charge established by the Government to finance gas will not apply to you as long as you are with Iberdrola and maintain your current prices plan, until its termination, renewal or extension".

So I anticipate increased charges post October.
 
#22 ·
As a slight derail, may I ask if anybode has been able to establish the difference between the 3 time bands when it comes to electricity consumed? My Energia xxi monthly bill only shows the transport costs for each band but the cunsumed electricity is simply lumped together. I know the tarrifs vary on a daily basis but it would still be good to know if its worth the hassle of starting the dishwasher after midnight. Or maybe its impossible to tell as the offpeak tarrif might be higher than the peak tarrif from the following day.
 
#26 ·
Ive just had our September bill and no added for the gas.
Although my electric contract is for 100% green so I would not have expected to see the charge anyway.
The bill states the same as the one I posted before, saying because of my contract I wont be billed for this.

Only advice I can give to anyone who if thinking of a contract change, go green.
Look for a plan that gives 100% renewable generated electric and that way there should be no reason to charge you the gas tax as it were.
 
#25 ·
By the way, with Naturgy, I'm on a 3 years contract called "Por uso". I called a few days ago to ask what the 12 months duration that appears on the online contracts area, And they said:

Your contract duration is a 3 years one BUT, every 12 months gets renewed with the same terms, but any change in government laws, the new charges will get applied, like for example the "tope of gas".

So, I should be fine until March next year. She also told me that the "tope of gas" is supposed to run until April next year. But who knows if it's going to be extended.

Coming back to the contract I signed, after the 36 months bit, it says "Asimismo, podrán trasladarse al precio cualquier concepto regulado, tasa o impuesto de nueva creación o que sustituyan a los actuales que sean de aplicación durante el periodo de duración del presente contrato". I understand they can apply at any point any government change in tax.

And to understand why they are going to apply the tope of gas after 12 months, I also found this on the contract:

"En Gas: Mantiene el precio del kWh de la energía contratada estable durante 12 meses, y otorga un descuento cada año sobre el término variable, compatible con otras ofertas y promociones. Válida para tarifas RL.1, RL.2, RL.3 y RLPS.1, RLPS.2, RLPS.3."

I've no gas contracted, but I'm guessing they are taking advantage of this clause, because the government is charging us for the use of gas to produce electricity...

Nevertheless, if this tope of gas still exists after April, I will probably make a formal complain (I'll find out where), as I don't want to be charged for this...

One latest thing. If this tope of gas wasn't being applied, our electricity bills will much MUCH MUCH higher than they are even with the tope of gas. It's not an invention of the government. Before the tope of gas, it didn't matter how much it was the real cost of generating electricity, the price applied was the higher of all different types of generation, on this case, GAS. This is not the case anymore, but the gas still costs a lot of money, and you can't just tell the companies, if you buy gas for 600 to generate electricity, you will charge your clients 200. That difference from 200 to 600, is what is spread on everybody's bills (Aside of the lucky ones we have contracts not updating soon). But electricity generated by any other source is much much cheaper than before.

My GUESS is that, companies that generates a lot of electricity with more GAS, will apply a higher tope of gas to their clients. No idea about individual contracts, if for example, you are supposed to be on a 100% renovable tariff.

Don't trust to some newspapers, as they twist the truth a lot. And some just like to lie!I recommend going directly to the real numbers, and the laws.
 
#33 ·
B

My GUESS is that, companies that generates a lot of electricity with more GAS, will apply a higher tope of gas to their clients. No idea about individual contracts, if for example, you are supposed to be on a 100% renovable tariff.
The following statement appears on my electricity bills from Iberdrola

"Le informamos que la energia consumida es 100% renovable, certificada con Garantias de Origen emitidas por la CNMC"

So being on a 100% renovable tariff does not exempt customers from being subject to this charge.
 
#30 ·
29 euros electricity consumption is very small - wouldn't that be about 90kwh? Is that how much you used to run your apartment in August?.Mine is about the same but I have just a small one bed- no AC and no fans- just hob,fridge, ( no water heater in the summer). I really can't afford to use more as my salary is the same as 2016( the idea of a wage rise in spain is pure fantasy). Still I think the government have reduced the IVA on electricity to 5% until January so hopefully that will help. Its getting really tough now. Just been to market where 1 kilo of juicing oranges is a euro - which was 90 cents two weeks ago. Everyone was talking about the price rises and that's in the market!!
 
#40 ·
Just got my bill after the contract auto-renewed...

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I was so happy that I got a fixed kWh contract just before the prices went up and now the price for my consumption is double! It's pretty incredible that you can sign a contract with fixed potencia and fixed kWh price and they can just load the bill somewhere else. I guess they will say I'm free to find another contract but now they will all have the tope added.
 
#42 ·
Yes, exactly. Having a fixed rate contract means nothing since the introduction of the tope de gas charge. I really don't like the fact that now I have no idea how much my bill is going to be from one month to the next because the tope de gas isn't even a fixed amount, it is different every month.
 
#41 ·
I wouldn't complain as 50 euros for 104 kwh is pretty good in the present time. You wont find a cheaper fixed tariff if you change and you will still have theTope. Most people will find that at some point between now and end of may they get hit by the Tope de Gas. Lets hope it finishes then or else we will be in for a real shock!!
 
#44 ·
There is also, of course, another new (albeit much smaller) charge which has recently appeared on consumers' bills - Regularizacion Financiacion BS (appears on the bill Xgarb posted as an amount of €2.47). That effectively negates the reduction in electricity consumption tax from 5.11% to 0.5%, so again the Government "gives" with one hand and takes away with the other - at a time when they are collecting record and ever increasing amounts of tax in both IRPF and IVA, even taking into account the reduced IVA on energy bills.
 
