Price of electricity today, August 12: the cheapest hour will be at 14:00 and the most expensive at 20:00

Modifying the PVPC system practically requires amending or approving laws and, where applicable, the regulatory regulations that develop them. From a strictly parliamentary point of view, the change can be channeled as an ordinary law, either at the initiative of the Government (bill), parliamentary groups or Autonomous Communities (law proposal), or through a royal decree-law that is later ratified and optionally processed as a bill. In all cases, the core is the same: the reform passes through the Congress and Senate until its final approval and publication in the Official State Gazette (BOE).

1. Modification of the PVPC through ordinary law

The PVPC is a state regulatory regime, so its modification requires a state ordinary law (unless opting for the use of the royal decree-law). In general parliamentary terms, an ordinary law follows a basic common itinerary:

• Initiative: the proposed change is presented as a bill (Government) or as a law proposal (groups, Senate, Autonomous Communities, or popular initiative).
• Processing in the Congress: presentation, amendment phase, committee work, and debate and voting in Plenary.
• Processing in the Senate: examination, amendments or veto, and return to the Congress.
• Final approval: the Congress accepts or rejects the Senate's changes; the final text is sent for royal sanction, promulgation, and publication in the BOE.

From the content perspective, this law would set the principles and key elements of the new PVPC system (or empower the Government to regulate them by regulation), but the question focuses on the procedure, which is as described.

2. If the reform is introduced as a Government bill

According to available information, the Government's legislative initiative is called a bill and:

• It begins with the approval by the Council of Ministers.
• It is sent to the Congress of Deputies for parliamentary processing.
• Its purpose is to create, modify, or repeal laws; if approved, it becomes law.

Applied to the PVPC, the Government would approve a bill to reform the electricity price system and send it to the Congress. From there, it would follow the general legislative procedure: processing in the Congress (possible group amendments), passage to the Senate, and final approval. This route offers the Executive maximum initial control over the text and political calendar.

3. If the reform is proposed as a law proposal

The law proposal can come from parliamentary groups, a certain number of deputies, the Senate, regional assemblies, or popular legislative initiative. According to available information:

• It is presented directly in the Congress or Senate.
• It follows a process similar to bills.
• It also aims to create, modify, or repeal laws.

Regarding the PVPC, this would allow, for example, a parliamentary group to register a law proposal to change the price system structure. The key difference from a bill is the ownership of the initiative (not the Government) and, in the Congress, the need for an initial consideration, where the Chamber decides whether to process the proposal. From there, the ordinary circuit of amendments, committee, Plenary, Senate, and final approval is entered again.

4. Use of the royal decree-law and its parliamentary control

Another route used in energy matters is the royal decree-law, approved by the Government for situations of “extraordinary and urgent need.” Unlike bills and law proposals, the royal decree-law comes into force immediately after its publication in the BOE, but:

• It must be ratified by the Congress within a short period (usually 30 days).
• The Congress, in that ratification session, can decide to process it as a bill, opening a new process of amendments and parliamentary debate on its content.

Applied to the PVPC, the Government could change the system by royal decree-law, and then the Congress would have to decide whether to ratify or repeal that change. If it also agrees to process it as a bill, a subsequent phase would open in which groups could introduce adjustments to the PVPC regime through amendments, while the provisional validity of the decree-law is maintained unless expressly repealed.

5. What does not serve to modify the PVPC

It is relevant to distinguish these routes from non-law proposals (PNL), which, according to available information, are political impulse initiatives without normative force. Although a PNL may urge the Government to reform the PVPC, its approval does not itself modify the regulatory framework; for that, one of the previous legislative routes (ordinary law or royal decree-law controlled by the Congress) is essential.

The National Commission of Markets and Competition (CNMC) plays a central role in supervising electricity tariffs but does not set all electricity prices. Its competencies focus on: defining the methodology and approving the access tolls to transport and distribution networks, supervising prices and conditions in wholesale and retail markets, issuing reports on tariff regulations, exercising sanctioning powers related to prices, and ensuring coordination with the Ministry for Ecological Transition and European regulators. The Government and the Ministry continue deciding the charges and other energy policy elements, while the CNMC acts as a technical and independent regulator.

