Iberdrola new gas tax - Page 4

Hi Gary,

I've found this information on the Spanish government's website:

https://www.lamoncloa.gob.es/lang/en/gobierno/councilministers/paginas/2022/20220513_council-extr.aspx

I think it explains better how the gas price cap is being applied to consumers,

"The effect will be immediate for consumers on the PVPC* tariff - the hourly electricity tariff - and progressive for the rest, who will be incorporated into the mechanism as their contracts are updated, renewed or changed. When applied for a full year, all households and businesses - except those with a longer term contract - will benefit."

*  'Voluntary Price for Small Consumer (PVPC)'

I hadn't previously seen an explanation of the "progressive" nature of the gas cap, which may explain the apparent inconsistencies members have reported.  It also suggests that while people like me, with a Fixed Plan, appear to be benefitting in the short term, over the longer term we will not, because as the kWh price reduces, we will not receive that benefit.  So it seems that the biggest issue for those on the Regulated tariff, who've already seen big increases in their month on month bills, is the sudden and, in most cases, unexpected hit to their cash flow.

Kind regards, 

Kim

Hi Stephanie,

Thanks for the update, that's really helpful.

Kind regards, 

Kim

Thank you so much for this information and, like many, it came as a surprise!

Apparently, it depends on your initial contract conditions and how recently you have changed supplier or contract. Hence the status of different experiences for users

Sue

Hi Kim

Thank you for the link, it is very helpful

Regards

Gary

Its an absolute scam.  The Government, despite all the bullshit from spin doctors is that they have robbed us to help out the energy suppliers.

If a supplier puts a customer on a fixed price, that is their choice, to weigh up the risks and price accordingly.  If they dont like offering fixed costs because they are too risky, they should offer variable rate discounts, such as those found in the UK/Ireland in the domestic market.

I was on a 5 year fixed plan from Iberdrola, which was signed up in June.  They should ONLY be charging that rate, because thats the deal we arranged.  However they are now charging the gas tax, which has been increasing each month so far, its now almost the same price per kWh as the electric is.  They charge you whatever amount of kWh of electric use as a gas charge.  So when the gas charge is the same as the electric unit price (Its close and might end up higher!) then they have doubled the bill.

We used 1017kWh of electric in September, that meant an additional €178.83 + IVA for gas.  Honestly, as much as we have no choice, its a complete scam to protect the rich energy suppliers, who pretend to customers its not their fault, its a Government charge.

Its especially laughable that Iberdrola shout out about the fact they are 100% renewable energy.  In theory you could say Im not paying for the gas thats used to produce electricity because my supplier of choice doesnt produce electricity using gas.  The reality of course is that the electricity is a mix and the renewable claim is just more bullshit suppliers trying to missell their product to clueless customers.

We have turned off a fridge/freezer so we only have one, are no longer using any AC at all as the weather is more tolerable, and constantly turning everything off even when its annoying.  On the iberdrola site the bill has not been produced, but they claim its going to be around €200 this month.  We will see when its produced.

If anyone is thinking of going solar, the repayment period between now and May (no doubt they will extend this scam) will be faster than usual.