This is a part of the price that you pay for contracted or fixed capacity and for consumption on your electricity and gas bill. This amount goes primarily towards infrastructure maintenance that allows electricity and gas to be carried from the point of origin to your home.
This part of the price is set by the Government and is same for all companies and throughout the national territory.
Normally updated via publication in the Official State Gazette (BOE) once per year, although on occasion this may occur at other times.
Rental prices for the measurement and control (meter) equipment are also controlled, along with electricity taxes, hydrocarbons (for gas), VAT, GICIT, etc.
The norm for all companies is that, when a change occurs for any of the regulated components, this is conveyed to the customer, whether it is an increase or a decrease.
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.
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.
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.
In compliance with the in-force legislation (Law 15/2012 of December 27th), beginning of January 1, 2013, all gas Reseller Companies have included a new tax on the gas bill.
The amount of the tax is different if the gas consumption is directed towards strictly industrialuses.
General tax of €0.00234/kWh: applied to the large majority of consumers.
Reduced tax of €0.00054/kWh: applied to those gas consumers whose use is strictly industrial.
For this reduced tax to be applied to industrial supplies, documentary justification of the Spanish Business Activities Tax (in Spanish, Impuesto de Actividades Económicas [IAE]) or the document where this appears and which includes the first number of the heading of any of the numbers 1, 2, 3 or 4, is obligatory.
(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).
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.
Remember that the capacity term is the price that you pay for the contracted electrical capacity for your installation. This does not depend upon consumption. It is a fixed cost.
The final price of your electricity bill depends on both the capacity contracted and consumption. Thus, the fact that the capacity term increases will not always signify an increase in your electricity bill, since this also depends upon the energy term price.
In this way, if the price of the capacity or fixed term rises but the energy or variable term drops:
Homes or businesses with a low electricity consumption will see their electricity bill increase.
Homes or businesses with a higher electricity consumption may see a reduction in the final price of their electricity bill.
From April 1, 2013 onwards, and in application of that set forth in Royal Decree 1718/2012, December 28th, billing for all contracted low voltage energy supplies of no more than 15kW, will be bi-monthly and with actual readings. In this way, estimates regarding consumption on your bill will be eliminated.
However, if for some reason we have been unable to bill you using real readings, and we have calculated your reading incorrectly, there's no need to worry. The difference between real readings and estimated readings is regularized in the subsequent bills, at no additional cost to the customer.
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.
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.
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.