The electric debt is approaching its end: how much can it cut your bill

The debt that electricity consumers bear will suffer a significant cut next year and is nearing its end. It remains to be seen how it will be reflected in the bills.

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EuropaPress 7270737 torre electrica febrero 2026 madrid espana demanda electricidad espana

EuropaPress 7270737 torre electrica febrero 2026 madrid espana demanda electricidad espana

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The electric debt will continue to weigh on system charges during 2027, although much less than now. The latest forecast from the National Commission on Markets and Competition (CNMC) estimates an annual amount of 1,883.43 million euros in 2026, which will decrease to 1,006.72 million in 2027.

The drop is around 46.5% from one year to another. But that does not mean that a household's bill will automatically decrease by that same percentage. The debt is only one of the costs financed through the charges, and these, in turn, are only part of the bill.

Expected end in 2028

The CNMC currently divides the outstanding debt into two large blocks. The first is the Deficit Securitization Fund of the Electric System, FADE, which represented 77.5% of the outstanding debt at the end of 2025. The second corresponds to the tariff deficit of 2013.

The FADE will indeed reach the end of its life during 2027. The CNMC estimates that its annual amount will decrease from 1,605.67 million in 2026 to 728.96 million in 2027 and will be zero in 2028.

The deficit of 2013 will continue for another year. Its expected annual amount is 277.76 million in 2026, 2027, and 2028. That is why the regulator places 2028 as the year of complete satisfaction of the electric system debt.

Year FADE Deficit of 2013 Total annual amount
2026 1,605.67 million euros 277.76 million euros 1,883.43 million euros
2027 728.96 million euros 277.76 million euros 1,006.72 million euros
2028 0 euros 277.76 million euros 277.76 million euros

The outstanding debt at the end of 2025 amounted to 3,552.12 million euros, a 37.98% decrease from a year earlier. Of that amount, 2,754.12 million corresponded to FADE and 797.99 million to the deficit of 2013.

Where this debt appears on the bill

The consumer does not receive a separate line with the name "electric debt." Its cost is integrated within the electric system charges, one of the regulated parts of the bill.

For 2026, the order from the Ministry for Ecological Transition that sets those charges establishes that 39.21% of the cost financed through the charges corresponds to the deficit. The rest is distributed among the specific remuneration for renewables, cogeneration and waste, non-peninsular systems, and other costs.

This allows knowing where the debt is within the bill, but not calculating an identical reduction for all consumers. The result depends on the charges approved by the Government for each fiscal year, the contracted power, consumption, the rate, and the other components of the bill.

It is not equivalent

Between 2026 and 2027, the annual debt falls by about 876.71 million euros. This reduction frees up part of the financing needs of the system.

However, there is no rule that requires converting euro for euro that drop into an equivalent reduction of the final bill. The charges are calculated each year taking into account the set of costs that must be covered, the forecasts of consumption and power, and the available income to finance them.

The Government must approve the charges applicable to 2027. Until that order is published, it cannot be determined how much the specific bill of a household will decrease for this reason.

Cheaper bill without the tax?

To these accounts, one must add the progressive reduction, until its final disappearance, of the Tax on the Value of the Production of Electric Energy, the so-called 7% generation tax.

The Government conveys that its definitive elimination could reduce the electricity bill by 6%. The tax will have a rate of 3.5% during 2027 and will go to 0% from January 1, 2028.

The tax cut and the debt are connected

The Government itself links both decisions in Royal Decree-Law 18/2026. The regulation justifies the cut of the tax to 3.5% because the costs associated with the annual payments of the pending collection rights of the electrical system will be reduced by approximately half in 2027 compared to 2026.

For 2028, the reasoning changes. The decree-law states that it will no longer be necessary to allocate resources from that tax to finance those costs and therefore sets a rate of 0%.

This also does not guarantee that all the lower tax pressure will automatically end up in the bill with a uniform percentage. The final effect will depend on how taxation impacts generation prices, the evolution of the wholesale market, and the charges that are approved.

How much can disappear from the charges

The most solid reference available is the annual debt. In 2026, 1,883.43 million euros are allocated to these collection rights; in 2027 it will be 1,006.72 million and in 2028, 277.76 million.

When the payment for 2028 is completed, that historical cost will cease to be part of the financing needs of the system. The amount that ultimately affects the consumer will then depend on what other regulated costs exist and how the charges for each year are set.

