The electricity bill has increased by 19.04% in August 2026 compared to the same month of the previous year for an average consumer on the regulated PVPC tariff. The bill reaches 88.81 euros, compared to the 74.04 euros that the same household paid in August 2025, which represents 14.77 euros more in just one year.
The increase also occurs compared to July. In one month, the electricity bill has risen by 3.65%, equivalent to about 3.13 euros additional. With this increase, August becomes the most expensive August since 2022, when the energy crisis caused by the Russian invasion of Ukraine drove prices up.
How much is paid for electricity in August 2026?
To calculate the bill, a typical consumer with 4.4 kilowatts (kW) of contracted power and an annual consumption of 3,900 kWh is taken as a reference.
The consumption is distributed among the three time periods of the regulated tariff:
| Concept | Amount |
|---|---|
| Fixed term | 11.41 € |
| Variable term | 56.92 € |
| Electricity tax | 3.53 € |
| VAT and equivalent taxes | 15.41 € |
| Total | 88.81 € |
The calculation, made from the comparator of the National Commission of Markets and Competition (CNMC), considers a consumption of 30% during peak hours, 20% during flat hours, and 50% during valley hours.
The increase in the bill is mainly explained by the rise in the cost of electricity in the wholesale market, although the final bill also includes taxes, tolls, charges, and other regulated costs.
Why the electricity bill rises so much in August
The price of electricity has surged during August in a context marked by high temperatures. Heatwaves have increased the electricity demand from households and have raised the need to resort to generation technologies capable of covering consumption when renewable production is insufficient.
Among them, combined gas cycles play a particularly relevant role. When these plants enter the formation of the market's marginal price, the cost of gas and CO2 emission rights can be passed on to the wholesale electricity price.
Natural gas has also become more expensive during the month. In the Mibgas market, its quotation stands above 66 euros per megawatt hour (MWh), in a context conditioned by the evolution of supply routes from the Middle East, European reserves before winter, and electricity demand.
The price of electricity exceeds 118 euros/MWh
The increase in the bill coincides with a strong rise in the wholesale price of electricity.
The electric pool recorded in August an average daily price higher than 118 euros/MWh, its highest level since February 2023. For practically the entire month, the average daily price has been above 100 euros/MWh, with some exceptions.
The evolution of the market has also shown great differences between the different hours of the day. In the central hours, the high solar production has led on some days to minimum prices close to zero euros or even to negative values. During the night, on the other hand, maximums higher than 200 euros/MWh have been recorded.
The wholesale price is determined through an auction in which the sale offers from the electricity companies are crossed with the purchase orders. The offers are ordered from lowest to highest cost and the final price is determined by the last technology necessary to meet the demand.
Therefore, when renewable production allows covering a greater part of the consumption, prices can drop. When it is necessary to resort to more expensive technologies, such as combined cycles, the marginal cost increases.
Why is the price of the 'pool' not the same as the bill?
The price of the wholesale market is not the same as what a household pays in its electricity bill.
In the case of consumers covered by the PVPC, other components are added to the energy price, such as regulated costs, tolls, charges, and taxes.
Furthermore, starting in 2024, the calculation of the regulated PVPC tariff incorporates a basket of medium and long-term prices to reduce the impact of fluctuations in the daily market.
The reform has progressively reduced the weight of the daily market and increased the presence of references from the futures markets. Since 2026, the forward markets represent 55% of the weighting of the energy component of the PVPC.
This means that the price of the 'pool' continues to influence the regulated bill, but is not transferred directly and completely to the monthly bill.
The VAT on electricity returned to 21% in June
The electricity bill is also conditioned by the fiscal changes applied during the year.
Until June, certain measures approved by the Government had allowed for a reduced taxation on electricity. Since June 1, the VAT of 21% has been applied again, after the moderation that the electricity CPI had experienced.
The Government also established a progressive reduction of the Electricity Production Value Tax (IVPEE). The tax goes from 7% to 5% in 2026, will drop to 3.5% in 2027, and will be eliminated in 2028.
Can the VAT on electricity return to 10%?
The Government maintains a safeguard mechanism that allows for the recovery of some fiscal measures if electricity prices deteriorate again.
Specifically, if the specific CPI of electricity for a month exceeds by more than 15% that recorded in the same month of the previous year, certain measures would be activated again.
In that scenario, the VAT on electricity, natural gas, pellets, and firewood would return to 10%, while the Special Tax on Electricity would be reduced from 5.1% to 0.5%.
The evolution of prices in August will therefore be relevant to determine if the conditions set out in this mechanism are met.
Who pays more when the price of electricity rises?
The impact of the wholesale market is especially relevant for households under the PVPC, the regulated tariff of the electricity market.
This group, made up of around eight million customers, has a part of their bill linked to the evolution of electricity and futures markets. Therefore, episodes of high prices end up having an impact on their bills.
Consumers who are in the free market, on the other hand, pay according to the conditions established in the contract they have with their supplier. A rise in the 'pool' does not necessarily mean that their bill increases in the same proportion or at the same time.