The electricity bills for many Andorran households and businesses could rise in 2027, although not all tariffs will be affected equally. FEDA has included a planned 3.11% increase in its draft budget for the next fiscal year.
Key data
- Expected tariff increase: 3.1% in 2027.
- FEDA's balanced budget: 151,994,818.20 euros.
- Estimated electricity demand: 599 GWh.
- Planned investment: 64.11 million euros.
- Percentage of energy that would have to be imported: 75,67%.
FEDA expects to raise electricity rates by 3.11% in 2027
FEDA has incorporated this forecast into the 2027 budget proposal, which has been submitted to General Council of AndorraThe increase corresponds to the estimated consumer price index used to prepare the accounts for the next fiscal year.
The update would affect both the power and energy components of the tariff. The project plans to apply the increase to all tariffs, except for the subsidized flat-rate domestic tariff and the subsidized time-of-use domestic tariff.
This is a forecast included in the draft budget. This figure does not yet allow us to calculate the final amount of each customer's invoice.
Which FEDA rates would be excluded from the increase?
The project envisions maintaining two modalities unchanged: the subsidized flat domestic tariff and the subsidized time-of-use domestic tariff. Therefore, according to the current forecast, not all electricity tariffs would increase by 3.11%.
To determine if an invoice corresponds to one of these options, the customer can review the contract or the invoice itself. The draft text does not detail any new access requirements or changes to the terms and conditions of these tariffs.
How might the FEDA increase affect households and businesses in Andorra?
The effect will depend on the contracted tariff, power, and consumption of each customer. The update would apply to both power and energy charges, so the final amount will depend on the structure of each bill.
A 3.11% increase in the affected charges does not necessarily mean that the total bill will increase by exactly that percentage. The bill also depends on the volume of energy used and the fixed component associated with the contracted power.
For illustrative purposes only, a €100 bill could increase by approximately €3.10 if all items subject to adjustment were adjusted proportionally. This is just a reference point and not a simulation of each customer's actual bill.
A practical way to prepare for a potential change is to review your annual energy consumption, identify the months with the highest demand, and check your contracted power. This information allows you to better estimate the impact on your energy supply once the final terms are known.
A FEDA budget of 151.99 million euros for 2027
The balanced budget projected for FEDA amounts to €151,994,818.20. This figure exceeds the €145,485,349.54 budgeted for 2026, representing an increase of 4.51%.
The company projects asset income of €111 million for 2027, 6.51% higher than the current year's estimate. FEDA attributes this forecast to tariff updates, the expected increase in consumption, and customer growth.
In terms of expenditure, capital investments and goods and services account for 82.751% of the total. Investments amount to €64.1 million, while current expenditures on goods and services total €61.6 million.
FEDA forecasts an increase in electricity demand from 2%
The estimated demand for 2027 would reach 599 GWh, approximately 2% more than the demand budgeted for 2026. FEDA calculates that 75.67% of the energy would have to be imported and that 24.32% would come from domestic production.
The planned purchases from neighboring countries would be 228,333 MWh in France and 225,486 MWh in Spain. Domestic production would amount to 145,871 MWh.
To interpret these figures, the main fact is that most of the energy projected for 2027 would come from imports, while almost a quarter would correspond to domestic production.
What does this mean for a customer? Total demand and the split between imports and domestic production describe FEDA's energy planning, but they do not allow you to calculate the amount of a household or business bill on their own.
Why are tariffs rising if the expected cost of purchasing energy is falling?
FEDA estimates an average purchase price of 70.50 euros per MWh in 2027, compared to the 86.48 euros forecast for 2026. The difference represents a reduction of 18.41% in that estimated cost.
The tariff does not depend solely on the purchase price of electricity. The project also includes network costs, investments, goods and services, as well as other elements of the company's economic planning.
The anticipated price increase is linked to the CPI used to prepare the budget, while the lower purchase cost is part of the overall financial forecast. Therefore, the reduction in the average purchase price cannot be directly passed on to each customer's invoice.