The official calendar contemplates that FADE will be liquidated in December 2027 and that the last payment corresponding to the deficit of 2013 will occur in 2028.

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What is the parliamentary status of the ministerial order that sets the charges of the electrical system for 2027?

As of today (08/21/2026), there is no specific legislative file in the parliamentary records processing a “ministerial order that sets the charges of the electrical system for 2027”. That is, this order, as such, does not have its own “parliamentary status” (admission, amendments, committee, report, etc.), because ministerial orders are not processed as laws before the General Courts.

1. What does appear in the official records

From the institutional information consulted, the following can be inferred:

  • For previous years, orders setting electrical charges have been approved and published in the BOE:
    • Order TED/113/2024, of February 9, which establishes the prices of the electrical system charges and various regulated costs for 2024, published in the BOE on 02/14/2024 (BOE 02-14-2024).
    • Subsequent orders setting charges and other regulated costs for 2025 and 2026 (also as TED orders, published in 2024 and 2025, respectively).
    All of these are regulations from the Ministry for the Ecological Transition and the Demographic Challenge, approved and published directly as regulations.
  • For 2027, what is clearly identified and underway is the public consultation and information of an order in the gas sector:
    • “Public consultation and information on the proposed order establishing the charges of the gas system and the remuneration and fees of basic underground storages for the gas year 2027”, open from 07/27/2026 to 09/04/2026, with full text available in PDF on the MITECO website (consultation documentation).
    This proposal refers to the gas system, not the electrical system, although it follows a similar regulatory architecture (charges, fees, and regulated remuneration).

Regarding parliamentary initiatives, there is some written question in the Senate (for example, (15)684/006318) that cites a previous 2024 ministerial order linked to supply problems in the Canary Islands, but not a bill or legislative proposal processing the setting of electrical charges for 2027 as such.

2. Why there is no “parliamentary status” for the order

The underlying reason is legal in nature:

  • The charges and tolls of the electrical system are based on higher-ranking regulations (Law 24/2013 of the Electrical Sector, royal decrees setting methodologies, etc.), which have passed or pass through Parliament or, where appropriate, through the validation of royal decree-laws.
  • The specific annual application of the charges (amounts, allocation of certain costs, adjustments for each year) is set by ministerial order. This order:
    • Is processed internally within the ministry.
    • May be subject to public consultation or public hearing and information (as is happening in parallel in the gas system for 2027).
    • Is approved by the head of the Ministry and published in the BOE.
  • Ministerial orders are not voted on in the Congress or Senate, nor do they follow the legislative process (consideration, amendments, committee, plenary, second reading in the Senate, etc.).

Parliamentary control over this matter exists but is of a different nature:

  • Oral and written questions to the Government (for example, about the impact of charges on the bill or about the system’s deficit/surplus).
  • Appearances of the Minister/Vice President for Ecological Transition or the CNMC before Congress and Senate committees.
  • Non-legislative motions and proposals urging modification of the charge structure, transferring part of the costs to the General State Budgets, etc.

3. Reasonable situation of the 2027 electrical charges order

Based on the pattern of previous years and available information, it can be concluded that, for the 2027 fiscal year:

  • The ministerial order that will set the electrical system charges would likely still be in the pre-regulatory or internal technical drafting phase (reports, coordination with the CNMC, possible public hearing), without yet materializing in an identified BOE publication.
  • There is currently no specific parliamentary file on “the ministerial order setting the electrical system charges for 2027”; any debate is channeled through general control instruments.

In summary: the ministerial order for electrical charges for 2027 is not “under parliamentary processing” in the technical sense of the term, but in the Government’s regulatory circuit. Parliament intervenes only indirectly, through political control and the laws that enable and limit what that order can establish.

What are the powers and functions of the National Commission on Markets and Competition (CNMC) in the electrical sector?

The National Commission on Markets and Competition (CNMC) is the independent economic regulator of the energy sectors in Spain. In the electrical sector, Law 3/2013, establishing the CNMC, and Law 24/2013, of the Electrical Sector, assign it a broad set of powers ranging from economic regulation of networks to market supervision and consumer protection.

1. General framework of energy powers

According to Law 3/2013 itself, the CNMC’s purpose is to “guarantee, preserve, and promote the correct functioning, transparency, and existence of effective competition” in all markets, including energy markets. Specifically, article 7 of that law assigns it specific functions of supervision and control of the electrical and gas sectors, as well as the authority to approve methodologies and rules through circulars and to issue implementing acts of those circulars published in the BOE.

