EDP Comercial announced today that it will increase the electricity bill of residential customers by around 3%, on average, as of January 1, 2023. The justification is the volatility of the cost of purchasing energy. Notice that they didn’t say the increase in energy costs, because right now they are actually going down.
“As of January 1, 2023, the global electricity bill for residential customers of EDP Comercial will vary, on average, by around 3%,” an official source for the electricity company told Lusa.
EDP will apply the MIBEL adjustment
The variation, explained EDP, “includes not only an update of the EDP Comercial tariff, reflecting the volatility of the energy acquisition cost and the decrease in the still provisional Network Access Tariffs, but also the best estimate of what the cost will be. of the Iberian Electricity Market Adjustment Mechanism”.
The cost of that mechanism “will vary monthly and will be itemized on each customer’s invoice”, he pointed out.
At issue is the temporary mechanism in the Iberian Peninsula to place limits on the average price of gas in electricity production, at around 40 euros per Megawatt-hour (MWh), which was requested by Portugal and Spain due to the energy crisis and the Ukraine, which has been applied since mid-June.
I remind you that GALP, IBERDROLA and other smaller companies are already applying the MIBEL adjustment mechanism, causing October invoices to practically double, scaring many customers.
What to me is most dramatic is that the client will never know in advance what the value of the MIBEL mechanism is. It will always be a box of surprises. This for me is unacceptable, but it is what is foreseen in the law and it is perfectly legal.
I advised – as you remember – that they should go to the regulated market (SU Electricity) or to private companies that still do not apply the MIBEL rate. At SU Electricidade it is (for now) guaranteed that this “fee” (in practice it is not a fee, it is a mechanism that actually represents savings for customers, but it is very difficult to understand this concept when there are companies that do not apply it for not be mandatory).
VIDEO | Your electricity bill can double because of the adjustment mechanism
So, what I can tell you is that the only “safe haven” at the moment is the company in the regulated market, which is the same throughout the country (SU Electricity).
I leave you with the suggestion – if you are an EDP Comercial customer – to switch quickly to the regulated market until EDP stops applying this mechanism. If they can pay less for the same electricity, why should they pay more?
We, as consumers, have to be very attentive to all these changes and announcements from the various electricity companies if we want to pay as little as possible.
In summary, and according to the information I have at the moment, there are still only 2 companies that are not yet applying the MIBEL mechanism and that have not yet announced whether or not they will do so from January 1st: Endesa and Goldenergy.
ELECTRICITY | The list of the 10 cheapest companies this month (November 2022)
At SU Eletricidade, it is certain that in January they will not apply, unless the government says otherwise in the future.
I have nothing against or in favor of any company. My criterion is purely and simply financial. In the same way that I told you to “run away” from GALP and Iberdrola, I now tell you the same in relation to EDP Comercial. Unless you want to pay more than you could in January 2023. But that’s for you to know…
For me, for example, it is incomprehensible that practically the entire population does not switch from natural gas to regulated gas when they can pay a third of what they are paying. The only exception I understand is people who have such good discounts that it’s not (yet) worth switching. It’s a minority.
I don’t understand how people complain about rising inflation and prices, they can pay less and insist on paying more. They stand still watching the trains go by and don’t move a straw. Seriously, I don’t get it.
PODCAST | #134 – Make sure your electricity bill doesn’t double! (What is the adjustment mechanism)