The VPSC or Voluntary Price for Small Customer, is the system for establishing the price of electricity introduced by the government for customers in the regulated market (customers that have a contract with a Reference Reseller Company – in case of Endesa - Endesa Energía XXI -), with a contracted power that does not exceed 10kW. On 28 March 2014 (Royal Decree) the VPSC tariff replaced the Last Resort Tariff (LRT).
With the entry into force of the VPSC, electricity bills still have three components:
The cost of producing electricity.
Access tolls, determined by the Ministry of Industry to cover all the activities related to supplying homes with electricity and other costs related to the electricity system.
With the VPSC, only the way in which the cost of producing electricity varies.
What is the difference between the VPSC tariff and the old LRT tariff?
When the TUR system existed, the price of electricity was set at quarterly auctions between power generators and electricity suppliers. This disappeared with the PVPC system, and new market conditions were introduced by which prices vary every hour of the day depending on supply and demand. Different factors influence the rise and fall of the price of the kWh in the PVPC regulated tariff system.
How is the VPSC billing carried out?
This new system will be applied in two ways:
1. If you already have a smart meter
It is possible to know how many kWh you consume every hour of each day, so you only have to apply the prices notified by Red Eléctrica Española, the corporation which operates the Spanish national electricity network.
2. If you don't have a smart meter yet
It is impossible to know how many kWh you consume every hour, so the profile of an average consumer is applied to you (as created by Red Eléctrica Española).
All households should have a smart meter connected to the remote management system before 2019.
What Does the PVPC Billing Model Consist of?
On the regulated electric market, you are billed based on:
Your real consumption during each hour.
- The price of electricity for that same hour.
The real and exact consumption during each hour is provided by smart meters.
The price of the kWh at the PVPC rate changes every hour of every day. With this tool, you can consult the updated electricity price.
By multiplying the kWh consumed during every hour by the price of the kWh in each one of these hours, you obtain the result of what you will be billed for your energy consumption.
Which customers does the PVPC model apply to?
The (PVPC) regulated rate applies to all customers who are on the regulated market. For that reason, they cannot have contracted power greater than 10 kW. When talking about PVPC, there are 2 fundamental elements: