As of June 1, 2021, the Ministry for Ecological Transition will establish the new charges and calculation methodologies in the electricity system(Circular 3/2020). The new charges will come into force simultaneously with the calculation of transmission and distribution tolls approved by the National Commission for Markets and Competition (CNMC).
What are electricity tariffs and how will they work from 2021?
Electricity tariffs are groups of prices that electricity companies establish to supply energy to their customers, whether they are homes or businesses.
As of the change in electricity tariffs in 2021, significant changes have been implemented, which consist of allowing the electricity bill to have a greater variable component (estimated at around 60% in companies). Many companies have expressed their doubts to us, asking us if with the new change they are going to pay more or if it is going to have an excessive impact on their final bill. The answer to this question is: IT DEPENDS. The repercussion will depend mainly on each company, type of activity and, above all, on their capacity to anticipate the change.
The new reform will favor those companies that know how to measure and are aware of their real consumption, knowing how to optimize their bills and contracted power and considerably favoring those that promote energy savings and efficiency in the organization.
However, some sectors will be more affected if they do not pay attention to the new tariff changes. Throughout this post, we will evaluate what the new tariffs mean, what type of companies will benefit from each of them and what energy saving measures can be adopted in view of the new tariff system.
Types of electricity tariffs 2021 and their characteristics in SMEs and Large Companies
From Tariff 3.0 A to Tariff 3.0 TD at low voltage
What was previously known as Tariff 3.0 A is now called Tariff 3.0 TD, which applies to all energy consumers with power over 15 kW. The main change of this system consists in the variation of periods, going from having 3 periods (valley, flat and peak) to 6 periods in energy and contracted power. Let's see below a small comparison:
- Electricity rates before June 1: The tariff system consisted of 3 periods, with the most expensive time periods being in winter from 18:00 to 22:00h and in summer from 11:00 to 15:00h.
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- Electricity tariffs after June 1st: Energy prices will behave under 6 periods as in high voltage, which produces a considerable variation in the price of electricity depending on the month, time of day in which the energy is consumed and the place where we are (Peninsula, Balearic and Canary Islands). The following table shows the distribution of the different periods applicable on the mainland:
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Based on the table above, we can see how the number of hours in which the price of electricity is more expensive increases throughout the year. This can cause a headache for those companies that do not have a control of their consumption, showing difficulties on how to adjust their power without this having a significant impact on their final bill. By way of summary, the following main sections can be observed in the 2021 electricity tariffs:
From Tariff 3.1 A to Tariff 6.1 TD in high voltage (Power > 451 kW)
This electricity tariff is aimed at large energy consumers (large industry, generation plants...), with a power exceeding 451 kW. The well-known tariff 3.1 A will become tariff 6.1 TD under the new tariff system.
For this type of energy consumers, 6 periods and the criterion of increasing power are maintained as before, with the difference that there are variations in the price of electricity in different time periods as in the 3.0 TD tariff. The most noteworthy data in this respect are as follows:
- June is no longer divided into first and second fortnight. Energy is distributed evenly throughout the month, at a slightly higher cost, between the periods 09:00 - 14:00h and 18:00 - 22:00h.
- August is no longer the month of the cheapest energy (until now, the whole month of August was at P6). With the new tariff system, it is equal to the same level as the months of March, June and September.
On the other hand, capacitive energy will be penalized during the P6 tranches, as long as the kVAch consumption does not exceed 20% of the kWh consumption.
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Increasing power criterion in the new electricity tariff system 2021
On the other hand, the contracting of the powers in the 6 periods must comply with the following rule of increasing powers:
P1 ⦤ P2 ⦤ P3 ⦤ P4 ⦤ P4 ⦤ P5 ⦤ P6
This means that the contracted power in period P6 must be higher than the contracted power in P5 and so on, successively, until reaching P1. Without forgetting that we have gone from 3 to 6 periods, we observe a major change with respect to the current system of rules. Let's see it in an illustrative way with an example:
Let us imagine a company that currently has contracted the following power in 3 periods:
P1= 30 kW / P2 = 20 kW / P3 =10 kW
As we have seen throughout the post, in the case that no new powers have been calculated and/or negotiated with the electric company, these 3 periods would automatically become 6 as follows:
P1 = 30 kW / P2 = 20 kW / P3 = 20 kW / P4 = 20 kW / P5 = 20 kW / P6 = 20 kW
What criteria have been used under the new electricity tariff system?
