New electricity rates in Spain in 2021: how to save money

New electricity rates in Spain
New electricity rates in Spain / Unsplash
8 June 2021, Redaction

Spain has introduced its new electricity tariff charges this June 2021, meaning that customers, including the thousands of expats living in Spain, will have to get used to reading a new electricity bill and in many cases, higher household expenses and utility bills. The new rates establish 3 time bands to measure the cost of electricity consumption at home, from the most expensive to the cheapest: peak, flat and off-peak. So, has electricity gone up in Spain? In general terms, yes, but there are ways to save money, even with these new electricity rates in Spain in 2021. Let's have a look at the details and how to save money on your electricity bill in Spain

How will the new 2021 electricity tariffs in Spain affect you?

All households in Spain will now have prices differentiated by hourly time brackets, both for power and consumption. All current tariffs will be replaced by a single tariff (known as 2.0 TD), while power is now differentiated into 2 periods. Different power can be contracted for each period. 

  • Peak power from 8am to midnight.
  • Off-peak power from midnight to 8am, as well as any time on Saturday, Sunday and national holidays.
  • Off-peak power will be much cheaper.

New electricity billing periods

Consumption will be differentiated into 3 different billing periods detailed below. 

Billing periods
CNMC
  • VALLE (off peak): this is the cheapest period and includes night hours with a lower electricity consumption, from midnight to 8am, as well as any time on Saturday and Sunday and national holidays. 
  • PUNTA (peak): this is the most expensive period and ranges from 10am to 2pm and from 6pm to 10pm.
  • LLANO (flat): This period maintains an intermediate price and ranges from 8am to 10am, 2pm to 6pm and from 10pm to midnight.

What can I do to reduce my electricity bill in Spain?

There are several possibilities to reduce your electricity bill in Spain in 2021:

  • Avoid simultaneous consumption, i.e. using several appliances at the same time, such as the oven and the washing machine, in order to reduce the contracted power
  • Shift consumption to off-peak periods, as now it is more important to concentrate your electricity consumption within these cheaper time frames. While this doesn't mean you have to do the washing at 2am, you might want to adjust when you carry out certain household tasks, as with these changes, all consumers will now be affected by the times they use their electricity.
  • Use the ECO setting on appliances such as the dishwasher and use a lower temperature when using the washing machine.

The CNMC (National Commission on Markets and Competition in Spain) anticipates that by restricting the use of certain household appliances to outside peak hours, households in Spain will make an annual average saving of 130 euros on their electricity bill. 

 

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