2. Economic regulation: tolls and network remuneration

The CNMC is responsible for the economic regulation of electricity transmission and distribution activities, which are natural monopolies. According to Law 24/2013 and its own circulars:

  • Approves the methodology and conditions for access and connection to the networks, including economic criteria, capacity evaluation, reasons for denial, minimum contract content, and transparency obligations (expressly stated in article 33.11 of the Electrical Sector Law, cited in resolution BOE-A-2025-9913).
  • Sets the remuneration methodologies for transmission and distribution networks and the financial remuneration rate (TRF) applicable to these activities, through specific circulars, which are then reflected in the tolls paid by consumers (as shown in news and circulars on network remuneration for 2026-2031).
  • Determines the access tolls to the networks, calculating how regulated costs are distributed among different types of consumers, as described in CNMC resolutions on electrical tolls.

3. Access and connection to networks

A central part of the CNMC’s functions in electricity is to regulate generation and demand access to the networks:

  • Through circulars and resolutions (for example, the Resolution of April 30, 2025, BOE-A-2025-9913, and the Resolution of June 8, 2025, BOE-A-2025-12396) it defines the methodologies to calculate access capacity and the detailed specifications for demand.
  • Imposes obligations of publication and standardized formats so that network managers publish the available capacity at each node, enhancing transparency and allowing promoters and consumers to make informed decisions.
  • Supervises that granting or denying access and connection permits complies with technical and non-discriminatory criteria, and may require detailed justifications for denials, as provided in the resolution on firm demand capacity.

4. System services and operation: voltage control and adjustments

The CNMC also intervenes in the regulatory design of the operation of the electrical system, especially after the 2025 blackout:

  • Based on article 7.1 of Law 3/2013 and Circular 3/2019, it establishes the methodologies for balancing and non-frequency services (for example, the voltage control service and the autonomous start-up service).
  • Through resolutions such as those of June 12, 2025 (BOE-A-2025-13076) and October 20, 2025 (BOE-A-2025-21198) it modifies and develops the operation procedures (P.O. 3.1, 3.6, 7.4, 9.1, 14.4, among others) to:
    • Define how the voltage control service is provided and remunerated.
    • Introduce urgent measures to stabilize voltage against sudden system variations.
    • Adjust scheduling and balancing services to increase supply security.
  • It can promote pilot projects and regulatory “sandboxes” to test new voltage control schemes or active demand response, and later incorporate them into ordinary regulation.

5. Market supervision, competition, and consumer protection

Beyond the purely technical dimension, the CNMC acts as competition authority and supervisor of electrical companies’ behavior:

  • Monitors the competitive functioning of the wholesale and retail electricity markets, being able to open investigative and sanctioning proceedings upon indications of price manipulation, abuse of dominant position, or restrictive practices (based on Law 15/2007 on Defense of Competition and EU law).
  • Controls the practices of retailers regarding contracting, information, and advertising, clarifying their obligations and reminding, for example, the prohibition of unsolicited commercial calls and the need to clearly inform about risks and costs of certain contracts.
  • Supervises the settlement system and the income-cost balance of the electrical system, periodically publishing settlements and data on tariff deficits or surpluses.
  • Issues reports and regulatory proposals on draft royal decrees and other electrical sector regulations, advising the Government and providing recommendations to improve regulation.

6. Institutional coordination and scope of its action

All these functions are exercised in coordination with the Ministry for the Ecological Transition and the Demographic Challenge, which sets energy policy and system charges, and with the system operator (Red Eléctrica de España), which technically manages the grid. The CNMC thus positions itself as the independent economic regulator and supervisor of the electrical sector, with normative powers (circulars), continuous supervision, regulatory change proposals, and, when appropriate, sanctioning powers, always guided by the principles of efficiency, transparency, objectivity, and non-discrimination imposed by Law 3/2013.

What legal requirements must be met to modify the charges of the electrical system in Spain?

In Spain, the charges of the electrical system (the regulated part of the bill intended to finance system costs other than networks) can only be modified following a fairly strict legal framework, which combines the Electrical Sector Law, a methodology royal decree, and annual ministerial orders, all with CNMC participation and public hearing procedures.