1. Tolls, charges, and regulated remunerations

The Electricity Sector Law, Law 24/2013, after its amendment by Royal Decree-law 1/2019, clearly separates tolls and charges:

• Toll methodology: article 16 of Law 24/2013 provides that, “within the framework of energy policy guidelines adopted by the Ministry for Ecological Transition, the CNMC shall establish, by circular, the methodology for setting access tolls to transport and distribution networks.”
• Approval of tolls: the same law states that the CNMC “shall approve the tolls by resolution published in the Official State Gazette.”
• System charges: the Ministry for Ecological Transition sets the charges, following a methodology established by the Government and “after a report from the CNMC” (article 16.1 of Law 24/2013).

This distribution is developed in CNMC Circular 3/2020, which, according to its preamble, aims at “establishing the methodology for the annual calculation of prices of access tolls to electricity transport and distribution networks” and specifies formulas, efficiency criteria, transparency, objectivity, and non-discrimination. The circular is issued “in accordance with the functions assigned by article 7.1.a) of Law 3/2013.”

2. Supervision of prices and wholesale and retail electricity markets

The CNMC Creation Law, Law 3/2013, grants the Commission general sectoral supervision powers. In the energy sector functional block (article 7, special functions), the CNMC must:

• “Ensure transparency and competition in the electricity and natural gas sectors, including wholesale price levels” (number 14).
• “Supervise the degree and effectiveness of market opening and competition, both in wholesale and retail markets, including (…) complaints filed by electricity consumers” (number 15).
• “Publish final electricity market prices, based on information from the market operator and system operator” (number 24).

These functions translate into ex ante supervision (through methodologies, circulars, and reports) and ex post monitoring (offers, final prices, complaints, and annual recommendations on price adequacy to the regulatory framework and consumer protection).

3. Reports on tariff regulations and PVPC

In tariff matters, the CNMC also acts as an advisory body. Law 24/2013 establishes that the Government will set the methodology for the voluntary price for small consumers (PVPC) and last-resort tariffs, which are approved by ministerial order, but “after an Agreement of the Government Delegated Commission for Economic Affairs” and “after a report” from the CNMC in the case of charges (articles 16 and the provision on voluntary prices and last-resort tariffs).

Law 3/2013 reinforces this role by providing that the CNMC issues reports on “regulatory projects or public sector actions” affecting the markets under its supervision. These reports can be mandatory (when the law expressly requires it) or optional but carry significant technical weight in shaping the regulated tariff structure.

4. Sanctioning powers related to prices and tariffs

The CNMC assumes competition defense functions under Law 15/2007, granting it sanctioning powers against anticompetitive conduct affecting electricity prices (price-fixing agreements, abuse of dominant position, etc.). Additionally, Law 3/2013 expressly provides for “initiation of sanctioning proceedings” and “conducting inspections,” and the CNMC's mandatory publications list includes “initiation of concentration control proceedings” and “initiation of sanctioning proceedings.”

In parallel, Law 24/2013 reserves certain inspections and sanctions to the Ministry when dealing with infractions outside the CNMC's competence but recognizes that some sanctioning proceedings initiation and instruction are CNMC's responsibility, including matters related to correct billing, sales conditions, and application of tariffs and remuneration criteria.

5. Relationship with the Ministry and European regulators

The CNMC does not act in isolation. Law 24/2013 establishes that the toll methodology approved by the CNMC must align with the energy policy guidelines of the Ministry for Ecological Transition, and tolls and charges are set coordinately (CNMC and Ministry) with information exchange and a common database for costs and regulated parameters.

On the other hand, the preamble of Law 3/2013 highlights that the CNMC must cooperate “with European Union institutions and bodies, especially the European Commission, and with competent authorities and bodies of other Member States,” in line with European electricity directives requiring independent national regulatory authorities. This cooperation is channeled through European regulatory forums (ACER, CEER) and is especially relevant in defining and supervising toll and network access methodologies.

