What is the VPSC?

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What is the VPSC?


The VPSC or Voluntary Price for Small Customer, is the system for establishing the price of electricity introduced by the government for customers in the regulated market (customers that have a contract with a Reference Reseller Company – in case of Endesa - Endesa Energía XXI -), with a contracted power that does not exceed 10kW. On 28 March 2014 (Royal Decree) the VPSC tariff replaced the Last Resort Tariff (LRT).

With the entry into force of the VPSC, electricity bills still have three components:

  • The cost of producing electricity.
  • Access tolls, determined by the Ministry of Industry to cover all the activities related to supplying homes with electricity and other costs related to the electricity system.
  • Relevant taxes.

With the VPSC, only the way in which the cost of producing electricity varies.

What is the difference between the VPSC tariff and the old LRT tariff?

When the VPSC came into force, the quarterly auctions used until that point for establishing the price of energy disappeared. From then on, the price of electricity has been calculated by the Red Eléctrica Española (REE) on a daily basis according to the market’s hourly prices for energy.

With this system, the prices of electricity can change every hour according to the progress of the electricity market. In other words, the sum of your bills depends on factors such as climate or energy demands.

The change to VPSC took place automatically on 1 July 2014, so, if you had the LRT and you did not change anything, you will now have the VPSC tariff. (Royal Decree 216/2014 of 28 March).

How is the VPSC billing carried out?

This new system will be applied in two ways:

If you already have a Smart Meter connected to the remote management system

You will be billed according to your electricity consumption each hour, by applying the prices established by the energy market for that time. These prices are public and can be viewed from 20:15 h the day before via the REE website.

If you do not have a Smart Meter yet or it is not connected to the remote management system

As your exact hourly consumption details are not available, you will be billed by applying the average consumer profile created by the Transmission system based on consumer behaviour patterns. These consumption profiles are updated on a regular basis and you can check them via the REE website.

All households should have a smart meter connected to the remote management system before 2019.

What options does the VPSC offer?

There are 3 options within the VPSC:

  1. General tariff

    A constant price curve is applied throughout the day, with it being slightly cheaper at night.

  2. Nocturnal tariff

    Two time periods are established, an On-peak period (daytime) and an Off-peak period (night time) offering very different electricity prices.

    On-peak period:
    Winter: From 12:00 a 22:00 h.
    Summer: From 13:00 a 23:00 h.

    Off-peak period:
    Winter: From 22:00 a 12:00 h.
    Summer: From 23:00 a 13:00 h.

  3. Super Off-peak Tariff

    Is a tariff that splits the day into three periods. The Super Off-peak period is from 01:00 h to 07:00 h designed to make charging electric vehicles more economical.

What are the options available for avoiding price variations?

If you want to avoid price variations, you have the following options:

  1. Open Market

    You can contract an Open Market tariff and enjoy all the benefits it offers:

    • Prices that are known in advance and that remain stable for at least one year.
    • More competitive prices.
    • You can enjoy additional products and services adapted to your needs.
    • No minimum commitment period or penalties.
  2. Fixed Price

    You can also contract the Annual Fixed Price with your Reference Reseller Company which will apply a fixed price that is established beforehand. Once this has been contracted, it does involve a minimum commitment period of 12 months.

Customers with Social Rate

If you have a Social Rate, the VPSC tariff will be applied with a 25% discount. For more information about how to benefit from the Social Rate, click here