Billing based on real readings means that your Reseller Company is going to bill your electricity or gas consumption based on what you have used according to the actual reading on your supply meter.
The Distributing company is responsible for recording the meter reading.
If you submitted your meter reading and it does not correspond to the consumption shown on your bill, it is likely that your reading did not arrive in time to use when issuing your bill.
If we are billing you based upon actual readings, it is not necessary that you provide us with your reading. If you would like to do so regardless, you must enter your reading within 10 business days prior to the next billing period. However, if we have an actual reading available the estimate will not be valid for billing.
If for any reason the agent was unable to take the actual reading from your meter, you will have 60 days to provide it. Once this time has transpired, your bill will be based on an estimated reading.
Since Royal Decree 1718/2012 of December 28th went into effect on April 1st, 2013, billing of all low voltage energy supplies with a contracted capacity of no more than 15kW is bimonthly and based upon actual readings. Consumption estimates are thus eliminated from bills.
However, if for some reason we have been unable to bill you based upon real readings, and we estimate the reading incorrectly, there's no reason to worry. The difference between the real and estimated reading is always regulated in subsequent bills, at no additional cost to the customer.
From April 1, 2013, onwards, in application of all that established by Royal Decree 1718/2012, December 28th, billing for all low voltage energy supplies with a contracted capacity of no more than 15 kW will be bi-monthly and with actual readings. Consumption estimates on bills are thusly eliminated.
However, it may be the case that your meter is not accessible for reading. In this case, the Distributing Company will leave a notice at your home giving you contact options so that you can provide us with your meter reading.
You can enter your reading conveniently, quickly and easily using the Enter Reading option.
30% of the amount that appears on your electricity bill is used to pay for the energy you consume. The price of this energy is fixed every three months at an auction which is supervised by the National Markets and Competition Commission, and in which more than 20 national and international companies take part.
Power generation firms take part in the auction with a level of activity that represents less than 11% of the market. The remaining agents include operators specialised in trading, such as investment banks for example, in addition to power companies with production abroad.
Costs of the power distribution grid.
4% of the amount billed covers the cost of building and maintaining the very high power lines, owned by Red Eléctrica de España, a company with a State holding that transports the electricity from the power stations to the distribution centres.
Another 10% of the bill goes towards the costs of building and maintaining the high, medium and low voltage power lines, which belong to private distributors and which finally carry the electricity to supply points such as households, factories, and other work centres.
The bill shows other costs not directly related to the provision of electricity: direct and indirect taxes, subsidies and payment of the rate deficit.
Which taxes are included in the electricity bill?
Currently two types of taxes are paid directly on your electricity bill. On the one hand, VAT, which for electricity is set at the maximum rate of 21%. On the other hand, the Electricity Tax, used to finance the Autonomous Communities.
The sum total of all these taxes represents 29% of the electricity bill, which is much more than the standard 21% VAT.
What are the subsidies for renewable energies?
Subsidies for renewable energies represent more than €18 out of every €100 paid on the electricity bill.
What is the rate deficit? What is the annual fee for the rate deficit?
The rate deficit is the difference between the real cost of power production, distribution and delivery and the price paid by consumers through their electricity bill, which is less, and consequently, does not cover that real cost. Through a Government decision, this difference is paid for “in instalments” and is reflected in the electricity bills of following years, with their price, therefore, increasing.
Currently, payment is still outstanding on a deficit of 26 million euros accumulated over preceding years. In 2013, an additional deficit has been generated to date in the amount of almost 4.5 million euros, although the Government hopes that once all of the year’s costs and revenues have been accounted for, this figure will decrease to just 3.6 million. The Government has adopted different measures in order to correct the disparity by sharing the burden among electricity firms, special regime producers (solar, wind, etc.,) and consumers.
The higher the accumulated deficit, the higher this amount is. In 2013, it has meant almost 3 million euros, which represents more than €5 out of every €100 paid by domestic customers on their bill.
Other charges on the bill, like the non-mainland systems: Ceuta, Melilla, Canary Islands and Balearic Isles.
