Andorra's FEDA Proposes €152M 2027 Budget with 3.1% Tariff Hike
Andorra's FEDA electricity firm forecasts higher revenues from growing demand and lower import costs, while boosting investments in grid expansions and renewables. Operating expenses rise modestly amid market volatility risks.
Key Points
- Budget rises 4.5% to €151.99M, revenue from assets up 6.5% to €111M on 2% demand growth.
- Electricity tariffs increase 3.1% except subsidized domestic plans; imports from France/Spain to cover 75.67% supply.
- Investments hit €64.11M including €9M Spain high-voltage line, €21.8M Pic del Maià wind turbines.
- Personnel costs up 5.1% to €10.8M with 5 new hires; imports budgeted at €39.1M, down 10.5%.
FEDA, Andorra's public electricity company, has submitted its 2027 budget to the Consell General, projecting a total budget of €151.99 million—a 4.5% increase from the €145.49 million allocated for 2026.
The plan includes a 3.1% rise in electricity tariffs, aligned with the estimated year-end 2026 consumer price index. This adjustment will affect power and energy rates across all tariffs except subsidized flat and hourly domestic plans, which remain unchanged. Officials expect revenue from assets to reach €111 million, a 6.5% gain from this year's projection, supported by growing customer numbers and a 2% demand increase to 599 GWh.
To meet this, FEDA anticipates importing 75.67% of supply—228,333 MWh from France (up 3.9%) and 225,486 MWh from Spain (up 4.4%)—with the rest from domestic production totaling 145,871 MWh. Imports and other energy purchases are budgeted at €39.1 million, down 10.5% from 2026's €43.7 million, based on an average price of €70.50 per MWh (18.4% lower than this year's €86.48 estimate). Additional allocations cover 76 GWh of liquefied natural gas (€3.49 million), heat purchases from Ctrasa (€784,000), renewable origin certificates (€250,000), and energy transformation services (€2.5 million).
Operating expenses emphasize investments at €64.11 million (15.4% higher than 2026), with €45.67 million for machinery and equipment—including €9 million for a new high-voltage line to Spain, €3 million for the Runer river ETR link, and €21.8 million for wind turbines at Pic del Maià. Another €9.81 million targets buildings, such as the Runer ETR facility and Encamp services reforms. Personnel costs rise 5.1% to €10.8 million due to five new hires (one replacing a retirement) and salary adjustments.
FEDA highlights market conditions, existing hedges, and price trends as factors in cost projections, while noting potential volatility risks. Under Sílvia Calvó's direction, the budget prioritizes controlled spending amid rising demand and infrastructure projects.
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