The government is moving toward a new system for calculating the regulated electricity rate, often referred to as PVPC. The aim is to protect the most vulnerable households and large families from sharp price spikes seen in recent months, ensuring a steadier, more predictable bill. This shift is part of a broader effort to cushion consumers from market volatility while maintaining a fair and transparent pricing framework. [Fuente: Ministerio de Transición Ecológica y el Reto Demográfico]
According to Cadena SER reporting and confirmed by the Ministry of Ecological Transition and the Democratic Struggle to Efe, the proposal departs from pricing electricity for a single day. Instead, the Administrator envisions using three distinct time references to calculate the rate: a monthly average, a quarterly average, and a yearly average. This approach allows the price to reflect a combination of short-term movements and longer-term trends, rather than reacting to a single day’s conditions. [Fuente: Ministerio de Transición Ecológica y el Reto Demográfico]
Those three references will not be treated equally. Each reference will carry a different weight in the final calculation, with the annual average receiving the heaviest emphasis, potentially accounting for up to 54 percent of the final rate. The design behind this weighting is to dampen abrupt shifts and produce a price that remains more stable over time, gradually smoothing out oscillations that can surprise households and businesses alike. [Fuente: Ministerio de Transición Ecológica y el Reto Demográfico]
The government envisions a phased introduction of the new system starting next year. The plan is to expand coverage so that by 2025 the new method reaches about one of every two households that fall under the regulated rate, roughly nine million users in Spain. The objective is to create a more predictable pricing path while still preserving a portion of the market where prices are determined by competition. [Fuente: Ministerio de Transición Ecológica y el Reto Demográfico]
Economic analyses prepared for the government indicate that the new formula, once fully implemented, could reduce the volatility of electricity costs. Public presentations of the model are expected to explain how the combined references and their weights translate into a rate that moves less erratically over time. The intention is not to fix prices rigidly but to provide a framework that accommodates fluctuations while offering greater certainty for families and households that rely on regulated pricing. [Fuente: Ministerio de Transición Ecológica y el Reto Demográfico]
As a practical example, the proposal anticipates that the usual intra-day spread between the cheapest and the most expensive price, which can reach significant levels during a single day, would narrow under the new system. Where daytime differences could previously approach a peak around 27 percent, the adjusted approach aims to reduce this volatility to a lower level, improving predictability for planning and budgeting. The overarching goal is to create a smoother trajectory for rates without eliminating flexibility entirely. [Fuente: Ministerio de Transición Ecológica y el Reto Demográfico]