Changes to Spanish electricity tariffs from June 1 will affect everyone in Spain

Lower voltage tariffs affect practically all Spanish private households.

All energy users in Spain will have noticed in recent months that their energy costs have increased significantly due to prices in the wholesale energy market and on June 1 a new billing system is being introduced by the government.

One of the fundamental challenges facing the energy sector as it moves into a greater consumption of renewable energies is to better manage the demand for electricity and as part of this, the new system encourages consumers to use energy-heavy products outside of the periods of peak demand by varying the rate at which energy is billed according to the time of day.

The information below has been written by Energy Nordic, a company which supplies electricity based on the use of alternative energy sources at competitive rates. Click for more information and for a quote to save money on your daily electricity bill.

How will the new 2021 electricity tariffs affect you?

After over 3 years postponing these updates, the Spanish government and distributors have now confirmed these changes will come into place from next week. Many of you may have seen abnormalities on your meters in the last few months (‘P3’ readings etc), regardless of your supplier – this has been due to the introduction of these upcoming changes and new governmental regulations.

Sources from the Ministry for the Ecological Transition explain that “these changes are intended to encourage the transfer of electricity consumption from the hours of maximum electricity demand (peak hours) to others in which the transmission and distribution networks are less saturated (off-peak hours), which will reduce the need for further investment in such infrastructures. Users who modify their consumption usage to the set ‘cheaper’ hours, will achieve greater savings on their bill".

Firstly, the most significant changes are to the new 2.0 TD tariff that will affect practically all households and a large part of consumers. Currently, ‘low voltage’ installations (that is, with contracted power – or potencia – less than 15 kW) represent practically all Spanish households, between six different rates (2.0 A, 2.0 DHA, 2.0DHS, 2.1 A, 2.1 DHA, 2.1 DHS) according to their preferences and needs. With the change in regulations, these six tariffs are replaced by a single tariff: the 2.0 TD , therefore, all supply points with a contracted power (potencia) of less than 15 kW will have this tariff.

There will be no more ’24 hour’ price option, this tariff will have 3 energy consumption billing periods and 2 potencia periods – this means you will be able to choose 2 potencias (the same or different) throughout the day to ensure you are optimised for your personal usage.

Another significant change is to the new 3.0 TD tariff that will affect all consumers that are currently on 3.0A and medium-voltage 3.1A (these tariffs are determined if you have a potencia higher than 15kW in at least one period.) As it stands, the 3.0A and 3.1A electricity rate currently has 3 time periods (with 3 different potencias) and is generally intended for SMEs (Small and medium-sized enterprises). From the 1st June these rates will be called 3.0 TD and they will now have 6 different periods of consumption as well as 6 different periods for potencia at 6 different pricing rates.

Knowing what these different time periods are, for both energy consumption and for potencia, will ensure you are able to optimise your usage and bill efficiently to prevent unexpected price hikes. If we don’t become more efficient and shift our consumption to cheaper hours, you could see your bills rising in price. Visit the blog on our website (energynordic.com) for more information or scan the QR code below to access our free downloadable energy period timetables so you can understand how to make effective and economical changes to your consumption habits.

To summarise, there will be a big shift in how electricity is charged across all of Spain , but we will continue to sell energy at our market price with no profit added to your consumption, as we always have!

If you have any questions about switching or the upcoming changes, contact us at info@energynordic.com or give us a call on +34 916 358 626 and our energy experts will be more than happy to help!