The average userís light bill to increase by 4.8% in October

FACUA claim regulatory measures to ensure the Government is responsible for periodical tariff fixtures, decreases in electricity VAT and changes to the importance of the benefits scheme.

The average userís light bill to increase by 4.8% in October

The price of the electricity bill for the average user has suffered a monthly increase of 4.8% this October, even though it continues to be less than it was a year ago, according to FACUA-Consumers in Action’s analysis. As such, the invoice for last month with the semi-regulated PVPC tariff (Voluntary Price for the Small Consumer,according to its initials in Spanish -a tariff that has its price controlled by the Ministry of Industry, only available for those with an electricity power less than 10kW) amounted to 70.08 Euros, compared to September's 66.87 Euros.

The price of the electricity invoice for the average user was 79.79 Euros in January, 75.37 Euros in February, 72.39 Euros in March, 73.09 Euros in April, 70.97 Euros in May, 69.62 Euros in June, 71.82 Euros in July, 68.64 Euros in August, 66.87 Euros in August, 66.97 Euros in September, and 70.08 Euros in October.

The average bill so far this year has been around 72.11 Euros, 5.8% less than the amount for January-October last year (76.58 Euros). In the first ten months of 2017, the average bill was 74.63 Euros. In 2016, it was 65.90 Euros for the same period.

When carrying out its analysis, FACUA took into account the semi-regulated tariff (PVPC) in homes that come with meters that are not suitable for remote management. In regards to the average user profile, according to a FACUA study on tens of thousands of bills from occupied homes, the average consumption is 366 kWh a month with a contracted power of 4.4 kW.

FACUA's Demands

FACUA criticises that the large power companies' yearly earnings continue to skyrocket thanks to the passivity of the Government on the inflated tariffs. FACUA demands stronger measures are implemented to cut the price of the average electricity bill. FACUA demands intervention of the sector, in a way that would ensure the Government is responsible for periodically fixing the base rates for energy production and stop relying on an auction that facilitates speculation by large power companies.

The main measure that FACUA have proposed is the creation of a totally regulated tariff for all families that do not have more than 10 kW of contracted power and the determined consumption limits. The analysis conducted by FACUA's legal team exposes that with the due regulatory development, this formula would not cause contradictions to the European legislation. The disproportionate prices for energy supply, the sector's lack of understanding, and the economic situation of Spanish families all justify the creation of a fixed tariff, ensuring that the Government protects consumers.

The decrease in VAT for electricity is another of FACUA's demands. Decreasing it by 4% would have saved the average user 130 Euros last year. Before tax, the average user paid 728.15 Euros. The current VAT rate is 21% and that for electricity rose to 27.19%, meaning that the average bill in 2018 amounted to 926.16 Euros. With VAT at 4%, the increase in indirect tax would represent the 9.32% with which the amount will have decreased to 796.01 Euros.

FACUA also calls for changes to the benefits system, following the great failures of the approved models during the Administration of Zapatero, Rajoy, and Sánchez. At the moment, the benefits system does not guarantee significant discounts for the immense majority and is only available to those on excessively low incomes -except families with more than three children, that can benefit all.