Since 2005, the average electricity bill has increased by 71%. Therefore, a customer who paid €59 that year will currently be paying €100, although the items that the bill includes have not all raised by the same amount. Let’s take a look at how the different components have evolved:
The components associated to the power supply, which include the cost of energy in addition to its distribution and delivery to the end consumer, have risen by 12% since 2005, while the overall cost of living in that same period has risen by 24.3%.
However, the increases in taxes and other charges not directly related to the electricity supply (such as subsidies for renewables, payment of the accumulated deficit, or taxes included in the electricity bill), have increased by 189% since 2005.
The price of electricity is determined by two components. On the one hand, the regulated component is determined by the Government, which sets the electricity toll fees that cover the costs corresponding to transport and distribution, subsidies for renewable energy, and amortisation of the tariff deficit, in addition to other costs such as the discount rate for lower income families.
On the other hand, the liberalised component covers the cost of energy, which is established at the CESUR auctions: quarterly auctions in which more than 20 national and international companies, involved in power generation and trading, take part.
The described energy costs are not reflected directly and explicitly in the electricity bill; instead they are distributed among the items which the electricity bill does reflect.
Thus, the terms rating and energy incorporate all the costs corresponding to the energy generated, construction and maintenance of the transport and distribution grids, subsidies for renewables and the annual payment of the tariff deficit, among others.
Finally, the taxes heading includes the amounts corresponding to VAT and to the Electricity Tax.
The energy auction called CESUR is run by OMIE (the Operator of the Iberian Energy Market - Spanish Pole) and is supervised by the National Markets and Competition Commission (CNMC).
This auction is held every three months, and its price is used to establish the tariff that consumers with the last resort tariff will pay. At this auction, the buyers are last resort traders, and the sellers are financial institutions, or national as well as international companies involved in electricity generation or trading.
Several weeks before the auction, the last resort traders give the CNMC their forecasts of their customers’ consumption for the following quarter. The CNMC analyses this information together with the Ministry of Industry, deciding how much energy will be bought at the auction, and publishing a Resolution convening the auction and stating the date of the auction and the amount of energy intended for purchase.
Companies interested in participating as sellers must be previously accredited by the auction Administrator (OMIE).
The Administrator establishes the starting price, and sellers bid for the amount that they are prepared to sell at that price. The total sum of these bids (energy offered) is greater than the energy auctioned (intended for purchase). At this point, a series of rounds begin at which first the Administrator reduces the price, and then the sellers adjust their bids downwards (reduce the amount of energy that they offer). At the end of each round, the Administrator compares the energy offered with that intended for sale, and if there is still a surplus on offer, a new round begins.
The process, which tends to last several hours, ends when there is no surplus offer. At that moment, the price of the auction is the one defined by the Administrator during the last round and every seller is bound to sell the quantity that they bid for during that last round.
In the last five 5 years, the electricity bill in Spain has risen by more than the average in Europe.
It is often said that Spain has the third most expensive electricity in Europe, behind just Cyprus and Ireland. However, this conclusion is the result of a mistaken comparison, which is not tax-inclusive. In many European countries, subsidies for renewables are not included in the power supply bill as occurs in Spain, and are paid for through other taxes or fees. For this reason, the only equivalent comparison is one that is tax inclusive. For example, in Germany prices are more expensive because they include a fee for funding renewable power sources. Similarly, other countries such as Italy have higher prices than in Spain. These are precisely the countries that have an increased penetration rate of renewables and the highest volume of subsidies towards these sources of power. At the other extreme, we have countries such as France, with energy prices below the Euro Zone average, due to a more balanced generation mix with stronger weight on lower priced energy sources such as nuclear and hydro.
Beginning on July 1st there will be two changes to your bill:
You will be billed according to the new calculation method.
In the first bill issued, we will incorporate two new items to regularise the amounts billed for the first quarter and for the transitory period (second quarter):
A return with the amount resulting from applying the difference between the price billed and the real electricity price for the first quarter of 2014 (which was lower than that billed) to the consumption made during the period.
In addition, a charge or return on your bill with the amount resulting from applying the difference between the price billed and the real electricity price for the second quarter of 2014 (which may be lower or higher than that billed) to the consumption made during the period.
On the other hand, no change will occur in the billing period and billing will be done with real meter readings, as is currently the case.
The power charge item, in both its calculation method and in its review, shows no variation relative to what has been applied up until now (in accordance with the legislation in force).