1. Basic legal framework

The reference regulation is Law 24/2013, of December 26, of the Electrical Sector (text in the BOE). This law:

  • Distinguishes between tolls (transport and distribution costs) and charges (other regulated costs: renewables, extra-peninsular extra costs, deficit, etc.).
  • Establishes that system costs must be covered with regulated revenues, avoiding the generation of new structural deficits and requiring review of tolls and charges if certain imbalance thresholds are exceeded.
  • Requires that any measure increasing costs or reducing system revenues be accompanied by a counterpart that maintains the economic-financial balance of the electrical system.

Royal Decree-law 1/2019, of January 11 (BOE-A-2019-315) reformed Law 24/2013 to adapt powers to European law and more precisely define who does what:

  • The Government, after a report from the CNMC, establishes the methodology for calculating the charges.
  • The head of the Ministry for the Ecological Transition and the Demographic Challenge (MITECO), after agreement by the Government’s Delegated Commission for Economic Affairs, approves the charges annually by ministerial order.

2. Charges methodology (Royal Decree 148/2021)

In application of this mandate, Royal Decree 148/2021, of March 9, establishing the methodology for calculating the electrical system charges was approved (BOE-A-2021-4239).

This royal decree defines, among other aspects:

  • Which costs are financed via charges (deficits, specific remuneration regime for renewables, extra-peninsular extra costs, capacity payments, CNMC remuneration, etc.).
  • The binomial structure of charges (power term and energy term) and their breakdown by tariff segments and time periods.
  • The procedure for periodic review of the methodology (initially every six years, with the possibility of shortening for exceptional reasons).
  • Coordination with the toll methodology set by the CNMC in Circular 3/2020 (BOE-A-2020-1066).

Any modification of the charges methodology therefore requires changing this royal decree (or approving a new one), following the general regulatory procedure:

  • Processing according to Law 50/1997, of the Government and Law 39/2015 (impact assessment, internal reports, etc.).
  • Prior public consultation and public hearing and information through the MITECO portal, except justified exceptions.
  • Report from the CNMC, the Council of State when applicable, and other mandatory bodies.
  • Approval by the Council of Ministers and publication in the BOE.

3. Annual approval and modification of charges

Once the methodology is set by royal decree, the specification of charge amounts is done each year by ministerial orders, for example:

From these orders and the explanatory memorandum of Royal Decree 148/2021 and Royal Decree-law 1/2019, the legal requirements to modify charges can be inferred:

  • Competence: only MITECO, by order, can set or modify charge prices; the CNMC cannot alter the charges royal decree nor substitute the ministerial order.
  • Strict adherence to the methodology of Royal Decree 148/2021 and the economic-financial balance limits of Law 24/2013 (not generating new structural deficits, correcting annual imbalances when exceeding established thresholds, etc.).
  • Public hearing and information procedure for each draft order, published on the Ministry’s website, with a period for stakeholders and users to submit comments (a repeated practice noted by the “I Want to Influence” notes of the Demócrata newspaper and the orders themselves in the BOE).
  • CNMC report on the proposed charges, consistent with its role as regulator and the competential distribution set by Royal Decree-law 1/2019.
  • Agreement of the Government’s Delegated Commission for Economic Affairs before order approval, as required by Law 24/2013 after its reform.
  • Publication in the BOE indicating the effective date and, if applicable, transitional regimes.

4. Alignment with European Union law

This entire scheme is also supported by Regulation (EU) 2019/943, on the internal electricity market, which imposes requirements on the financial sustainability of the system, transparency, and separation between network costs and other costs. The setting of charges and their revisions must respect these principles and, when measures have the dimension of state aid (for example, capacity mechanisms or certain compensations financed via charges), they must also be subject to European Commission control, as has occurred with the “anti-blackout” mechanism authorized by Brussels.

In summary, modifying the electrical system charges is not an isolated discretionary decision but the result of: (1) a legal and methodological framework of legal and regulatory rank, (2) the mandatory participation of the CNMC and consultative bodies, (3) consultation and public hearing procedures, and (4) formal publication of the new amounts in the BOE by ministerial order in accordance with the methodology approved by royal decree.

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What approximate percentage is the annual electricity debt reduced between 2026 and 2027?

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Which of the following concepts will no longer be part of the electricity system charges in 2028?

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From which year will the tax on the value of electricity production have a rate of 0%?

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