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ELECTRICITY

The cheapest rates Spain’s electricity companies don’t want you to know about

Finding a cheaper tariff is one of the best ways to counteract skyrocketing electricity bills, but a leading consumer watchdog has warned Spain’s electricity providers are not always open to telling customers about the best deal they can get.

Published: 23 September 2022 09:57 CEST
Updated: 22 October 2022 09:56 CEST
cheapest rates electricity spain
Finding the more affordable rates can be difficult to do, and often Spanish electricity companies make them deliberately difficult to get hold of. Photo: Colin Behrens/Pixabay

Like in many parts of the world, inflation triggered by the war in Ukraine has made the energy market incredibly volatile and sent household electricity bills soaring in Spain. The average bill reached €158 in August, an eye-watering increase of over 60 percent compared to 2021.

To give you some idea of just how much prices have risen in Spain, in August of 2020 the average electricity bill was €64, in 2021 it was €93, and in August 2022 €158.

According to recent figures from Eurostat, electricity bills in Spain have risen eight times more than in France and four times more than in Germany. Whereas the average Spanish household paid 60 percent more in August compared to 2021, in France it rose by just 7.7 percent and in Germany 16.6 percent.

The Spanish government has tried various methods to ease the burden on households. In June the tax (IVA) on electricity bills was cut from 21 percent to 10 percent, and then it was quickly reduced again from 10 percent to 5. The European Commission agreed to cap gas used for power generation at €40 per megawatt-hour known as the ‘Iberian Exception’, with the price limit projected to average out at €50 over the coming 12 months.

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

The Spanish government predicted the measure — which will be in effect until May 31st 2023 — would lead to a reduction in household energy prices of up to 20 percent, yet it has done little to limit the rise of electricity bills so far.

READ MORE:

Unsurprisingly, many Spaniards are now seeking ways to cut down on their bills, whether it be by using the washing machine at certain times to take advantage of off-peak hours, or limiting their use of air-conditioning.

Another method of saving on electricity costs is finding cheaper tariffs.

Yet finding the more affordable rates can be difficult to do, and often the electricity companies make them deliberately difficult to get hold of. That’s according to Spain’s Organization of Consumers and Users (OCU), which have identified some of the cheapest tariffs on the market today. 

Understanding peak and off-peak

Spanish electricity companies offer different prices depending on the time of day you use your electrical appliances. The tariffs are often broken down into hora punta (peak time), hora llana (flat time), and hora valle (off-peak).

If you live in Spain, this is why you might’ve heard the incessant spinning of washing machines through the night in recent months. Nowadays many people simply wait until the weekend, when the tariffs are always off-peak.

So, if you’re thinking about switching, which are some of the best electricity rates you can find in Spain?

Repsol Tarifa Largo Plazo

According to the OCU, the Repsol Tarifa ‘Largo Plazo’ can only be found via this link, because the offer is actually hidden on the Repsol website. And for good reason, too. The Repsol tariff is among the best offers the  market in terms of price per kWh consumed, although the power for off-peak time is a little more than some of the other offers on the list.

The tariff is non-permanent, with a fixed price rate for 3 years.

kWh Prices

Price per kWh consumed: €0.17/kWh.

Peak hours: €29.90 per kW.
Off-peak hours: €29.90 per kW.

Iberdrola Online Plan

The Iberdrola Online Plan, which you can find here, is only available until September 30th, so be sure to take advantage of it as soon as possible.

Using Iberdrola’s online tool, you can select a kW rate and it will give you price estimates for the different values. If you’re environmentally minded, Iberdrola’s Online Plan claims to use 100 percent green electricity, so you can enjoy renewable energy and reduce your CO2 emissions.

There’s also 14 hours of savings during the night up until mid-morning.

This plan is only for customers who take out the contract online, as the name suggests, and features entirely electronic billing.

kWh Prices

Price per kWh consumed: €0.159353 + metered gas cost (in August €0.161529 /kWh).
Price per kW contracted during peak hours (fixed term): €30.66747.
Price per kW contracted during off-peak hours (fixed term): €4.104338. 

Not the prices will be revised in line with the Consumer Price Index (CPI) on January 1st. 

Octopus Energy

Octopus Energy tariffs are not permanent and is all done online, which allows you the flexibility to move around again in the future if you come across a better offer. Octopus offer two fixed prices:

Octopus 3: price per kWh consumed during peak hours is 0.254 €/kWh; at flat time 0.209 €/kWh; and at off-peak hours 0.185 €/kWh.

Octopus Relax: price per kWh consumed of 0.212 €/kWh.

kWh Prices (both Octopus tariffs) 

Peak hours (fixed term): €32.85.
Off-peak hours (fixed term): €6.57.

Iberdrola Special Plan

The Iberdrola Special Plan offers a 15 percent discount during the first year, and its kWh prices for both on and off-peak are competitive with other cheaper tariffs.

kWh Prices

Price per kWh consumed: €0.178662 (minus the 15 percent extra discount) but plus a gas metering cost (which in August was €0.161529/kWh.)