In the following, we explain to you how to sign upfor new electricity and gas supplies.
Registration costs for a new supply
The contract amount depends upon the characteristics of the supply point for which said contract is going to be signed.
The costs of activating a new electricity supply, and of re-activating a supply not used for more than 3 years, are set forth in Royal Decree 1995/2000, December 1st. Said costs are also associated with items relating to the new contracting and will come included in the bill. These items are:
Access Rights: will be charged when contracting a new supply, or for capacity expansion of an existing supply.
Expansion Rights: will be charged when the infrastructure of a Distributing Company is used, when contracted capacity is expanded for already existing rights, or if the supply point has not been used for more than 3 years.
Coupling Rights: will be charged at the time when your electrical installation is connected to the supply grid.
Verification Rights: will be charged when the review and testing of the state and regulatory technical conditions of the customer's installation is carried out.
Other contracting expenses associated with the purchase and installation of meter equipment, the charge of a deposit, fees, etc. may exists. In the case of the deposit, the amount paid will be reimbursed upon payment of the final bill prior to contract termination.
Registration costs for a new gas supply
The costs of activating a new gas supply or the costs of re-activating a supply not used for more than 5 years, are set forth in Royal Decree 1434/2002, December 14th. Said costs are also associated with items relating to the new contracting and are included in the bill. These items are:
Subscriber rights refers to the economic compensation charged by the gas Distributing Companies for carrying out the necessary installations and/or operations to set up a new gas supply point or to expand the capacity of an existing supply point.
In the case that a supply contract is terminated, the subscriber rights will continue for the supply or consumption points that were paid during a period of 5 years.
Registration rights refer to the economic compensation received by the gas Distributing Companies when a new user signs up up for a piped gas supply service. The Distributing Company will inspect the reception facility, once notice has been received from the authorized installer. The Company will then proceed to install and seal the user's measurement equipment.
Registration rights apply to new supplies and to the expansion of existing supplies. These rights include coupling services and installation verification.
Smarter: Allow for remote readings of consumption and operations.
More flexible: Allow for contracted rates to be adapted to consumption habits.
More efficient: Allow for information regarding consumption to be provided in order to facilitate savings and responsible energy use.
Having a Remotely Managed Meter installed does not mean you have a remote reading system activated. From February 2014 onwards, the Distributing Companies have begun to send Endesa Energy XXI information regarding customers who have a Remotely Managed Meter with remote reading enabled, in order to carry out monthly billing with actual readings as is established in Royal Decree 1718/2012 of December 28th
The acronym CUPS corresponds to Universal Supply Point. This is a unique code that identifies the energy supply point. It begins with the sequence "ES" and is followed by 20 or 22 other characters, symbols or letter, based upon whether the CUPS refers to an Electricity Supply Point (20 characters) or a Gas Supply Point (22 characters). It has been created with the aim of identifying each supplier.
These are some examples of energy company bills. In them, you can check the capacity that you currently have contracted:
According to Royal Decree 1718/2012, December 28th, the change is mandatory. Furthermore, here at Endesa Energía, XXI, we believe this to be a positive change, since bills with estimated readings will no longer be issued.
From April 1, 2013 onwards you'll receive bills every two months, always using actual readings.
Having a Remotely Managed Meter installed does not necessarily mean that your meter can be read remotely. Remote management includes the ability to carry out remote reading. This capability will be activated gradually, meaning that it is possible to have a Remotely Managed Meter installed that is not activated for remote reading.
As soon as the Distributing Company alerts us that you have a Remotely Managed Meter with remote reading activated, we'll begin billing you monthly with actual readings.
The VPSC term is the electricity rate that replaces the LRT starting on April 1, 2014 according to Royal Decree 216/2014 of March 28th.
The Government establishes certain measures on the electricity price to be billed by the Reference Marketing Companies, and a new method to calculate the electricity price to be billed to each customer.
This price is calculated daily by the Spanish Electricity Grid (in Spanish, REE), based on:
The energy prices per hour on the market.
Applying the average consumer profile.
Actual daily energy market prices are used, and not a quarterly price as before.
However, it must be taken into account that the prices vary on the daily energy market, which means that with this new calculation method these variations will be reflected in a different final price on each electricity bill.