Purchase of energy, natural gas and heat in 2027
FEDA would set aside 39.1 million euros to buy energy, 10.51% less than the 43.7 million budgeted for 2026. This item includes imported energy, national production, photovoltaic electricity purchased from customers and the purchase of heat from Ctrasa.
The forecast includes the purchase of 76 GWh of liquefied natural gas for €3.49 million. In 2026, 69 GWh and an allocation of €2.8 million had been projected. The increase in the allocation is explained by the purchase of a larger volume, even though the estimated average price is lower: €42.85 compared to the €43.64 projected for 2026.
An additional €784,000 is allocated to the purchase of heat from Ctrasa and €250,000 to renewable energy certificates. Furthermore, €2.5 million is reserved for energy transformation services contracted by FEDA from Capçalera d'Infraestructures Energètiques SAU, FEDA Ecoterm.
€64.1 million investment to strengthen the energy system
FEDA plans to invest 64.11 million euros in 2027, 15.41% more than budgeted for 2026. This figure is part of the company's five-year investment plan.
The text of the cited project foresees this overall investment, but does not detail in the available information the distribution by specific facilities, connections or projects.
To assess the impact of these investments on supply or bills, it will be necessary to know how they are implemented and which projects are included in the plan. The budgeted amount alone does not allow us to anticipate an immediate reduction in rates.
What do these investments mean for those who live or invest in Andorra?
The planned investment indicates that FEDA would allocate more resources to real investments in 2027 than those budgeted for 2026. The project does not allow us to determine, with the information available, how each action will affect a specific home, business or company.
To calculate the costs of a property or business, the most useful data remain the type of heating, insulation, contracted power, and projected consumption. The potential update to 3.1% can be used as a planning scenario until the final conditions are known.
Increased personnel spending and operational planning by FEDA
The draft budget cited does not include figures on personnel expenses, planned hiring, or training in the available information. The specific data provided for this article pertains to the total budget, investments, energy purchases, and demand forecasts.
What should consumers do in the face of a possible price increase?
The first step is to identify your current electricity plan and check if it falls under one of the two discounted domestic tariffs that would be excluded from the price update. Next, it's helpful to review your annual consumption and peak demand periods, especially if your heating or hot water is electric.
It's also helpful to review your contracted power. Paying for more capacity than you need can increase the fixed portion of your bill, although any changes should be based on your actual energy usage.
The definitive reference will be the official communication from FEDA and the budget processing. Until then, the 3.1% increase should be used as a planning scenario, not as a final figure for calculating all invoices.
Conclusion: a moderate rise within an energy investment strategy
FEDA plans to update electricity tariffs by 3.11% in 2027, with two subsidized domestic tariffs remaining unchanged. This measure is included in a balanced budget of €151.99 million, along with a forecast of increased demand and €64.11 million allocated for investments.
The impact will depend on each customer's tariff, power, and consumption. Reviewing the bill, identifying the contracted plan, and analyzing consumption are the most helpful steps while the update is being implemented.
Frequent questions
How much will FEDA's electricity rates rise in Andorra in 2027?
FEDA plans to increase them by 3.1% in 2027, both in the power and energy terms, according to the draft budget.
Will all FEDA fees increase by 3.1%?
No. The discounted flat domestic rate and the discounted hourly domestic rate would remain unchanged according to the budget forecast.
Why is the tariff increasing if FEDA plans to buy the cheapest energy?
The rate is not solely based on the purchase price. The update is linked to the estimated CPI used to prepare the budget, and the accounts also include investments and other company expenses.
How much will FEDA invest in 2027?
FEDA plans to invest 64.11 million euros, 15.41% more than budgeted for 2026.
What percentage of energy will Andorra have to import?
FEDA estimates that 75.67% of the energy will have to be imported and that 24.32% will come from domestic production.
Sources
Last update: September 2026. The information in this article is verified with official sources from the Government of Andorra.
