Spanish Electricity Companies – Make sure you’re picking the right one

The consistent increase in electricity costs in Spain over last few years has left many comparing Spanish electricity companies and their electricity tariffs.

Spanish Electricity Companies

Electricity costs in Spain and choosing the right Spanish Electricity Company

There are several factors that need to be considered when choosing the right electricity supplier in Spain.

Spanish electricity costs are split into fixed and variable costs – both need to be considered when making your decision.

Fixed costs are set amounts which must be paid each month regardless of how much electricity you use. These include:

  • Power capacity: the rate you are contracted for in kWh x days x price.
  • Meter rental costs: You can opt to buy a smart meter once-off, which means you won’t have to pay the monthly rental fee.
  • Maintenance contract: This is an optional extra.

Variable costs include:

  • Your monthly electricity consumption
  • Electricity tax, which is applied to both power capacity and consumption

* Electricity costs in Spain are subject to VAT at the current rate.

Electricity Smart Meters

The benefit of having a smart meter installed in your home is it provides readings on hourly use; these readings can be carried out remotely which means estimated bills can be avoided.

Although installation is free, rental is around €0.50 more a month than old meters.

Spain aimed to have all households fitted with a smart meter by the end of 2018 – If you haven’t received your smart meter yet, contact your electricity provider.

Saving on your energy bill

As mentioned above, part of your monthly bill is the fixed amount charged for the kWh rate contracted.

Make sure to check your electricity bill from the last 12 months – you may be using considerably less than what you are being charged for. If this is the case, contact your supplier and have your kWh rate reduced. By reducing your fixed power rate, you could save around €60 a year.

Spanish Electricity Companies – How to choose the right kWh rate for your home

  • Small/medium sized homes with gas heating and electrical appliances: 3.3 – 3.45kWh
  • Larger homes and/or air conditioning units: 5.5 – 5.75kWh
  • Larger homes with heavier electrical consumption (e.g. heating): 9.9 – 10.35kWh

Once you’ve worked out the right fixed rate, you can choose between the three types of fixed cost contracts:

  • Voluntary Price for the Small Consumer
    • Precio Voluntario para el Pequeno Consumidor (PVPC) is usually a more suitable option for households that don’t use a lot of electricity, e.g. single-person households.
  • Fixed price for 12 months.
  • A bilateral contract with any distributor.

Changing tariffs – Saving on your variable rate

With over 100 different tariffs available in Spain, the best way to save on electricity costs is to do your research and find the cheapest, most suitable tariff for you. For example, you can choose a tariff based on your lifestyle e.g. one which has a different rate on weekends than during the week.