Electricity prices and bill clarity are under scrutiny as regulators push for transparent explanations of how final charges are calculated. Teresa Ribera, the vice president and minister for Ecological Transition, voiced concerns in a weekend interview with La Razón about the lack of clarity in billing and the costs that drive the final amount. She emphasized the need for households to understand how each component adds up, especially when the Iberian mechanism and gas price caps influence the totals. The message from authorities is clear: consumers deserve straightforward, accountable billing that shows the real impact of policy decisions on their bills.
The government is moving to reform the design of electricity bills after receiving data deemed insufficiently transparent. The goal is to reduce the risk that power companies present biased information regarding how the Iberian exception affects the end price of electricity and the effect of the gas cap. The focus extends beyond the regulator to how information is presented in invoices and the tools used by customers to compare tariffs.
The National Markets and Competition Commission (CNMC) is tightening requirements on utility companies regarding invoice content. A recent resolution published in the Boletín Oficial del Estado requires firms to include new data about the components of the final electricity price and to increase the visibility of the tariff comparator for small customers. This move aims to make the price structure more understandable and easier to compare across providers.
Power failure
CNMC has warned that several firms are not fully complying with obligations established several months ago. In particular, customer data links and the electricity rate comparator are often not presented clearly on invoices, making it difficult for customers to access and interpret them when reviewing a bill. It is also noted that some marketers did not provide a direct link to their website on electronic invoices, which complicates access to additional information.
The commission, chaired by Cani Fernández, has called for the inclusion of a QR code on bills that links to the CNMC rate comparator. The QR should connect to the same data used in the customer’s contract and personal consumption, ensuring the comparator remains legible and accessible. The recommended size for the code is roughly the size of a 3 by 3 centimeter square, with a precise link directing customers to the comparator page, QR and all, on the invoice itself.
Further changes to the information that these links must provide are being implemented. The CNMC has removed some data while adding several new components, such as net charges related to the gas cap adjustment mechanism and information on social bonuses and financing discounts. Other items include the cost of bonds and various other adjustments. The commission has also rejected some claims advanced by electricity companies and has decided to maintain the regulated tariff (PVPC) within its price comparison tool, continuing to present a cost estimate despite ongoing criticisms. Marketers are required to implement these invoice changes within a specified period.
Government changes
The government signaled last week its intent to enact significant changes to the content of electricity bills as part of a broader contingency plan known as the Greater Energy Security Plan. The plan aims to address risks tied to geopolitical events and will be submitted to Brussels for review and alignment with European standards.
The Ministry of Ecological Transition has urged electricity companies to provide clearer information on how the Iberian exception impacts prices. This mechanism, in place since last June, caps the price of gas used in electricity generation to limit price rises. Some market participants have already included information on bill receipts about typical consumption costs and the extra charges necessary to recover gas power plant costs, though terminology has varied and some have even described compensation as a tax.
The government intends to standardize terminology across providers and to include information about what the market price would have been without the Iberian mechanism, highlighting the savings achieved for all customers. According to the ministry, the gas cap has saved more than 2.8 billion since mid-June by stabilizing electricity prices, including effects on gas-powered plants. Future invoices will feature practical tips for reducing consumption, boosting energy savings, and a neighborhood-wide average consumption comparator. They will also provide insights into demand trends and will present a coded postcard-like formula to encourage efficient electricity use.