Endesa email regarding lower tax due to high prices.
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I received the following today, seems UK is not the only one with increasing energy prices:
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In the last few days, you will have heard or read news related to the electricity sector in the different media. From Energía XXI, your reference marketer, we want to help you understand how this situation affects you.
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The current rate that you have contracted is PVPC (Voluntary Price to the Small Consumer) and it is in the regulated market. This rate changes every day and every hour, and depends on the prices set by the market.
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Since September 16, and at least until the end of the year, the Government has approved a series of measures that affect all electricity consumers and directly reduce your bill:
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- The Special Tax on Electricity is reduced. This tax was higher than 5% and, depending on your consumption, it can be reduced to 0.5%.
- Electricity charges are reduced. These amounts are intended to pay regulated items, which are passed on to consumers' bills.
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Your contracted rate, being in the regulated market, is affected by the variability of market prices. Currently the price of electricity is at historical highs. This increase is mainly due to these two causes: the price of gas is rising and the price of CO2 emission rights is rising.
If you need to resolve any questions related to your contract, we put at your disposal our network of service channels .
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This has been mentioned in the Spanish press many times. Prices in Spain for gas, which power the electricity, are at a record high. Not as high as UK because Spain gets most of its gas from Algeria but prices are high throughout Europe and have risen dramatically, over 250% increase this year.
We are with Iberdrola on their choose you 8 hours plan and the letter we got from them was that we were at a fixed rate which would not alter due to the increase in prices. It says this will be the same for other contracts such as day/night which stays on the two charges rather than the high/medium/low charges.
Our bills have come down somewhat with the reduction in IVA for those with less than 10 Kwh contracts. On other sites, people on the PVCP and those who have contracts with the smaller companies who buy their electricity from the main providers are complaining of increased prices.
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