- The current P1 will remain P1 in the new tariff.
- Current P2 will become P2, P3, P4 and P5.
- P3 will become P6. Complying with the criterion of increasing power, it can be different from the current P3 and would become the highest contracted (in our case, we have gone from 10 kW to 20 kW).
- It will no longer be allowed to contract a power of less than 15 kW in a given period.
As we can see in the previous example, those companies that have not anticipated the change and have reviewed their energy consumption and power, will notice a final increase in their bill with a totally misaligned system. In addition, the contracted power can only be changed free of charge once a year, so each case should be studied in detail to try to avoid surprises.
New system of penalties for excess power
For those companies consuming between 15 kW and 50 kW (small commercial premises, communities of owners, offices...) will continue with the current maximeter penalty system.
The real change is reflected for those companies that have a power between 50 kW and 450 kW (hotels, residences, shopping centers, supermarkets, universities...). In this type of energy consumers, the penalty system becomes quarter hourly, as well as high voltage consumers:
This telemetry system collects the organization's consumption every 15 minutes, calculating the average power used during that quarter of an hour. If this average turns out to be higher than the contracted power for that period, the penalty for that quarter of an hour will be applied.
The main advantage of this system is that we can accurately measure those times of the year when each kW is consumed. If, in addition, we have an energy monitoring system, we can evaluate at what times we exceed the contracted power, when we are consuming less than what we have contracted for that period and evaluate in detail our history and behavior. In this post, we tell you the first steps you need to take to start monitoring your energy.
Our AI-based energy management system allows you to predict your energy consumption even when no data has been recorded.
In addition to this new penalty system, the CNMC has considerably increased the calculation coefficients for excess power, so that penalties for excess power will be much more aggressive than the current ones.
Inductive reactive energy will be penalized in a similar way as it is done now (if the reactive energy is less than 33% of the active energy used, the penalty will be established), with the difference that it will go from being penalized in P1 and P2 electricity tariff brackets to being penalized in P1, P2, P3, P4 and P5.
5 tips to optimize energy consumption and reduce electricity bills
- Take advantage of natural light: make sure that the switches are turned off at times when you can take advantage of sunlight.
- Insulate your office well: everything you invest in a good insulation system will be what you save in air conditioning.
- Control air conditioning and heating: maintain an adequate temperature and use timers to avoid forgetfulness.
- Unplug electronic devices: some devices remain on standby even when you turn them off, so be sure to unplug them using plugs or power strips.
- Find advice and support on energy efficiency: at Smarkia we are experts in energy efficiency and we have multiple options for you to save on your electricity bill and be more efficient.
Final conclusions on the new electricity tariffs in companies
As we have been able to observe throughout the post, the new electricity tariff system will affect more to the companies that are under the tariff 3.0 TD, changing from 3 to 6 hourly periods with increasing power criteria and with a new system of penalties quarter hours in all those of more than 50 kW (hotels, shopping centers, universities...).
In addition, the most expensive periods have increased compared to the previous tariff system, being concentrated from Monday to Friday and, in particular, in the months of January, February, July and December.
Those companies that, due to their characteristics, concentrate their activity on weekends, holidays and summer months (mainly in the tourism sector), may benefit from the new system. However, those whose activity is constant during all the months of the year, focused on Monday to Friday (offices, educational centers...) will have to be much more aware of their energy consumption and how they distribute it throughout the year, since a large increase is expected in the new tariff that will directly affect the energy consumed.
In the next post, we will discuss in more detail what energy saving measures can be taken in view of the new system and its impact on the different sectors. Subscribe to our newsletter to stay up to date with all the latest news.
