Spain's 2020 Electricity Tariff Cuts Off-Peak Hours to 8 for All Consumers

Spain's electricity off-peak window shrinks to 8 hours, affecting everyone

The new electricity tariff scheduled for January 1, 2020, reorganizes the day into three time periods, reducing the off-peak window to 0:00–8:00. Previously, only about 15% of consumers had time-of-use (DH); now, 100% will. No new savings appear, nor do access charges disappear: the same money is spread across more users, causing frustration.

What changes with Spain's 2020 electricity tariff

The reform affects the Voluntary Price for Small Consumers (PVPC) and time-of-use: three consumption periods, two for contracted power. Those with existing DH lose cheap hours, dropping from 14 to 8. Meanwhile, outlets like 20minutos claimed users with DH would keep two periods, with cheaper hours between 22:00–12:00 in winter and 23:00–13:00 in summer. These conflicting narratives have fueled confusion.

Complicating matters, implementation has been delayed until summer due to technical issues. This means months to decide whether changes are worthwhile and months where no one knows exactly what they will pay.

Off-peak drops from 14 to 8 hours: who really loses

Households with electric storage heaters are most affected. They already modified equipment in 2008 and now face another overhaul. One example: 6 kW contracted, three heaters, and a 200-liter water heater spread over 14 hours, with the large heater using 4.4 kW alone. With this load, the system triggers in winter as soon as washing machines and dishwashers run. Winter lasts long.

Some argue peak charges will drop, offsetting cuts. However, arithmetic shows the system aims to collect the same amount; savings previously shared by a few are now diluted among all. Those with DH funded discounts via higher peak prices; the new design equalizes everyone downward.

Can contracted power be increased without power cuts?

Power control remains unchanged for individuals. In July, the ICP withdrawal and excess penalties were announced; later, the criterion was corrected. For powers under 15 kW, limiters remain, with or without an ICP depending on the meter. Exceeding power plus a margin cuts supply, as before.

The novelty is contracting different power for peak and off-peak, with off-peak being cheaper. Power adjustments can be made free of charge, regardless of changes in the past 12 months. Conversely, some participants suspect electricity companies will start demanding certificates for power increases in older homes. Others do not see the business opportunity.

The agreement to penalize excessive consumption

The coalition agreement between PSOE and Unidas Podemos calls to reduce the percentage of the power charge and make the variable charge incremental based on energy consumed, so that initial kilowatt-hours cost less than subsequent ones. A detail unnoticed by technically trained individuals: the document reads kW/h where it should say kWh.

The underlying logic has merit, according to arguments in the thread. Higher consumption requires activating more expensive and dirty power plants, increasing the cost of every kWh. The problem is who is hit: some argue that electric heating, which emits no emissions at home, should be preserved in the decarbonization process, and those with the least ability to insulate homes or change equipment are hardest hit.

Electric cars and nuclear power: crossing fronts

Electricity prices fuel another debate: electric vehicles. Some calculate a Leaf uses 20 kWh per 100 km on highways, while a Model S uses at least 30; another participant reduces the latter to 20–25. On the country's most extended public network, charging costs 40 cents per kWh, and 32 on others, amounting to about 9 euros per 100 km versus 6 euros for gasoline cars at 1.30 euros per liter, according to these calculations. With this math, the promise of cheap mobility falls short.

Underlying this is generation. One participant argues nuclear power provides about 25% of demand with only 7% of installed capacity, with closures scheduled between 2028 and 2035. Combined cycle plants reach 60% efficiency; nuclear, less. All this intersects with the tariff deficit, the difference between system revenues and costs accumulated as debt with distributors because governments delayed passing on real costs.

What remains unanswered

It remains unclear how excess power will be billed, which periods will apply the incremental variable charge, and what happens to those already with two periods. With the regulator's circular still being finalized and implementation delayed until summer, the only firm data, according to sources, is the most painful: off-peak hours remain at eight.