Who sets the price of electricity?
The price of electricity is determined by two components. On the one hand, the regulated component is determined by the Government, which sets the electricity toll fees that cover the costs corresponding to transport and distribution, subsidies for renewable energy, and amortisation of the tariff deficit, in addition to other costs such as the discount rate for lower income families.
On the other hand, the liberalised component covers the cost of energy, which is established at the CESUR auctions: quarterly auctions in which more than 20 national and international companies, involved in power generation and trading, take part.
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What costs are necessary to provide the electricity supply? >
