Indexed electricity rates for businesses

Indexed electricity rates for businesses and premises

What is the Indexed Rate and how does it work for businesses?

The Indexed Tariff allows businesses to pay a variable price for electricity consumed, adjusting to real-time electricity market prices. This means your business pays for energy at cost plus a small management fee, giving you direct access to free market tariffs.

Benefits of the Indexed Rate for your business or premises:

  1. Substantial Savings: You're likely to see significant savings on your electricity bill, as you'll be able to manage your consumption to take advantage of times when energy is cheaper.

  2. Flexibility and Control: With the Indexed Tariff, you pay for energy based on the actual hourly price, allowing you to maximize savings and avoid the risk premium usually associated with fixed tariffs.

  3. Efficient Energy Management: This tariff promotes more active and optimized energy management, which you will be able to notice from the first month of its implementation.

Key components of the Indexed Rate for businesses:

  • Power Term: This is a fixed daily cost based on your contracted electrical power. Your contracted power determines how many electrical appliances you can operate simultaneously. Adjusting this correctly is essential for optimizing your costs.

  • Energy Term: The cost of the energy you consume varies according to the hourly price on the OMIE (Iberian Electricity Market Operator), plus a management fee. This allows you to pay for energy at its exact market cost at any given time of day, avoiding the extra costs of fixed tariffs.

 INDEXING FORMULA

INDEXED PRICE: The monthly energy charge will be calculated on an hourly basis. The hourly price, calculated according to the following formula, will be multiplied by the customer's hourly consumption at the point of origin, based on the time-of-use profile as established in the General Contract Terms. Additionally, a Financial Cost of 0.3% will be applied to all components of the contract, including VAT or IGIC.

              PEh= [(PMDh+COSh+PC3h+Dh)*(1+Losses)+ GOh] * 1,015 + PaEh

Where:

PEh = Hourly energy price

CDh = Cost of energy scheduling deviations
PMDh*= Daily market price (OMIE)

PC3h = Financing of capacity payments (Regulated cost)
COSh = System operator costs (REE) + OS and OM remuneration

PaEh = Energy term of the access toll + Energy Efficiency Fund + Marketing Charges (CC**)

GOh = Operating Expenses

*In SEIE, the SEIE hourly price applies to marketers (except CUR).

**CC: €0.0019/kWh for 2.0TD tariffs with contracted power ≤10kW, €0.0007/kWh for 2.0TD tariffs with contracted power >10kW and €0.00055/kWh for 3.0TD and 6.1TD tariffs.