Electricity market in Spain: main players

The electricity market in Spain has four main activities:

  1. Power Generation
    • It is responsible for the production of electricity power
    • The Power Generation sell the electricity through two ways:
      1. Wholesale market: where electricity is sold for the short and long terms
        1. Electricity pool (daily purchases)
          • Allows buying electricity power on the same day
          • Works in a similar way to the stock exchange in which prices are set by the offer and demand
        2. Futures (electricity purchases for the future):
          • Allow buying electricity in advance for the upcoming days, weeks, months, quarters and years
      2. Bilateral contracts with Energy Retailers
        • Power generation companies sell the electricity directly to Energy Retailers
    • Types of electricity generation plants:
      1. Nuclear
      2. Coal
      3. Natural Gas
      4. Hydro
      5. Wind
  1. Transmission and Distribution
    • Responsible for the transmission/distribution of electricity power in high voltage (transmission) and low voltage (distribution)
    • Red Eléctrica de España (REE) for transmission and distribution companies are the sole owners of the network
    • Thus, being a monopoly, the Government sets the annual retribution through the access tariffs
  2. Energy Retail
    • Sell electricity power to final consumers
    • Two types of Energy Retailers:
      1. Retailers in the liberalized market
        • Supply electricity at the tariffs defined by themselves
      2. Reference Retailers
        • Designated by the Government to offer the Voluntary Price for the Small Consumer (Precio Voluntario para el Pequeño Consumidor) and the Last Resource Tariff (Tarifa de Último Recurso) whose prices are defined by the Industry Ministry
  3. Consumers
    • Final consumers of electricity
    • Free to choose the supply of electricity from any Energy Retailer

How much I can save in my electricity and gas bills?

You can save a lot.

Just to have an idea:

  • If you live in a flat, you can save up to 200€ in electricity and 70€ in gas, if you choose the best deal among those currently available.
  • If you live in a villa, you can save up to 800€ in electricity and 160€ in gas
  • If you live in a large villa or it is the case of a SME (small or medium enterprise), you can save up to 3.200€ in electricity and 3.600€ in gas

If, additionally, it is more than a year since you last switch your contract, you are more tan likely to save even more money for two reasons:

  1. CPI update: when retailers automatically renew our contracts, at least, they update their prices with the annual CPI.
  2. Price update: in most cases, retailers communicate via email or post their new prices. This updated prices tend to be higher than the prices offered to new customers.

Write us to have your personalized analysis and make sure that you have the best electricity and gas deal.

Compare all the deals in a matter of seconds and DO NOT OVERPAY!!!

Everything about the Smart meter


What is the Smart meter?

The Smart meter constitutes the new generation of connected metering devices to measure our electricity consumption.

The Smart meter delivers two key functions:

  1. Register of hourly consumption of electricity
  2. Automatic delivery of electricity readings to distribution companies

This allows three important advantages:

  1. It enables electricity retailers to design personalized deals based on electricity hourly consumptions
  2. It avoids estimated readings as bills are based on the real consumption for each client
  3. It allows adjusting the contracted power without the physical visit of a technician

Consequently, some electricity retailers offer special deals with different hourly prices for the weekends, summer/winter, etc.

Electricity deals with different prices for different hours are not necessarily cheaper

This does not mean that these deals are cheaper but there is more room to adapt deals based on different consumption patterns.

Therefore, it is very important to compare all the available deals in the market. If you want us to help you finding the best deal, contact us clicking in this link.

How do I know whether I already have a Smart meter?

Your electricity bill shows if your point of electricity supply has a “Smart meter effectively integrated in the telemanagement system” (“contador inteligente efectivamente integrado en el sistema de telegestión”).

Bear in mind that you may have a Smart meter which is not integrated into the telemanagement system. In this case, your electricity readings won’t be automatically sent to the distribution company.

In order to confirm whether you have a Smart meter, check how to find it in your electricity bill in the following article.

Smart meters are still being installed throughout Spain

The Smart meter installations are free and are expected to be completed by the end of 2018. As a reference, as in June 2016, 62% of all points of supply already have a Smart meter installed.

How do I get my hourly consumption?

