Electricity hike in 2025: What is the reason for it?

Internal factors affecting the rise in electricity prices

Cost of raw materials

Electricity comes from a variety of sources, including renewables, natural gas and coal. When the cost of these raw materials rises, the price of electricity is also affected.

In other words, if the price of natural gas rises on international markets, the companies that use it to generate electricity must adjust their tariffs, which translates into an increase in consumers' bills.

Consumer demand

During peak hours, electricity consumption is considerably higher than at other times of the day. As in any market, high demand tends to raise the value and, consequently, the price.

Factors such as consumer behavior, electricity usage trends and seasonal conditions directly influence the price variability on our electricity bill .

External factors affecting the rise in electricity prices

Geopolitical conflicts

Another important factor affecting electricity prices in 2025 are external factors, such as geopolitical conflicts. The war in Ukraine has caused a serious energy crisis, as Europe is heavily dependent on natural gas from Russia. The disruption of this supply has raised gas prices, which is used for electricity production. Uncertainty about gas supplies and the need to look for more expensive alternative sources are directly related to the increase in electricity prices.

The climate crisis and its effects

In addition to political and economic factors, extreme weather events also have a direct impact on electricity prices. Prolonged droughts and heat waves have affected electricity production from renewable sources, especially hydroelectric plants and solar energy .

For example, lack of rain reduces reservoir levels, limiting hydropower generation capacity .

VAT increase in 2025

VAT (Value Added Tax) is a tax levied on goods and services, including electricity. Generally, this tax in Spain is 21%, but in recent years, due to the energy crisis following the pandemic, the war between Russia and Ukraine and demand peaks during heat or cold waves, reduced tax rateswere applied to alleviate the pressure on consumers.

With the economic recovery, VAT will return to its original rate in 2025.This change means a significant increase in the cost of the electricity bill.

Strategies to reduce the impact on your bill

Although the 2025 electricity hike is a reality, there are ways to reduce its impact on your household budget. Some recommended strategies include:

• Optimize energy consumption: Using efficient appliances, turning off devices on standby and taking advantage of time discriminating tariffs can generate significant savings.
• Betting on renewable energy: Installing solar panels or accessing energy communities can help reduce dependence on the electricity market and its price variations.

How can we help you at Nordy?

In a context of rising electricity prices, having an ally that offers real solutions makes all the difference. At Nordy we work so that the impact on your bill is as small as possible, with tools designed to help you take control of your energy consumption.

Transparent rates adapted to you

We offer two types of tariffs so that you can choose the one that best suits your energy consumption:

• Market Rate: the price of electricity varies according to the electricity market, allowing you to take advantage of the cheapest hours.
• 24H Rate: you keep the same price throughout the contract, ideal if you prefer stability and predictability.

All our rates are without permanence, so you can decide with total freedom.

Nordy Solar Wallet

If you already have solar panels, you can benefit from our Solar Wallet for 2,99€/month (+VAT). This solution allows you to virtually store the surplus energy that you do not consume and use it in future bills.

The balance does not expire, you can transfer it between homes in your name and, most importantly, it can help you reduce your bill to €0.

Personalized and multilingual service

We understand that every customer has different needs. That's why our customer service team offers clear and personalized advice, also in several languages.

We accompany you to understand your bill, optimize your consumption and always find the solution that best suits you.

Commitment to sustainability

At Nordy we are committed to more responsible energy. We offer 100% renewable energy for only 3.90€/month (+VAT) and we support environmental initiatives such as the Save The Med Foundation, focused on the protection of the Mediterranean.
Because taking care of the planet is also part of your energy decision.

Friendly Energy Plan

Recommending Nordy is rewarded. Through the Friend Energy Plan, for each person who contracts their supply with us thanks to you, you will receive a direct discount of 30 € on your bill. A simple way to share savings among those you trust the most.

Conclusion

Electricity prices in Europe will continue to be influenced by external factors such as geopolitics and the energy transition. As renewable energy production increases, prices are likely to stabilize in the long term. However, in the short term, consumers must be prepared to manage their energy costs in the best possible way.

If you have any questions or need more information, please do not hesitate tocontact us. We will be happy to help and advise you!