Andorra Finalizes Reform to Pool Electricity Cooperative Revenues

The Andorran government has finalized a draft law to reform the payment system for parish electricity cooperatives, known as mútues elèctriques, by pooling client revenues into a shared fund and redistributing them based on technical factors.

Under the new model, cooperatives and commercializers will collect full payments from electricity distribution clients, but these funds will be reallocated across all operators according to costs for commercialization, distribution, transport, system operations, and electricity procurement. This replaces the existing approach, where cooperatives rely on the difference between wholesale purchases from FEDA—Andorra's primary supplier—and client retail tariffs. Such gaps have led to disparities depending on client types and government tariff decisions.

David Forné, Secretary of State for Energy Transition, Transport, and Mobility, emphasized that the changes will not affect household or business bills. "The user will see no difference on the invoice," he said, describing the system as "more just for everyone" by rewarding each activity based on its work and required investments, including network maintenance and upgrades.

The reform, developed in coordination with FEDA and the cooperatives, prioritizes objective criteria over political influences on pricing. It excludes any shift in the electricity commercialization model, which Forné said is under separate study and unlikely this legislative term.

The government plans to submit the bill to the General Council soon, though Forné noted approval before the session ends is uncertain due to parliamentary schedules. Carles Miquel, Director of Energy and Transport, added that the setup will protect cooperatives from tariff volatility. While future joint commercialization remains a possibility, it falls outside this initiative.