Evaluation of tariff structural changes in Spanish households affected by energy poverty

Abstract

A new structure for regulated tariffs affecting consumers with contracted power up to 15 kW was introduced by the Spanish government in June 2021. According to the National Commission for Markets and Competition the new tariff would impact residential consumers differently, depending on previous contracting conditions. In particular, households under old Time-of-Use tariffs are expected to face a significant increase in their electricity bill, which might be exacerbated by the rising generation costs observed in the Spanish market throughout 2021. This situation becomes more relevant for consumers affected by energy poverty, especially when considering that this group needs to be in a regulated tariff to access social benefits. A set of energy poverty affected households are evaluated during a monitoring campaign carried out in Barcelona’s pilot as part of EmpowerMed H2020 project, whose objective is to tackle energy poverty and help improving people’s health in the coastal areas of Mediterranean countries, with a particular focus on women. Hourly consumption data is downloaded from the customers’ smart-meters, which are accessed through their personal account in the distributor’s website. Using this data, the article presents an evaluation of the potential impact that the new tariff structure might have on energy poverty affected households, considering different price scenarios that reflect the observed rising generation costs and the price mitigation measures enacted by the government in an attempt to reduce its impact on domestic consumers.