You can access your hourly electricity consumption through your distribution company’s website.

The following file from the CNMC (National Commission of Markets and Competition -Comisión Nacional de los Mercados y la Competencia) includes the list of all the distribution companies, their telephone numbers and websites.

Best electricity and gas deals – May/June 2017

Below, we are including the ranking of best electricity and gas deals as of May/June 2017 for three types of clients:

  1. Flats
  2. Houses and Small businesses
  3. SMEs

Keep in mind that these savings are calculated applying the average consumption for each type of consumer in Spain.

If you are interested in a personalized study of the best deals based on your real consumption, write to us.

 

 

 

 

Relevant information of my electricity bill

Save money comparing all the electricity deals and contracting the deal with the best Price and the best terms based on your real consumption.

It is very simple.

You will find in your electricity bill all the information you need.

In this article, we will go through the information you need to:

  1. Compare electricity deals
  2. Contract the deal of your choice

To make it even easier, at the end of the article, you will find an image with the structure of the bill. You will find this structure in every electricity deal, no matter the electricity retailer.

TO COMPARE ELECTRICITY DEALS

You will need the following information from your electricity bill:

  1. Power (Potencia contratada)
    • Location in the bill: section H of the below image (page 2).
    • Concept: the power is measured in kW (kilowatts). The required power is estimated adding the powers that all the electric appliances in the house may demand at the same time.
    • Price: it is calculated in €/kW per day. It constitutes the fixed part of the electricity bill.
  2. Consumption (Consumo)
    • Location in the bill: section H of the below image (page 2).
    • Concept: consumption is measured in kWh (kilowatts hour) and reflects the consumption derived from a 1 kW power during one hour. It constitutes the variable part of the electricity bill.
    • Price: it is calculated in €/kWh. It constitutes the variable part of the electricity bill.
  3. Postal code
    • Location in the bill: section F of the below image (page 1).
    • Concept: it is very likely that you need your postal code as many deals are only available for certain locations.

TO CONTRACT THE BEST ELECTRICITY DEAL

You will need the following information from your electricity bill:

  1. CUPS (Unique Code for the Point of Supply)
    • Location in the bill: section F of the below image (page 1).
    • Concept: it helps to identify the point in which the electricity is consumed. For each CUPS there will be a meter.
  2. ID
    • Location in the bill: section F of the below image (page 1).
    • Concept: it is used to identify the holder of the electricity contract.
  3. Bank account (Cuenta bancaria)
    • Location in the bill: section F of the below image (page 1).
    • Concept: it is used to charge periodically the electricity bills on your bank account.

OTHER RELEVANT INFORMATION FROM YOUR BILL

The following information, although not required for both comparing and contracting electricity deals, may be useful for any customer service enquiry you may need:

  1. Type of contract (Tipo de contrato)
    • Location in the bill: section F of the below image (page 1).
    • Concept: it indicates whether you have a free market or a regulated contract. There are five types of contracts:
      1. Voluntary Price for the Small Consumer (Precio Voluntario para el Pequeño Consumidor – PVPC)
      2. Last Resort Tariff (Tarifa de Último Recurso  – TUR) with Social Bonus
      3. TUR for consumers not eligible for PVPC who temporaly have no supply contract
      4. Annual contract at a fixed price
      5. Free market contract
  2. Contract reference number/ Bill number (Referencia del contrato/Número de factura)
    • Location in the bill: sections B and F of the below image (page 1).
    • Concept: these are reference numbers for internal use for each electricity retailer. If you contact your electricity retailer, you may be asked this information.
  3. Type of meter
    • Location in the bill: section F of the below image (page 1).
    • Concept: indicates whether the point of supply has a smart meter. For mor information about smart meters, read the following article.
  4. Distribution company
    • Location in the bill: section F of the below image (page 1).
    • Concept: indicates the name of the distribution Company responsable for maintaining the conection of our point of supply including the meter.
      1. This information is needed to access our consumption in case you have a smart meter.

 FURTHER QUESTIONS

If you have any question, do not hesitate contacting us at contacto@elblogdelahorrador.com.

STRUCTURE OF THE ELECTRICITY BILL