The Voluntary Price for the Small Consumer (PVPC) is the regulated electricity tariff set by state regulations and can only be contracted through reference retailers. According to article 1 of Royal Decree 216/2014, of March 28, in its current wording, the PVPC applies to low voltage consumers with contracted power up to 10 kW and who meet the conditions set by Law 24/2013 and its regulatory development. No specific type of consumer (household or small business) is required in the Royal Decree itself, only compliance with technical and contracting criteria. The social bonus, meanwhile, is regulated separately and requires, among other requirements, prior enrollment in the PVPC.

Basic regulations governing the PVPC

The main regulation of the PVPC is contained in:

• Law 24/2013 of the Electricity Sector, whose article 17 defines PVPC as maximum prices that reference retailers can charge certain consumers.
• Royal Decree 216/2014, of March 28, which establishes the PVPC calculation methodology and contracting regime, according to the consulted text (Royal Decree 216/2014).
• This Royal Decree has been amended, among others, by Royal Decree 148/2021 and is affected by Royal Decree 184/2022, which partially repeals its Title IV (related to electric vehicle charging), without affecting the core requirements to opt for the PVPC.

Additionally, the PVPC hourly cost calculation methodology is specified in resolutions such as operation procedure 14.12, updated in 2023 (Resolution 14.12 of 2023), and in modifications introduced by Royal Decree 446/2023, cited in the notes of RD 216/2014 itself.

Technical requirements of the supply point

From Royal Decree 216/2014 itself, the following basic supply requirements emerge:

• Voltage: PVPC applies to “low voltage consumers” (general exposition of RD 216/2014).
• Contracted power: contracted power up to 10 kW. The preamble of the Royal Decree expressly indicates that the price structure “will apply to low voltage consumers with contracted power up to 10 kW.”

Regarding the meter, Royal Decree 216/2014 distinguishes between:

• Supplies with measurement equipment with telemeasurement and remote management capacity, effectively integrated into systems: in these cases, PVPC billing is based on real hourly consumption readings (article on cost determination and billing, which refers to the hourly price of the day-ahead and intraday market).
• Supplies without this type of meter: billing is done with real readings by periods and application of standard consumption profiles calculated by the system operator.

It is important: having a remotely manageable meter is not a requirement to have the right to PVPC, but only for the billing method (hourly or by profiles).

Contracting requirements and reference retailer

Royal Decree 216/2014 also sets the framework for reference retailers (articles 3 and following):

• Only companies designated as reference retailers can supply PVPC, which meet size requirements, minimum share capital (500,000 euros), activity seniority, and absence of serious sanctions, among others (excerpt from article 3 of RD 216/2014).
• Article 2 defines that the Royal Decree applies “to consumers entitled to be covered by voluntary prices for the small consumer or last-resort tariffs.”
• The default modality with a reference retailer is PVPC: the text itself indicates that, unless the consumer expressly states otherwise, the contract with a reference retailer will be at the voluntary price for the small consumer (article 5.5 of RD 216/2014, amended by Royal Decree 446/2023, ref. BOE-A-2023-14048).

Therefore, to opt for the PVPC, the consumer must:

• Have a low voltage supply with contracted power ≤ 10 kW.
• Contract electricity supply with a reference retailer, not with a free market retailer.

Relationship with the social bonus

The electricity social bonus is regulated by specific regulations, mainly by Royal Decree 897/2017, of October 6, and its development by Order ETU/943/2017. Although the fine details of vulnerability are not included in RD 216/2014, from the relationship between both regulations, an essential requirement emerges:

• To benefit from the social bonus, it is essential to be previously a PVPC client with a reference retailer and to be a domestic consumer (as developed in RD 897/2017).

In summary, current regulations combine Law 24/2013, Royal Decree 216/2014 (partially amended by Royal Decree 148/2021 and partially affected by Royal Decree 184/2022), as well as specific social bonus regulations, to delimit which low voltage consumers, with power up to 10 kW and contracted with a reference retailer, can opt for the PVPC and, if applicable, benefit from the additional social bonus protection.