PVPC vs. Fixed Rate: Which Electricity Tariff Saves You Money?

PVPC or Fixed Price: The Battle for Your Bill

The regulated tariff is not "always" cheaper nor in "all cases." This conclusion emerges from analyzing data used by those who have compared bills for years: the PVPC was unbeatable until 2021, became a burden with the war in Ukraine, and now thrives only in spring. Those paying €0.111/kWh plus VAT at all hours think twice before returning to the regulated market, and rightly so.

The starting point is a reasonable doubt: if the PVPC is the cheapest tariff on average, why don't the numbers add up? The answer lies in the word average. The PVPC does not charge an average; it charges the price of each hour. That average is calculated post-facto to simplify the bill. Consequently, savings depend on when appliances are plugged in, not just the chosen tariff.

What the PVPC Really Is and How It's Billed

The mechanism is simple when explained without frills: each kilowatt consumed is paid at the price of the hour in which it is consumed. If one kilowatt enters at 10 cents and another at 20, the bill sums to 30 cents and presents an average price of 15. This average price is identical for all supplies with the same consumption, but not because an average is charged, but because the average is the result of applied hourly prices.

Hence, the question "Do they charge me the average or the hour?" has a dual answer: the hour is charged, the average is shown. Also, comparing PVPC with a flat rate requires more than looking at the kilowatt price: you must look at the power term, tolls, and above all, the clock.

The Decisive Calculation: When You Run the Washing Machine

Weekends and midday hours concentrate the lowest PVPC prices. Between 14:00 and 18:00 and on Saturdays and Sundays, the kilowatt hovers around €0.08-0.10, below the €0.111 of a fixed rate. The problem appears when large consumption cannot be moved: air conditioning in summer, heating in winter, induction hob upon arriving home. There, the PVPC spikes.

A specific case circulating among those comparing bills: a first hot weekend left the PVPC above €0.125/kWh in the early morning and above €0.20 during peak demand hours. With these figures, anyone with the AC on in the afternoon pays more than with a flat rate of €0.111. The complete calculation, broken down hour by hour, reveals surprising differences.

Contracted Power, the Factor Almost No One Looks At

The power term is the item that most distorts comparisons. The PVPC has a lower power term than most free tariffs, making the scale tip towards the regulated option even without changing habits for moderate consumption (around 180-220 kWh monthly). For high consumption, the advantage dilutes.

There lies the trap of many offers: attractive energy prices with power terms that eat up the savings. Honest comparison requires summing both items, and almost no commercial comparator does this transparently.

Evolution: From Unbeatable Tariff to Seasonal Tariff

The PVPC compensated in 2019. In 2021, with the change in pricing structure and skyrocketing tolls, it began to cease being advantageous. With the war in Ukraine came the definitive blow: bills of €350 in cold months for those who previously paid €150. Since then, the free market has gained ground among those who do not want to live dependent on an app.

The current situation is more nuanced. The PVPC has three good months—spring, with low demand and high renewable generation—and the rest are weak or bad. The last month's average stood at €0.112/kWh and the last year's at €0.140 €, according to data tracked by series trinc. A fixed rate of €0.11 at all hours and all year round is not bad with these numbers.

Who Wins and Who Loses with Each Option

The PVPC favors those who can adapt their consumption: remote workers, households with flexible schedules, users with the social bonus. The social bonus adds a 50% discount that will reduce to 42.5% for vulnerable consumers and 57.5% for severely vulnerable ones, and from January 1, 2026, will stand at 35% and 50% respectively, according to percentages tracked by regulatory trinc. For this group, there is no possible discussion.

The fixed rate favors those with rigid schedules, heavy consumption during peak hours, or simply those who do not want to check prices daily. The cost of this comfort is giving up the PVPC's savings peaks in spring and weekends.

The Real Cost of Watching the Clock

There is a factor that does not appear on any bill: time. Checking the app, scheduling washing machines, waiting for valley hours. For some, it is a game; for others, a nuisance that does not compensate for a few cents. The relevant question is not which is cheaper in abstract, but how much your time is worth and how much flexibility you truly have.

With these differentials, the regulated tariff should recover everyone who left. It is not doing so. Comfort weighs more than marginal savings, and this explains why the free market continues to win the battle.