Electricity prices in Spain: how bills work and how to cut them

What makes up a Spanish electricity bill

A Spanish bill has two main parts: the potencia contratada (contracted power, a fixed daily charge for the kW your supply allows) and the energía consumida (the kWh you actually use). Taxes, meter rental and VAT are added on top.

Because the power charge is paid every day whether you use it or not, contracting more kW than you need quietly raises every bill.

PVPC (regulated) vs fixed-price tariffs

The regulated PVPC tariff follows the wholesale market, so the price changes hour by hour and day by day. Free-market tariffs from the big suppliers usually offer a fixed price per kWh for a year, trading possible savings for predictability.

Neither is always cheaper — it depends on when you use power and how prices move. Compare your last year of bills before switching.

Time-of-use periods

Most home tariffs split the day into punta (peak), llano (standard) and valle (off-peak) periods, with nights and weekends usually cheapest. Moving washing machines, dishwashers and EV charging to off-peak hours can make a noticeable difference.

The biggest savings: making your own power

The most expensive energy is what you buy from the grid during the day. Solar panels produce exactly then, so the electricity you use for aircon, pool pumps and appliances comes from your roof instead of your supplier.

Surplus can be credited against your bill through compensación de excedentes, and a battery lets you use your own solar in the evening peak too.

Quick checklist to lower your bill

Check your contracted power is not higher than needed, review whether PVPC or a fixed tariff suits your usage, shift heavy loads off-peak, replace electric heaters with a heat pump, and consider solar for daytime use.