How to save on your electricity bill in Spain: a practical guide
Most households in Spain pay more than they need to for electricity, and almost never because they use too much. It is because the four settings that define the bill are badly adjusted. Here they are, in order of impact.
1. Contracted power: the cost you pay even when you are away
This is the most expensive mistake and the most common one. Your contracted power (potencia contratada) is charged every day of the month, whether you use electricity or not. If the house is empty for thirty days, you are charged just the same.
Many homes carry 5.5 kW or more inherited from a previous contract, when their real use never goes above 3.5 kW. Every kilowatt too many is roughly 40 to 50 euros a year thrown away.
How to tell if you have too much: find the power term on your bill and compare it with the most you actually reach. If your contracted power is well above what you really use, you can lower it. The only practical limit is that the supply should not trip when several large appliances run at once.
You can also contract two different power levels: one for peak hours and a different one for off-peak. It is useful if your heavy use is at night.
2. Time bands: punta, llano and valle
The standard home tariff in Spain is called 2.0TD, and it splits the day into three bands with very different prices:
| Band | Hours (weekdays) | Relative price |
|---|---|---|
| Punta (peak) | 10:00–14:00 and 18:00–22:00 | Most expensive |
| Llano (standard) | 08:00–10:00, 14:00–18:00 and 22:00–24:00 | Middle |
| Valle (off-peak) | 00:00–08:00, and all day at weekends and on national holidays | Cheapest |
Moving the washing machine, the dishwasher or electric car charging to off-peak costs nothing and lowers the bill month after month. Weekends are off-peak at any hour.
3. The price per kWh: fixed or indexed
This is where a good part of the bill is decided. There are two models:
- Fixed price: you pay the same per kWh for the whole contract. It gives peace of mind and predictable bills.
- Indexed price: the price follows the wholesale market hour by hour. It can work out cheaper, but it can also shoot up when the market rises.
Neither is better in the abstract: it depends on how you use electricity and how much variation you are willing to accept. If your household budget cannot take surprises, fixed usually pays off.
4. The extras you do not look at
Check the small lines on the bill. It is common to find:
- Maintenance services that nobody remembers signing up for, at 5 to 12 euros a month.
- Home or breakdown insurance added to the electricity contract.
- Lock-in clauses (permanencia) that penalise you for leaving early.
- Meter rental, which is legitimate but worth checking.
Added together, these can come to more than a hundred euros a year without giving you anything.
What about switching supplier?
It is the step that saves the most when the four points above are wrong. Switching is free, nothing is touched in your home and there is no interruption to your supply: the wiring and the meter stay the same, only the company that bills you changes.
How much can you really save?
By optimising tariff and power, typical savings fall between 10% and 20% of the annual bill. In a home paying 90 euros a month, that is between 108 and 216 euros a year. In a business with several supply points, the figure multiplies.
The only way to know your exact number is to look at your real bill: consumption, power and time bands are all on it.
Frequently asked questions
How much can you save on an electricity bill in Spain?
By optimising the tariff and the contracted power, typical savings are between 10% and 20% of the annual bill. In a home paying 90 euros a month that is between 108 and 216 euros a year.
Is there any risk in lowering your contracted power?
The only drawback is that the supply may trip if you run several high-consumption appliances at the same time. Adjusted correctly to real use, you do not notice it day to day and you save every month.
Is the power cut off when you switch supplier in Spain?
No. It is an administrative procedure: the wiring and the meter are the same and the supply is not interrupted at any point.
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