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ENERGY

How to change the title holder of utility bills in Spain

When you move into a new property in Spain you will need to change the account or contract holder over, so that any future water, electricity or gas bills will be in your name. It's not as easy as you may think; here's how you go about it.

How to change the title holder of utility bills in Spain
When you first move in, remember to note down the numbers on the gas, electricity and water meters. (Photo by JORGE GUERRERO / AFP)

Changing the name on your utility bills and the payment details should in theory be relatively straightforward, however you may come up against some common problems which can make the change pretty complicated.

Firstly, you will need to find out which energy companies have been contracted for your property.

You can do this by asking the previous owner themselves, contacting your landlord if you’re renting or asking your estate agent to find out for you.

When it comes to water, this should be provided by your local council or city, so you won’t need to contact the previous occupant for this one. 

How do I change the title over?

When you first move in, remember to note down the numbers on the gas, electricity and water meters, so you can give these to the utility companies and they can record how much you should owe, instead of having to pay for the previous occupant’s consumption as well.

Next, you will then need to contact the energy company supplying your property or water provider and ask for a cambio de titular a nombre del arrendatario o comprador (ask for a change of ownership in the name of the renter or buyer).

The process should be completely free for electricity and gas, but in some cities, you may need to pay a deposit for changing the title of the water bill, which you should get back when you vacate the property. The deposit can be anywhere between €50 and €100.

Contacting the energy company by phone may be the best way to make sure everything is done correctly, but some companies also have online forms where you can request a title change. When it comes to water, most cities will have water offices you can visit or specific e-mail addresses if you can’t contact them over the phone. 

There are a few pieces of information you’ll need to have on hand before you contact the company. These are:

  • The full name of the previous person who had the bills in their name
  • Your NIE / DNI
  • The address of the property
  • The date you moved in
  • The CUPS code (not needed for water)
  • Your padrón certificate (for water only)
  • A copy of the deeds of the property or rental contract
  • Your bank details

With all this information, they should be able to change the name over on the account relatively quickly, so that any future energy bills will go directly to you.

At this time, you can also change your tariff or amount of energy contracted to suit your individual needs.

How do I find the CUPS code?

The CUPS code or Código Unificado del Punto de Suministro (Universal Supply Point Code) is a number that identifies each individual property that receives electricity or gas. The number doesn’t change, so you could ask the previous occupant for this as it will be written on their energy bills.

Alternatively, if this isn’t possible you can contact your energy distributor – these are assigned by area and stay the same. By giving them your name, address and ID number such as NIE, they will be able to give you the CUPS code associated with your property.

What if I want to change to a new energy company?

If you’d prefer not to contract the energy company that the previous owner had, you can also choose to go with a new one. In this case, you will still need all of the same information and numbers as above, but you will contact the energy provider of your choice and the type of tariff you want to pay.

How long will it take to change the name over?

It can take between 1 and 20 days for the bills to be changed over into your name. The previous occupant will receive their final bill and then you will receive the new one from the date you moved in.

What are some of the problems I might come up against?

The most common problem is when the previous occupant is not up to date on paying their bills and has some outstanding debt. In this case, if you try to change the title over into your name, you will also be inheriting the pervious owner’s debt.

In this case, you will have to get the previous occupant to pay their outstanding bill before you can change it over into your name. If you have problems getting them to pay their bill, then you can show proof of the date you moved in by sending in a copy of your deeds or rental contract. This should in theory allow for the transfer of ownership without having to take on the debt, however it can be tricky process, often calling the energy company multiple times and waiting for verification of the proof.

What if the energy services have been cut off?

In the case that the property has been uninhabited for some time, the previous owners may have deactivated or cut off the utilities. If this is the case, then you will need to call the energy providers to activate them again. This will typically involve paying several fees to be able to get them up and running. The amount you pay will depend on the energy distributor and where the property is based in Spain. 

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MONEY

How much can I save on my Spanish electricity bill now that VAT has been cut?

With welcome news that Spain will cut VAT on electricity from 10 percent to five percent to shield consumers from soaring inflation, how much can you expect to actually save?

How much can I save on my Spanish electricity bill now that VAT has been cut?

On Wednesday June 22nd Spanish Prime Minister Pedro Sánchez announced a further reduction in VAT on electricity prices.

Speaking to the Spanish parliament, Sánchez explained that the VAT reduction, from 10 percent to five percent, would be approved at a cabinet meeting this weekend.

But this isn’t the first time that the Spanish government has taken direct action to tackle skyrocketing electricity prices.

Last year it also slashed the VAT rate on electricity 21 percent to 10 percent to try and soften impact of rising electricity price rises on consumers facing price increases across the board.

Facing criticism for his government’s record on helping consumers, Sánchez blamed “a war at the gates of Europe” for the rises, and said the latest cut will form part of a package of measures to try and stem the effects of inflation, which hit a staggering 8.7 percent in May, the highest level in Spain for decades.

READ MORE: Spain to cut electricity tax by half to ease inflation pain

But how much can you actually expect to save on your electricity bill following the news?

How much will I save?

While a cut to the VAT rate paid on electricity is welcome, in reality it seems the difference to electricity bills will be minimal.

According to experts, lowering VAT from 10 to 5 percent will mean savings of around €4 a month for households with an average consumption (270 kWH per month and a contracted power of 4 kW) on the regulated market.

Let’s look at an example. A household with consumption at 270 kWH per month would have paid €95.43 in the last 31 days. If VAT had been applied at 5 percent, as it will be under the government’s proposed cut, their monthly bill would have worked out €4.30 cheaper.

For comparison, if the government had not stepped in at all and no tax reductions of any kind had been applied, that same receipt would have been €109.6. 

How much will it cost the government?

Cutting VAT, although welcome and much needed by most consumers at the moment, does come at a cost. Officials from the Hacienda believe that lowering VAT to 5 percent will cost the public coffers up to €460 million in the next three months alone. 

Hacienda estimates that the government has so far spent €3.8 billion on all tax cuts to lower electricity bills.

Is it enough?

Is another VAT cut enough to recoup the difference and negate rising prices? Simply put, if wholesale electricity prices (something the Spanish government has no control over) continue to rise at the rate they have been, the prices passed onto the consumer will most likely make the cuts to VAT negligible.

At the start of June, the daily price of electricity began at €210/Mwh, but by this week this Thursday it had already climbed to €272/mWH – a 29.5 percent spike since the beginning of the month equivalent to €62 extra on bills.

With no end to war in Ukraine or the volatility on the energy market in sight, the Spanish government is searching for ways to ease the burden on consumers. Labour Minister Yolanda Díaz recently proposed slashing the price of monthly public transit passes by 50 percent and offering €300 to people hit hardest by rising prices.

READ MORE: Spain eyes €300 handouts for most vulnerable and further fuel reductions

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