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Christmas is easily one of the most expensive times of year and 2025 is proving to be even tougher on families across Spain. With this tipped to be the costliest festive season on record, has there ever been a better time to hear one of our biggest household bills will be cheaper come the new year?

 

According to the Ministry for Ecological Transition, electricity prices will drop by between 5% and almost 10% in 2026 for homes and businesses alike, even though the fact that the Spanish government plans to hike up charges. This is mainly because the trend in energy market prices is downward, despite the inherent uncertainty in this sector.

 

While the average price so far in 2025 has been €64.96 per MWh, a decrease began at the end of November, which they expect to continue next year. Sources within the department point to the electricity price recorded on November 28 of €56.7/MWh, which is lower than the annual average and is expected to continue next year "thanks to competitive renewable energy generation."

 

Specifically, the Ministry estimates that ellectricity bills will fall by 4.66% for households, 4.95% for small and medium-sized enterprises, 8.55% for industry and even more, 9.91% for energy-intensive industry.

 

If these forecasts hold true, lower energy prices, and therefore lower electricity prices for each household, SME or business, would easily offset the increase in the fixed charges on electricity bills expected in the new year .

 

These fixed charges include tolls, set by the CNMC (National Commission for Markets and Competition) to distribute the cost of maintaining electricity networks, and other costs, where the Ministry for Ecological Transition passes on additional expenses to all consumers, such as the social tariff, the tariff deficit and the special remuneration for the first renewable energy plants.

 

Every December, the Ministry opens a public hearing and information process for its proposed Ministerial Order to set the charges for the electricity system for the following year. This meeting is happening on Thursday December 4 and it’s expected that all standing charges will be increased.

 

However, if the predictions are correct, we’ll still be paying a little less on our electricity bills come January.

 

 

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