Spanish Electricity And Gas Prices Set To Rise In 2024

In the wake of the government scaling back energy crisis relief aid and the latest update to the gas TUR, Spanish households are bracing for higher utility bills.

Electricity Bill Hike From January

On January 1, 2024, electricity and gas prices will see a noticeable increase. This development follows the government’s decision to not extend the household relief aid.

The VAT on electricity will jump from 5 per cent to 10 per cent, and the Regulated Tariff (TUR) on gas will rise to an average of 8.19 per cent. But what does this mean in terms of euros.

Understanding The Electricity Bill Increase

Amidst the clarity on the end of anti-crisis measures, Selectra has conducted a price comparison to illustrate the impact on future electricity bills. With VAT at 10 per cent, an average home consuming about 190 kWh at £0.12/kWh -free market price- can expect their bill to increase by 2 euros.

Annually, this equates to an approximate €25 increase, rising from €510 to €534 annually. If VAT returns to 21 per cent, the annual increase would be around €78 pounds. For those on regulated rates, the impact may be higher, depending on demand.

Gas Price Also Climbing

From January 1, the individual Last Resort Rate (TUR) for gas will rise by an average of 8.19 per cent, capped at a 15 per cent increase to mitigate more significant spikes.

This increase applies to the variable term of the TUR as well, with increases ranging from 5.17 per cent to 7 per cent.

For a typical TUR 1 customer (kitchen and domestic hot water), the increase will be 11.35 per cent on their annual bill, including taxes.

This is less than the 22.49 per cent hike that would have occurred with a VAT of 21 per cent. For TUR 2 customers (kitchen, domestic hot water, and heating), the increase will be 12.69 per cent, and for TUR 3 customers (SMEs), it will be 13.31 per cent.

What Is The TUR Of Gas?

The TUR for natural gas is a regulated rate available to consumers connected to the gas network with an annual consumption of up to 50,000 kWh. In October 2022, the government extended its application to include owner communities and energy service companies.