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    Endesa challenges Iberdrola and Naturgy in the free electricity tariff in the midst of price escalation


    June 24, 2022 - CE Noticias Financieras

     

      Endesa is making its move on the commercial chessboard. In the midst of the escalation of electricity prices, the marketers of the large electricity companies want to do everything possible to gain market share and take advantage of the situation to secure contracts at a fixed price.

      With the current volatility in the PVPC (regulated) tariff due to the increase in the price of gas, the companies think it is the perfect time to tie up thousands of customers for a certain period of time, who are looking for economic alternatives to the increase in the price of their electricity bill.

      For this reason, Endesa announced this Thursday a new offer in the free market. For this reason, the electricity company has decided to lower the prices of its free market tariffs with a campaign that offers a 20% discount on the energy term (electricity consumed) to residential customers who contract in the deregulated market "seeking solutions for savings and peace of mind and not being exposed, thus, to the fluctuations of the daily electricity market".

      The company's commercial strategy is based on protecting consumers with stable tariffs in the free market, without permanence and with competitive prices "in the face of an unprecedented increase in the price of electricity in the daily market".

      20% discount

      To benefit from the 20% discount for 1 year and 10% indefinitely from the second year, interested parties must sign up for the Tempo Happy, One Luz or Libre tariffs in the face-to-face channels (commercial offices and service points) or by telephone.

      Iberdrola is not the only one to launch offers to attract customers interested in changing their tariff in the face of so much uncertainty. Iberdrola, a day after Ignacio Sánchez Galán said that only "fools stay on the regulated tariff", launched its campaign to advise 10 million Spaniards who were still on the PVPC.

      "Twenty million households in Spain have seen how their electricity bill is the same or lower than a year ago. They are those citizens who have a free tariff. However, the contracts of the tariff regulated by the Government have as a reference the daily ups and downs of the energy markets and are unbearable for the citizens attached to this tariff", said the company. This campaign alluded to its "stable plan", which offers a customized portfolio according to customer demand.

      For its part, Naturgy, which launched a campaign a few months ago to attract customers with a fixed tariff, wanted to attract the attention of SMEs with a fixed tariff at 55 euros per megawatt per hour (MWh) for industry and for a period of three years.

      Advocating the free market

      All the companies agreed to come out and say that the free market has better conditions than the regulated market. Endesa, in this sense, assures that "with this discount in free market tariffs, energy prices improve the conditions with respect to any regulated market bill (with the exception of the social bonus)".

      "Spain is the only country in Europe whose regulated tariff changes every hour, which generates more doubts and uncertainty for customers," Iberdrola maintains. The company also points out that by acquiring the free tariffs the savings are higher than if the regulated tariff is chosen, due to the high prices of the wholesale market at the moment.

      In this context, the large companies are preparing to renegotiate more than 11 million contracts for the gas cap. Since the Iberian exception was implemented and until May 31, 2023, all marketers will have to renegotiate their free market contracts so that users of this type of tariffs also pay the surcharge associated with this measure.

      In this sense, the employers' association of electricity companies asserted that at the time of renewing electricity contracts, the consumer will have to "analyze whether to go to a scenario of prices linked to the pool or try to renew these fixed prices so that this compensation is incorporated". "The complexity is going to be very high, since not all cases are going to be treated in a unique way," warned the association.

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