Gecko Towers:
This is the first in a short series aimed at demystifying that household essential – Electricity.
Understanding Your Electricity Bill in Spain
Before discussing electricity charges in Spain, it is important to understand the basic units that appear on your bill:
A kW is the energy rating given to an appliance. If a 1kW-rated electric fire is left on for 1 hour, it uses 1kWh of energy. An important part of your monthly bill is based on the number of kWh used.
A time period is a period (or periods) in the 24 hours when the cost of a kWh is higher or lower. The greater the national demand, the higher the charge. The cost is related to the highest cost of any generator needed to meet the peak power; this could be an inefficient plant only occasionally used during an exceptional peak. As an example, between midnight and 8 a.m., the demand is low and the price is also low. The opposite can be the case in the afternoon when people return home and turn on appliances such as air conditioners or heaters.
With a part of the total demand being supplied through wind and solar energy where the cost is nearly zero, you sometimes hear of hours when there is no charge for a kWh. As more of the total energy is supplied by solar panels, it is likely that the difference in cost between night and day will reduce.
These basic factors need to be kept in mind when reading future articles.
Also, It should be born in mind that from 1st January 2025, IVA (local VAT), that had been rebated to 10% since 1st January 2024 as part of an austerity package, will return to 21%. This will have an appreciable impact on your electricity bills going forward.
These articles are prepared by a highly-experienced professional skilled in the world of electricity monitoring and management. Should you require assistance on a personal basis please feel free to contact me on the following details and I will forward your mail to our colleague.
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Please note that our posts are for general interest. There is no substitute for proper advice tailored to your specific circumstances as provided by a qualified Abogado who is experienced in the application of the Spanish Law. Nothing contained in this article should be seen or taken as legal, tax or financial advice and cannot be relied upon as such. Neither the writer nor the publisher accepts any responsibility for liabilities arising as a result of reliance upon the information given. All details have been reasonably fact-checked and all efforts have been taken to ensure that facts are accurate as at the date of publication.
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