Alcanzia Energía: cheaper than Spain's power oligopoly, but with caveats
In 2015, Alcanzia Energía promised Spanish households cheaper bills than the big power oligopoly. Early customers estimated savings of two euros a month, along with the occasional scare.
English · Original discussion in Spanish · Published
Alcanzia Energía: cheaper than Spain's power oligopoly, but with caveats
In January 2015, the electricity bill became a small household experiment. While Endesa announced a tariff increase "given market circumstances", the OCU consumer group's comparison tool named Alcanzia Energía as the cheapest electricity supplier for a domestic profile. The paradox was no small matter: the official comparator of the CNE (Spain's energy regulator) still ranked the big oligopoly players among the most affordable options. The question that spread was simple: can you really notice it on your bill?
The first calculations suggested yes, though with nuances. One customer compared their last Iberdrola bill with their first from Alcanzia: the contracted capacity went from €0.135031/kW/day to €0.104229/kW/day, and the energy term hovered around €0.11875/kWh versus the traditional utility's effective €0.1287/kWh. The saving, at average consumption, was around two euros a month. Little, but real.
The price argument: cheap grid fees, margin on consumption
Alcanzia's tariff structure explains part of its appeal. According to the available data, the company charged only the toll set by the government for the capacity term —€38.043426/kW/year— while the PVPC regulated tariff applied €42.4362/kW/year, including the profit margin. The supplier's business was concentrated in the energy term, where it offered a fixed or indexed price. For a business with electric heaters, the jump was remarkable: from an average of €250 a month with Endesa to €150 with Alcanzia, with winter peaks dropping from €300 to €180.
The talk of real competition kept coming up: leaving the oligopoly, even with modest savings, had a symbolic value. "The cost is filling in a form in five minutes", one customer summed up. Switching, in most cases, was completed in less than a week.
The fine print: wrong bills and customer service
It wasn't all good words. One account described a €515 bill for 3,278 kWh the customer had never consumed. The company's response, according to this story, was slow and ineffective. Responsibility for meter readings lies with the distributor, but it is the supplier that issues the bill and must correct it. The episode left a warning: with small suppliers, the savings can evaporate when a problem arises.
The 2016 regulatory scare
In February 2016, the Ministry of Industry peine a disqualification procedure against four suppliers, including Alcanzia and LCM Energía, for insufficient financial guarantees during certain periods of 2015. The case was dismissed and the company kept operating, but the episode was a reminder that the free market has its tremors too. The news spread through the forums and some customers breathed a sigh of relief when they confirmed the company was still going.
The overall picture, in light of the testimonials, is mixed: competitive prices, fast switching and savings ranging from two euros a month to nearly 23% for a business on a fixed tariff. Against that, customer service that is not always up to scratch and regulatory uncertainty. The question remains: is it worth switching for two euros? It depends on how much each person values their time and peace of mind.
In January 2015, the electricity bill became a small household experiment. While Endesa announced a tariff increase "given market circumstances", the OCU consumer group's comparison tool named Alcanzia Energía as the cheapest electricity supplier for a domestic profile. The paradox was no small matter: the official comparator of the CNE (Spain's energy regulator) still ranked the big oligopoly players among the most affordable options. The question that spread was simple: can you really notice it on your bill?
The first calculations suggested yes, though with nuances. One customer compared their last Iberdrola bill with their first from Alcanzia: the contracted capacity went from €0.135031/kW/day to €0.104229/kW/day, and the energy term hovered around €0.11875/kWh versus the traditional utility's effective €0.1287/kWh. The saving, at average consumption, was around two euros a month. Little, but real.
The price argument: cheap grid fees, margin on consumption
Alcanzia's tariff structure explains part of its appeal. According to the available data, the company charged only the toll set by the government for the capacity term —€38.043426/kW/year— while the PVPC regulated tariff applied €42.4362/kW/year, including the profit margin. The supplier's business was concentrated in the energy term, where it offered a fixed or indexed price. For a business with electric heaters, the jump was remarkable: from an average of €250 a month with Endesa to €150 with Alcanzia, with winter peaks dropping from €300 to €180.
The talk of real competition kept coming up: leaving the oligopoly, even with modest savings, had a symbolic value. "The cost is filling in a form in five minutes", one customer summed up. Switching, in most cases, was completed in less than a week.
The fine print: wrong bills and customer service
It wasn't all good words. One account described a €515 bill for 3,278 kWh the customer had never consumed. The company's response, according to this story, was slow and ineffective. Responsibility for meter readings lies with the distributor, but it is the supplier that issues the bill and must correct it. The episode left a warning: with small suppliers, the savings can evaporate when a problem arises.
The 2016 regulatory scare
In February 2016, the Ministry of Industry peine a disqualification procedure against four suppliers, including Alcanzia and LCM Energía, for insufficient financial guarantees during certain periods of 2015. The case was dismissed and the company kept operating, but the episode was a reminder that the free market has its tremors too. The news spread through the forums and some customers breathed a sigh of relief when they confirmed the company was still going.
The overall picture, in light of the testimonials, is mixed: competitive prices, fast switching and savings ranging from two euros a month to nearly 23% for a business on a fixed tariff. Against that, customer service that is not always up to scratch and regulatory uncertainty. The question remains: is it worth switching for two euros? It depends on how much each person values their time and peace of mind.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (23 replies).
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