Spain's Electricity Bill: PVPC vs. Free Market Changes

The washing machine starts at midnight, and the neighbor downstairs complains. This is one of many reactions in forums regarding Spain's new electricity bill structure, which reorganizes hourly bands and extends time-of-use pricing to all consumers, regardless of their tariff. The doubt for those who optimized bills for years is direct: with this redesign, does the two-period PVPC still make sense, or is it time to look at alternatives?

What Exactly Changes in the Electricity Tariff

The adjustment is not cosmetic. The two-period time-of-use pricing—peak and valley, allowing concentrated spending—is replaced by a three-band scheme. It applies to everyone: PVPC contracts with two periods move to three, single-period ones do too, and free market contracts are not exempt.

The practical effect is that the hourly choice many had calculated to the millimeter disappears. There are no longer two periods to split consumption but three, each with its own price. For those with memorized schedules, the map breaks suddenly, along with much of their savings strategy.

Does PVPC Still Make Sense?

There is no consensus here. One school argues prudence dictates staying put: everything else ends up being more expensive. The reasoning is that the new high three-period tolls affect all tariffs, including free market ones, and suppliers will adjust prices sooner or later to avoid losses. Under this logic, PVPC remains the benchmark, and those who switch lose out.

In contrast, another view is pure calculation. Since June of the previous year, they argue, many free market rates are cheaper than the regulated option, at least for those who haven't touched their contract since April 26. They present this not as intuition but as mathematics. The unanswered question is whether PVPC will regain the advantage it held for years.

And here, nobody has a crystal ball.

The Numbers Both Sides Use

For PVPC, according to participant data, last month averaged 0.21 €/kWh, excluding the social bonus, with hours spiking to 0.35 € and others nearly given away at 0.04 €. To this figure, add the gas cap, applied around 0.13 €/kWh, though it dropped last month.

In the free market, circulating examples range from a fixed contract at 0.134 €/kWh for 24 hours to a Night Plan with 0.122 €/kWh in valley and 0.169 €/kWh in peak, maintained for nine years without renewals or surprises. There is also a free market bill of 62.79 € for 61 days and 228.627 kWh, working out to 31.40 € per month.

• PVPC: average of 0.21 €/kWh last month
• Fixed free market: 0.134 €/kWh for 24 hours
• Night Plan: 0.122 €/kWh in valley and 0.169 €/kWh in peak

Which Savings Tricks Actually Work?

The first repeated tip is lowering contracted power. Some have gone from 4.4 to 3.4 kW and keep reducing because they have surplus. To know the safe minimum, advice is to go to the distributor—not the supplier—register with the CUPS code, and check maximum demanded power, calculated by 15-minute averages, not hourly peaks shown in apps.

The second trick is less popular: the washing machine weighs little. In a typical home, heating, air conditioning, dishwasher, dryer, oven, and hob consume much more than a wash, and lighting even less. Scheduling laundry for early morning makes sense if washing hot; cold water savings are marginal.

The third, now classic, is installing solar panels, an option some participants consider.

Regarding discontent, it goes beyond technicalities. Many reactions blame the Government for rising bills, citing increases from diesel fuel to gas canisters; a circulating review points to 5% on canisters, 30% on diesel, and 45% on electricity.

The Data Nobody Wants to Look At

With the gas cap at lows, the gap between free and regulated markets has narrowed, yet some maintain a free contract is still cheaper than PVPC. The difference, they note, lies mainly in the power term.