The Reference Marketing Companies will offer an electricity price that is fixed for one year, although variations in regulated components (tolls) and in the IPC will apply. This solution will be offered to customers as of April 20, 2014. All related information will be posted on the National Commission of Markets and Competition website www.cnmc.es.
On the other hand, this alternative also implies:
Greater complexity in contracting and yearly renewal
Minimum one year contract permanency commitment with the VPSC fixed, with a possibility of penalization in the customer requests cancellation prior to the end of the first year.
You cannot take out additional products or services during that year.
In the case of rate discrimination the average consumer profile will be used, applied to this rate's different timeslots. It will be applied to both peak (highest electricity price) and off-peak (lowest electricity price) hours.
The energy charge refers to the price paid for the energy you consume. It is a variable cost depending on your consumption.
The amount billed for this item is the result of multiplying the energy consumed during the corresponding billing period, by the price of the energy charge, which depends on the rate or product you have contracted.
You must check whether the first number in the heading of the Economic Activities Tax (in Spanish, Impuesto de Actividades Económicas [IAE]) corresponds to divisions 1, 2, 3 or 4*.
*1.- Energy and water, except in electrical energy production groupings / 2.- Extraction and processing of non-energetic minerals and derived products. Chemical industry / 3. - Metal processing industries: precision mechanics / 4.- Other manufacturing industries, that receive natural gas in industrial complexes, regardless of the purpose of the use. Natural gas used for useful thermal energy for exterior buildings not of an industrial nature is not considered industrial use (houses, hospitals, shopping centres).
Once this information has been confirmed , and if it corresponds to one of the aforementioned divisions, the new norm must be applied: Royal Decree 10/41/2013 of December 27th, which specifies that in order for your supply to be benefited by this tax reduction, you must obligatorily communicate this professional use to the Reseller Company.
You must then send a copy of the communication to the special taxes manager at the Spanish Taxation Office (AEAT) corresponding to the address where the installation is located in which the natural gas is consumed.
If your gas consumption is for industrial use and a general tax (€0.00234/kWh) is being applied to you, this is most likely not an error. In order to apply the reduced tax and in compliance with the in force legislation, you must communicate to us that your gas supply is for professional use with strictly industrials ends.
To do this:
You must send a copy of the communication to the office manager at the Spanish Taxation Office (AEAT) corresponding to the address where the installation is located that consumes the natural gas.
If you like, you can also communicate to the e-mail email@example.com; indicating the contract number, NIF/CIF, CUPS and supply point address.
From this time, as long as there is no new communication to this respect, the information you have provided will be taken as a reference.
According to Royal Decree 1718/2012 of December 28ththe field is mandatory. Furthermore, at Endesa Energy XXI we believe that this is a positive change since bills with estimated consumption will no longer be issued.
From April 1, 2013 onwards you will receive your bills every 2 months (bi-monthly) always with real readings.
Yes, unless the meter is not accessible for reading. In this case the Distributing Company will leave a notice in your home giving you the contact methods to provide the reading. This will avoid accumulation of your home's electricity consumption, which can lead to higher than normal bills.
Firstly, please note that bills are issued every two months based on actual readings, which enables you to check and control your actual consumption without being subject to estimations.
Monthly reading is carried out by inter-calculating real readings with estimated ones. Estimations are made based upon the customer's consumption history, and it is quite possible that they are exact; any variation up or down will thus need to be regularized afterwards.
Additionally, two-monthly billing with an actual reading enables you to defer payment of your consumption an additional month.
Be informed however that this service - re-activation of the monthly bill - will be available beginning in July 2013 for customers with a Remotely Managed Meter who also have remote system reading activated. Learn more(link to monthly billing for Remote Management content)
Remember that the power term is the price you pay for electrical power contracted for your installation. Not dependent on consumption, is a fixed cost.
The final amount of your electricity bill depends on the contracted power and consumption, therefore, that raises the price of the capacity will not always mean an increase in your electricity bill, as it depends also the price of energy term.
In this sense, if the price goes the power term or fixed but lower the price of energy term or variable:
Homes or premises with low electricity consumption will see increased electricity bill.
Homes or premises with increased consumption of electricity, may experience a reduction in the amount of its electricity bill.