New electricity tariffs introduced on October 1

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Photo Credit PeJo Shutterstock

WITHOUT a great deal of publicity, a number of the larger electricity companies introduced a new method of charging for electricity based on hourly usage with each hour having a different tariff which can also change depending upon the day of usage.

In theory, there could be 168 different tariffs each week and even they could change depending on whether it’s a windy day as, if it is, more wind power comes into play and electricity could get cheaper.

Organisations such as the Citizens Advice Bureau seem a little ambivalent as to whether there will be any real saving although they think that, on balance, there may be. They do point out, however, that a high percentage of the bill from the electric companies is in respect of taxes and fixed charges rather than consumer usage.

They also point out that all those with a tele-operated digital metre and on a contract with the PVPC (Precio Voluntario al Pequeño Consumidor) tariff will be affected by this change. Those on a contract that offers a fixed price for a whole year are not.

Practically all electricity companies can offer an hour-to-hour billing system, but the system as regulated by the state can only be offered by ‘commercializadores de referencia’ amongst which are Endesa, Iberdrola, Gas Natural Fenosa, EDP España y E.ON España. With the new regulation in force, more companies can join if they meet certain requisites.

There is some confusion as to the likely cost of changing the metre (and the government aim is for all metres to be replaced by 2018) but according to information we have received over the telephone, one of the ‘main players’ has indicated a €9 charge for changing the metre followed by an 81cent monthly rental charge.

Beware the unscrupulous who may try to take advantage of this change and always contact your electricity supplier as they are the ideal company to make any changes for you.

It would be almost impossible for any consumer to be completely aware of all of the costs, but it is fairly obvious that peak charges are likely in the morning and the evening whilst low costs are more likely after midnight and at weekends, especially Sundays.

This change will affect everyone who uses electricity over the next three years, but whether the companies have come up with a solution which will benefit the consumer is yet to be seen and the fact that no consumer organisation was consulted in the drawing up of these plans may be ominous.

7 COMMENTS

  1. I went with Free electric spain.com Got solar panels fitted for just €1,595 and halved my electric bill

    Should pay for themseleves in no time and I get free electric stuff all those electric companies.!!

    We live in Spain get it free from daylight.

  2. Would be interesting to see a breakdown of your bill compared to a bill before you got the solar panels installed, I would guess if what you say is true then it would take me about 4 years to cover that cost in savings and then of course allowing for additional government tax for solar power, maintenance etc. probably find it would add a few more years. I wonder how many years a system at 1,595 would last before needing replaced?

  3. Hello Mike.

    My wife informs me. And she is always correct.!! We had this installed over 2 years ago. The panels are made in Spain and guaranteed for 25 years as is the electronics. The EU have made it quite clear it is illegal to tax renewable except for the initial iva. Actually threatening to take the Spanish government to court then the Government backed down.

    We dont do any maintenance and no cleaning. We had bills of around €90 a month and now they are around €40 to €50. The panels have no batteries and supply most if not all of our daytime power needs. We are thinking of 2 more as now we have a swimming pool coming. And the pool pump will use a lot of electric. But first we will get the Free electric Spain people back round. Our hot water is also solar powered by them as well and we live in Javea

    Cheers Pete.!

    [quote]Would be interesting to see a breakdown of your bill compared to a bill before you got the solar panels installed, I would guess if what you say is true then it would take me about 4 years to cover that cost in savings and then of course allowing for additional government tax for solar power, maintenance etc. probably find it would add a few more years. I wonder how many years a system at 1,595 would last before needing replaced?[/quote]

  4. We used this company too! Very happy with our panels, our bills are drastically reduced too which definitely helps with cash flow. I would reccomend them. I can’t believe the cost of electricity nowadays, not like how it use to be!

  5. Hello Pete,
    Thank you for the extra information. What would worry me is any additional charge for having a solar panel, the Spanish still talk about Rajoy taxing them for the sun!.

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