Andorra Approves 2.8% Electricity Tariff Hike for 2026, Names New FEDA Director

Andorra's government has approved a 2.8% rise in electricity tariffs for 2026, alongside appointing a new director general for energy provider Forces Elèctriques d'Andorra (FEDA).

The Council of Ministers endorsed the uniform increase on Tuesday, requested by FEDA and tied to November's year-on-year consumer price index. Government spokesperson Guillem Casal said tariffs would not rise further even if year-end inflation exceeds this level. The adjustment applies to all non-subsidized rates and consumption bands from January, sparing the subsidized tariff for vulnerable households, which stays frozen. This widens the gap to 20% on the first band and up to 58% on higher ones compared to standard domestic rates. Around 500 families benefit from the subsidy.

Households face an average monthly increase of €1 without electric heating or €2 with it, on top of typical bills of about €40. Casal described the hike as "very manageable" and below potential levels, following the end of the energy crisis's worst phase. He stressed Andorra's prices will stay roughly 40% below those in neighboring countries, ensuring FEDA's financial stability, competitiveness, and funding for energy transition investments amid global uncertainties. Long-term contracts secure supply reliability.

The decision also shifts public lighting costs: parishes will cover 75% of energy and power expenses—a 25% discount—ending the prior full exemption from the crisis era. Officials said this balances economic growth, energy conservation, and support for vulnerable groups.

In a separate move, the Council named Sílvia Calvó, chief of staff to Head of Government Xavier Espot, as FEDA's new director general, replacing Albert Moles. Calvó, an environmental engineer and former environment minister, takes over in February. Moles, who led for 20 years past retirement age, stays until March 31, sharing duties and salary during the overlap to avoid extra public costs.

Opposition parties criticized the appointment. Concòrdia called it "revolving doors," urging a merit-based process over Espot's direct pick and decrying it as undemocratic alongside judicial independence issues. Social Democrat Pere Baró said bypassing competition discredits Calvó and undermines FEDA's work.