#45 ·
Yes you are right. Unfortunately Spain has to reduce its consumption to assist EU to help us break our link with Russia. The war is steadily increasing the market price of energy worldwide. Together this means there is simply no way to reduce or even stabilise our energy bills without someone paying. The UK is pretending to be paying peoples bills by handouts etc but as seen today they are going to have a whopping 60 billion pound hole to fill which means slashing public spending. Spain are taking a more responsible ( well everyone is apart from UK) and trying to get us to consume less. The problem is the balance. I would say 1 person alone will struggle to pay less than 90kwh a month- unless they stop cooking and eat just cold food, microwave food uses little energy but is expensive- yet this one person now faces the increasing tope on their bill. I'm not sure how the Tope works so might be wrong. Does it kick in on all consumption amounts or only when you reach a certain level. I would think its fair to start it only when you reach a certain level depending on other factors.
 
#48 · (Edited)
It's always odd that on a Spanish electricity cost thread people seek to bring in the UK approach.

I have posted an article from the Telegraph which says that Germany's energy subsidy is very similar to the UK's and risks splitting any single EU approach into national initiatives. The post is subject to moderation.

Does anyone know if the Spanish utility tax system has any kind of safety net for the vulnerable?
 
#50 ·
#51 ·
Just had my latest bill from Iberdrola for mid September to mid October, and I'm glad to say the tope de gas charge is down to a much more reasonable €0.0870 per kwh this time (half what it was on the last bill).

I know that the theory is that it will reduce from 1 January onwards because from December the price cap on gas used to generate electricity will rise by a small amount each month until the present arrangement finishes at the end of May, so I hope that proves to be the case. But no-one knows what will happen to gas prices in the coming months, if they rise steeply then so will the tope de gas.
 
#52 ·
Just had my latest bill from Iberdrola for mid September to mid October, and I'm glad to say the tope de gas charge is down to a much more reasonable €0.0870 per kwh this time (half what it was on the last bill).
Mine is the same as last time

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Double the consumption price. I think the tope kWh price is my contract price without the discount I get. Maybe it varies with the type of contract you have.
 
#53 ·
Iberdrola issued my latest bill yesterday (for mid October to mid November) and the tope del gas charge looks very different - in a good way, it has very nearly disappeared!

The consumption charge was €24.93 (157.43 kwh at €0.158351 per kwh) and the tope del gas only €0.92 (€0.005817 per kwh). There is also a charge called Mecanismo ajuste Op Sistema RDL 10/2022 (I have no clue what that is but it doesn't really matter because it only amounts to €0.03).

So the whole bill only comes to €46.07 including the consumption, tope del gas, potencia charges, equipment rental, the bono social levy and the IVA. That is back to what a normal bill for us should look like at this time of year, the bills are always low in spring and autumn when we are using neither air conditioning/fans nor heating.

A friend of mine living in the ROI said the other day "are you sitting down, I've just had my electricity bill". Her bill was €546 so we seem to be doing pretty well in Spain.
 
#54 ·
Been staying in U.K for a few months where our usual monthly leccy bill with Octopus has been approx £60.00, however our latest bill which included the first of 6 Government energy discounts our bill was Zero, to be accurate they owe me 30p............so basically free leccy .............
 
#55 ·
Our bill arrived on the 17th and again no gas tope charge.
Or any other unexplained ones either.
Was bit higher than last month as my son and his partner were with us for two weeks and it was too hot for them so the air con and a fan were on... Wimps it only hit 28c one day...

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I will say this again and again. Find a plan that is 100% renewable and you cannot be charged for the tope even if your supplier uses gas to generate.

As a comparison, my son is now paying £180.00 a month on DD for a bedsit, he reads the meter each month and sends the reading in and this is the actual usage, not some computer generated amount. I hate to think how much he will pay over the winter..
 
#56 ·
I see that under the Regulatory Charges section you have the same small Adjustment mechanism system Op RDL 10/22 charge that appeared on my bill this month, I don't know what that is for but it's only pennies.

I have a 100% renewable energy contract but I suspect the reason why you aren't being charged the tope del gas is not because of that but because you took out your contract before April 2022 (unlike me) and it hasn't auto renewed since then, not because of the renewables thing.
 
#57 ·
This is what Iberdrola's website says about this mecanismo de ajuste RDL 10/22

  • "Mecanismo ajuste Operador del Sistema RDL 10/2022" que resulta de repartir el coste del mecanismo de ajuste en las liquidaciones que realice el Operador del Sistema. Se calculará multiplicado el consumo facturado por el coste horario del mecanismo publicado diariamente por REE, según el perfil inicial vigente de REE correspondiente a la tarifa de acceso del suministro.
I am not much the wiser but it is definitely something that is being charged to everybody, whether they have a 100% renewables contract or not.
 
#58 ·
On further investigation it appears that this Mecanismo de Ajuste RDL10/22 is, in fact, just a new name for the tope del gas! I do have a vague recollection of seeing an article in the press a few weeks ago that the Government had told the energy companies to use a new standard wording to describe it on bills, as they thought the fact that different companies were calling it different things was confusing. As I have both things appearing on my bill for this month, albeit the Mecanismo de ajuste charge is only €0.03, I presume the change in name has been applied from a certain date so the other €0.92 for tope del gas applies to the previous dates within the same billing period.

El impacto del mecanismo del "tope del gas" en las facturas de electricidad - CNMC Blog

So it has now started to appear on your Iberdrola bill, Barriej, albeit only very recently.