SEVILLA – On June 1, the new electricity bill in the southern Spanish region of Andalucia will come into effect. Consumers can find ways to save on their bill by changing certain consumption habits. And also by adapting them to the three available time periods peak, flat and off peak rate.
The Andalucian Agency for Energy recommends consumers choose the hours of consumption as well as the days when appliances and electrical equipment are used. Furthermore, it is also an option to review your electricity contract after the new electricity rates have been approved.
Rebranded tariff
From June, all consumers and SMEs with a capacity equal to or less than 15kW will see their tariff rebranded to 2.0TD. After that they see on their bill that the price of energy will vary according to the hours. Thus, depending on the schedule in which they used electricity, they pay more or less.
The two peak periods P1 (10am to 2pm and 6pm to 10pm) are the most expensive. The flat P2 period with an average rate consists of three periods: from 08:00 to 10:00, from 14:00 to 18:00 and from 22:00 to 24:00. In the night hours (from 0 to 8 in the morning), 30% of all hours of the year, electricity costs much less in the so-called P3 off-peak period. In addition, it is important to remember that there are no peak times on weekends and public holidays.
Between 150 and 300 euros in savings
According to the Andalucian Energy Agency, the key to the new bill is that if consumers want to save money, they must adapt their consumption habits to the above three periods.
Save without investing
Just by running the dishwasher, washing machine and kettle during off-peak hours, you can save up to €150 per year without any investment. Hardware stores sell sockets that can be programmed. Therefore, it is not necessary to stay up during the week or get up before dawn to switch on these devices.
Save with investments
By introducing energy efficiency measures such as double glazing, windows with sun blinds to reduce the consumption of air conditioning by up to 30%, the use of very energy-efficient equipment, etc., this saving can increase to €200-250 on an annual basis.
Replace old appliances
If your refigerator is more than 10 years old, you may want to consider buying a new, more efficient one. Just by doing this, savings can be achieved with on the new tariff of €1,300. Whereas before that would have been €900 at the old rate. Don´t forget, refrigerators work 24 hours a day.
With the new electricity tariff, less is paid for the contracted capacity or the fixed amount on the invoice. This contracted power decreases compared to the variable part (which depends on electricity consumption and changes every month). For example, a house that has contracted a capacity of 4.6 kW will go from €250 per year (including taxes) to €150 per year.
Two different potency values based on time slots
Also new is that people can contract two different potency values based on the consumption period.
- one that groups the P1 peak period and the flat P2 period with a schedule of 8 to 24 hours (weekdays)
- and another for the off-peak P3 period, which would cover 0 to 8 hours and all hours on weekends and public holidays.
For example, if more power is required for certain applications (such as heating storage systems) or to charge an electric car, this can only be increased at certain times of the day (between 0 and 8 hours), so that the consumer so pay less.
Check which level of consumption is needed
The DSTA advises to check whether you really need the power you have contracted. For example, by reducing this from 4.6 kW to 3.6 kW, these costs would be reduced in the new bill from €150 to €120 per year (including taxes).
Regulated or free market?
According to a CNMC poll on electricity and gas use in the first half of 2020, only 25% of consumers know that they can contract their electricity at a regulated price. This is called Precio Voluntario para el Pequeño Consumidor-PVPC – which is being determined by the national government. Alternatively, the consumer can contract directly with a commercial provider at a free market rate most suited to his needs.
It is therefore important to know what kind of electricity contract you have with regard to your electricity bill. Depending on that, your savings can be greater or less.
Thus, users of the regulated market will be much more likely to notice savings that can be made. That is of course if they change their consumption habits during the different time zones. Consumers on the free market should be informed extensively about the details of their contract. And as such, the relevant provider can see whether anything could be changed.
Why is the rate being changed?
On the basis of European regulations, the costs for access tolls must be separated from the usage tariffs. This is within the regulated part of the electricity bill.
What is the entrance fee?
The tolls set by the CNMC are intended to cover the costs of the electricity network. Think of the electricity pylons, underground cables, transformation houses and everything that ensures that the energy reaches the end customer.
What are the usage rates?
Usage tariffs are the responsibility of the Ministry of Ecological Transition and the Demographic Challenge. These are intended to cover the rest of the regulated costs of the electricity system. Such as compensation for renewable energy sources, the extra costs for generation on the Spanish islands and the annual payment of the tariff deficit. These rates consist of a fixed part (contracted capacity) and a variable part (energy consumed).
Take action for the new bill?
The PVPC automatically transfers the distribution of access rates, taxes and the different time periods to a new model invoice for consumers. The consumer does not have to take any action. Commercial providers determine themselves what billing model to use for consumers with less than 15 kW of contracted power. However, government requirements have been set with which the invoice must comply or which essential content must not be missing.
Highest electricity rates
As electricity prices in Spain reached record levels this month (April 2021), it makes sense to check your consumption levels.
You can find more information on the website of the Junta de Andalucía.
