Gecko Towers
Today we start the first of a series of articles from a guest contributor, John Pearce, an advisor on energy management.
British people who purchase a holiday home in Spain are often horrified by the costs of electricity. The high costs can be explained by the different systems for charging for electricity.
The method of charging in the UK is based solely on the energy used, whereas in Spain there are two parts to the charges:
1. Actual energy used, and
2. Reserved capacity to ensure the supply at peak demand times
It is this second element which is often misunderstood.
If the home is used for two months in the summer and only one week in the winter, it is likely that the peak demand will occur during the short winter break. It is very likely that this will be at the time when an evening meal is being prepared with the simultaneous use of the oven, the hob, the water heater and the room heaters. This peak, which may only be over a 15 minute period can be the basis of the reserved capacity (potencia) for 12 months of the year.
With a typical charge of 6€ per month for each kw of reserved capacity, a peak of 4kw for a short period can give rise to a cost of nearly 300€ a year. This monthly charge is made whether the home is occupied or not.
An additional difference between the method of charging in the UK and Spain is the way that the bills are taxed. In the UK this is 5% whereas in Spain there is a special electricity tax of 5% but then an addition of IVA (VAT) of 21%.
In future articles the effect of these differences on the selection of electrical appliances in the home and means of controlling the costs will be considered.
Should you be interested in discussing the legal process involved in buying a property in the Marbella region, we would be delighted to assist you. Our team of bi-lingual, highly experienced and wholly independent Abogados are ready to help you.
Please call me, Mark FR Wilkins, during usual business hours on +34 600 343 917 or, if you prefer, or e-mail me at mark@roslegal.es
Please note that our posts are for general interest. There is no substitute for proper legal 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 the writer or the publisher providing legal or financial advice.
© Mark FR Wilkins 2022. All rights reserved.