Peak hours (fixed term): €30.52381
Off-peak hours (fixed term): €3.512901

Endesa ‘One Luz’ Tariff 

Endesa is currently offering the ‘One Luz’ tariff, which offers a 10 percent discount on consumption and an additional 10 percent reduction throughout the first year.

kWh Prices

Price per kWh consumed: €0.189 (plus the 10 percent +10 percent discount) + the metered gas cost (which in August was €0.161529/KWh).

Peak hours (fixed term): €33.86.

Off-peak hours (fixed term): €7.9973

Total Energies

Another interesting option is Total Energies, who offer entirely personalised pricing plans. Basically, Total Energies want to attract your business by outdoing your current rate. In order to receive a quote and see how it stacks up against your current provider, you simply upload a copy of your current bill to the website and Total Energies make an offer, often bettering your current rate.

If they make an offer, Total Energies promise a discount lasting for 4 years, although the price on which the discount is fixed is only valid for 12 months.

READ MORE: 11 ways to cut costs as Spain’s electricity rates beat all-time price records

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ENERGY

When will they cut off my water and electricity if I don’t pay my bills in Spain?

If you don't pay your bills in Spain, like anywhere, you'll could have your water or electricity cut off. But, when will they cut them, and does the company cut them completely? Here's what you need to know.

Published: 31 May 2023 15:53 CEST
When will they cut off my water and electricity if I don’t pay my bills in Spain?

Water and electricity make up a big proportion of your household bills, along with gas. They are also increasingly expensive and prices of electricity, in particular, have skyrocketed over the last couple of years.

Though it’s a pain for many, for some people who are struggling financially, these bills can be too much. Many people fail to pay their bills and have their energy supply cut off. But when will they cut off my water and electricity if I don’t pay my bills in Spain? How long does it take, and do they cut them completely?

Water

In Spain, as anywhere, you have a contract with a water supplier, and therefore a contractual duty to pay for the service. Water bills here are paid either monthly or every couple of months.

READ ALSO: The water restrictions you can expect in Spain this summer

If you don’t pay up, for whatever reason, the water company is (in normal conditions) within its rights to suspend the supply, as indicated in the first paragraph of Article 141 of Spain’s public services law:

“The breach of the contract for a period of several months, or repeatedly, or in matters that seriously affect the company or third parties, allows the company to terminate the contract and proceed to cut the service. Under the uniform conditions, the reasons for non-compliance that give rise to the contract being terminated will be specified.”

However, it’s not entirely that simple.

Despite the fact that non-payment of water bills eventually leads to the suspension of service, the Spanish courts have ruled that water is an essential right and that under no circumstances can a person be entirely deprived of it, so companies must guarantee a vital minimum of water per day.

In judgment T-034/16, the Spanish Constitutional Court declared:

“These benefits aimed at guaranteeing the vital minimum of water for citizens cannot be understood as an authorisation for users not to comply with the payment obligation derived from the public service contract. Therefore, this court, based on reports from the World Health Organization (WHO), has determined that when a subscriber cannot cancel the water service and requires it to guarantee its integrity, he will have the right to access to the minimum amount of liquid to survive, which is equivalent to 50 litres per day per individual.”

Due to the above ruling, companies must be flexible with payment arrangements and will, only as a last measure, authorise the restriction of water according to the limits indicated by the court: that is, 50 litres per day per person who lives in the house. 

In addition to that, the Spanish government recently introduced measures to ensure that vulnerable people won’t have their services entirely cut off during the ongoing cost of living crisis. According to the government website: “Until December 31st, 2023, supplies of electricity, natural gas and water, for those consumers who are vulnerable, severely vulnerable or at risk of social exclusion, may not be suspended”. 

How soon do they do this?

It depends on the company, and on the time limit set by each provider, as long as it does not exceed the limits imposed by Article 140 of Law 142/1994, which are:

  • Two bills for bimonthly billing arrangements.
  • Three bills when it is monthly.

That basically means that depending on the water company, if you don’t pay your bill for two or three consecutive bills, which will be 3 or 4 months, the company can decide to partially suspend the service.

Electricity 

Electricity bills in particular have skyrocketed in recent times. First things first, as with water bills, if you don’t pay your electricity in Spain, it cannot be cut off without warning. You will be given plenty of time to sort out payment.

READ ALSO: At what time of the day is electricity cheapest in Spain?

Firstly, your electricity company will send you the bill, whether by post or email. If, after this notice, it still hasn’t been paid, a notice of non-payment will be sent, normally by formal letter.

Here, the company will warn you that if you don’t pay up, they are going to cut off the lights, and usually indicate a specific payment deadline and a date when they’ll do it.

If payment is still not made, another letter will be sent warning off the cut cut-off and the “effective interruption of supply”.

How long does it take for that to happen? That depends on your contract, and the market that regulates the contract:

If you’re on the free market, both the payment period and the cut-off period are stated in the contract.

For those on the Voluntary Price for Small Consumers (PVPC): the payment period is 20 days from the date the bill is issued. From the receipt of the first notice, 2 months must pass before the supply is cut off.

In the case of vulnerable customers with a bono social or social benefits, in total this would work out to four months, although they have protection from any energy cut-offs until the end of the year. 

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