Spreading the cost of renewables among all energies will lower electricity by 14% and increase gas by 17%

The consulting firm AFRY and the large electricity companies see the National Fund for the Sustainability of the Electricity System (FNSSE) as necessary and positive.

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In just under five years, if the RDL is finally approved for the National Fund for the Sustainability of the Electricity System (FNSEE) with sufficient support in Parliament. To get ahead, the electric bill will be reduced up to a 14% for the domestic consumer but for the gas industry, its main raw material, the gas, it could go up to a 17%. But it wouldn’t be until 2026, year in which the FNSSE would be implemented 100%.

These are the main conclusions of a report commissioned by Aelec, the employers’ association of large electricity companies, AFRY Management Consulting, a consulting firm specialized in the energy sector. “There is no doubt, if you want to decarbonize the economy you have to bet on electrification and the polluter pays principle,” he said. Pedro González, director of Regulation and Energy Policy of Aelec in a meeting with the press.

This Law provides for the distribution of costs of renewables, cogeneration and waste among all energy sectors, that is, electricity and gas traders and wholesale distributors of petroleum products based on their energy sales.

Light, cheaper

According to the report prepared by AFRY, the effect of the FNSSE is uneven among the different electricity rates (from households to large industries), but in all of them there would be a significant decrease.

“In the first year of full application (2026) the FNSSE would mean for the domestic consumer a final price drop 14% electric with respect to a scenario where it will not apply“, Says the consultant. A barely visible difference for tariffs 6.1 and 6.4 corresponding to large electricity consumers.

Evolution of the price of electricity

Evolution of the price of electricity
AFRY Consulting

The report has calculated these figures assuming that the Government, once it approves the FNSSE, will permanently eliminate the 7% tax on generation (IVPEE), which is currently suspended until the end of the year, to try to stop the unprecedented rise in the price of The invoice of light.

“The IVPEE was created to help pay the tariff deficit and the costs of renewables, so we understand that if the FNSSE is approved, it makes no sense to maintain that tax that ultimately affects the final bill of electricity consumers,” they explain the experts at AFRY.

Gas and gasoline, more expensive

The contribution to the FNSSE by gas and oil companies has a direct effect on gas and fuel consumption. The report notes that, in 2026, would mean for the domestic consumer with respect to the ‘Trend’ scenario an 8% increase in the price of domestic gas, a 17% in non-domestic gas and a 6% on the price of gasoline.

However, they see the measure as necessary and positive. “If you want to promote the electrification of homes and businesses, you have to give price signals.” In fact, it is compared between a non-electrified home (in addition to electricity, it has a diesel or gasoline car and is heated with natural gas) and an electrified one, with an electric vehicle and heat pumps.

Evolution of the price of gas and gasoline

Evolution of the price of gas and gasoline
AFRY Consulting

If the FNSSE is not applied, electrifying a home would mean, by trend, a cost saving supply of 1.077 euros mainly due to the higher efficiency of heat pumps and electric vehicles. But with the the increase in gas and gasoline prices and the cheaper electricity, by the Fund, said savings would increase up to 1.368 euros, that is to say, 291 euros more per year.

“The particular impact for each household will depend on the relative weight of electricity, gas and gasoline in its energy basket. For consumers with a higher weight of electricity, such as numerous vulnerable consumers, a net reduction in their bill is projected ”, they point out.

Improvement of the energy balance

The consultancy also highlights another positive aspect: energy savings and improvement of the energy balance. “Valuing energy savings economically, they would represent a savings in household bills of 543 million euros“, They point out,” and the improvement in the energy balance has been quantified in 404 million euros accumulated up to the year 2030 “.

In conclusion, AFRY estimates a total cumulative impact up to 2030 of 1,433 million euros due to greater efficiency thanks to electric vehicles and heat pumps, but employment will also be created.

Linked to the impact on GDP, a total increase of 16,370 jobs / year accumulated until 2030.

Contribution to the FNSSE by the entire energy sector when fully applied, it will reach the 6.5 euros / MWh. But from then on there will be a decrease in the contribution as a result of the fall in the costs of premiums for renewables as the 25-year term of action ends.