Electricity in Spain is expensive. So-called switching assistants on the internet help consumers to find the cheapest tariff every year.
Electricity prices in Spain are among the highest in Europe. And it does not look like energy from the socket will become cheaper in the future. On the contrary. Experts predict that electricity tariffs in Spain – in Germany and other European countries, the situation looks no better – could rise by up to 30 percent in the next few years. At the same time, many households forget that there are alternatives to keep their electricity bills in check. The reason: for a good 20 years now, consumers in the EU have been able to choose their electricity and gas suppliers freely and switch at any time, subject to certain deadlines. And that can save you money.
How does the electricity suppliers' tariff model work?
As with mobile communications and the internet, electricity providers offer new customers substantial discounts for the first year, only to switch to much higher standard tariffs afterwards, usually without informing the customer. So if you switch providers in good time before the expiry of the purchase tariffs in order to benefit from a new customer offer, you will save money. According to estimates, only around ten percent of all electricity customers do this each year.
There are reasons why so few people regularly change their electricity provider: You would have to keep an eye on the respective notice periods and theoretically compare countless tariffs and contracts in order to find the cheapest provider. Most people don't have the time or the nerves to do this.
There is also potential to save on electricity bills in Spain by choosing a tariff according to the time of day (discriminación horaria). Two tariffs are set depending on the time of day. So if you use your washing machine, dishwasher, etc. at the times with the cheaper tariff, you can save on electricity costs.
Electricity prices during the reduced hours are around 42 percent cheaper, while they rise by 21 percent during peak times. So if you use powerful electrical appliances, such as a washing machine or an iron, as much as possible during the cheap off-peak hours, households can benefit from the lower prices and save up to 30 percent on electricity costs.
