Spanish electricity bills have two parts: a fixed charge for your contracted power (potencia, in kW) and a variable charge for what you use (kWh), plus taxes. You choose between the regulated tariff (PVPC), where the price varies by the hour, and a free-market tariff from a private supplier (fixed or time-banded rates). When you move into a property the supply is usually already connected — you do a change of holder (cambio de titular) into your name rather than a new connection, paying by direct debit from a Spanish account. The two things to get right are the contracted power (too high wastes money, too low trips the supply) and the tariff for your usage pattern. We set up, transfer and review electricity for expats so you're not overpaying.
How Electricity Works
Spain's electricity market separates the distribution network (the wires, run by regional distributors) from the supply company (comercializadora) that you contract with and pay. You can choose your supplier freely, and your bill reflects both: a regulated network/access cost plus your supplier's charges. For you as a household, what matters is the contract you hold — the tariff and the contracted power — and the supplier you've chosen.
Every supply point has a unique CUPS code (on any bill for the property), which identifies it for contracts and switches. Bills are typically issued monthly or every couple of months and paid by direct debit. Because the variable usage portion changes — and electricity is generally more expensive in Spain than many newcomers expect, especially with air-conditioning in summer and heating in winter — it's the utility most worth understanding and optimising. The good news is that switching supplier or tariff is free and straightforward, so you're never locked into a poor deal.
Tariffs: Regulated vs Free Market
You have two broad routes for your electricity tariff:
| Tariff type | How it works |
|---|---|
| Regulated (PVPC) | The government-regulated rate, where the per-kWh price varies hour by hour with the wholesale market. Only available on smaller contracted powers (up to 10 kW). Can be cheaper if you can shift usage to cheaper hours, but the price is less predictable. |
| Free market (fixed) | A private supplier's deal with a fixed per-kWh price for the contract term. Predictable; good if you want a stable bill and don't want to track hourly prices. |
| Free market (time-banded) | Cheaper rates at off-peak times (nights, weekends) and dearer at peak. Suits households that can run big appliances off-peak. |
There's no single "best" tariff — it depends on how much you use, when you use it, and how much predictability you want. A predictable fixed free-market rate suits many expats who'd rather not monitor hourly prices; those who can shift usage may do better on PVPC or a time-banded deal. The standard domestic tariff band is known as 2.0TD, which itself has peak, flat and off-peak time periods for both energy and power. The key is to choose deliberately rather than inherit whatever the previous occupant had or accept the first deal a salesperson pushes. We review usage and recommend a sensible tariff for clients.
Contracted Power (Potencia)
Your contracted power (potencia) is the maximum electricity you can draw at any one moment, measured in kilowatts (kW), and you pay a fixed daily charge based on it — regardless of how much you actually use. It's one of the most important and most misunderstood parts of a Spanish electricity contract:
- Too high and you pay an unnecessarily large fixed charge every day, year-round, for capacity you never use.
- Too low and the supply trips out (salta el ICP) when you run several appliances at once — the oven, washing machine and air-con together, for example.
Common domestic contracted powers run from around 3.45 kW for a modest flat up to 5.75 kW or more for a larger home with air-conditioning and electric heating. Under the 2.0TD tariff you can even contract two different power levels for peak and off-peak periods. The right figure depends on your home's size, what runs simultaneously, and whether you have power-hungry items like air-con or a pool pump. Because it directly affects the fixed part of every bill, getting the potencia right is the single biggest lever on your standing costs — and reviewing it when you take over a property (the previous owner's level may not suit you) is well worth doing. We assess and adjust contracted power for clients.
Don't just inherit the previous owner's potencia
When you take over a property, the contracted power was set for the previous occupant. If it's higher than you need, you're paying a daily fixed charge for nothing; if it's too low, your supply will trip. Reviewing and adjusting the potencia to match your actual usage is one of the easiest ways to cut your electricity standing cost.
Reading Your Bill
A Spanish electricity bill (factura de la luz) can look dense, but it breaks down into a few key parts:
- Power term (término de potencia) — the fixed charge for your contracted kW, billed per day regardless of usage.
- Energy term (término de energía) — the variable charge for the kWh you actually consumed in the period.
- Electricity tax (impuesto sobre la electricidad) and meter rental — small additional regulated items.
- IVA (VAT) — added on top.
The bill also shows your CUPS code, your tariff, contracted power, the billing period and meter readings. The two figures to watch are the power term (which you reduce by lowering contracted power if it's too high) and the energy term (which reflects your usage and tariff). If a bill looks unexpectedly high, check whether it's an estimated rather than actual reading, whether your usage genuinely spiked (summer air-con is a common cause), or whether the tariff or power is wrong. We help clients read and sanity-check their bills, and query errors with the supplier.
Setting Up or Transferring
How you get electricity depends on the property:
Existing, active supply — change the holder
Most common. Do a cambio de titular into your name using the CUPS, your NIE, IBAN and proof of occupancy. The supply keeps running; only the account holder changes.
New build or long-disconnected — new connection
Requires an electrical certificate (boletín / CIE) from a registered electrician and an inspection, so it takes longer. Needed where the supply has never existed or has been off for a long period.
Choose tariff and contracted power
Set the potencia to match your home and usage, and pick a tariff (regulated or free market) that suits you.
Set up the direct debit
Point the bills at your Spanish IBAN so they're paid automatically — and keep the account funded.
The transfer route is far quicker and cheaper than a new connection, so finding the CUPS and confirming the supply is active is the first thing to do. New builds and properties that have been empty for years are the cases that need a boletín and take longer — worth identifying early. We handle both routes for clients, gathering the documents, dealing with the supplier in Spanish, and setting the tariff and power sensibly.
Switching Supplier
Switching electricity supplier in Spain is free, doesn't interrupt your supply, and doesn't require any work at the property — the new supplier handles it using your CUPS. You can switch to get a better tariff, move from the regulated to the free market (or back), or leave a supplier whose deal has worsened. There's no physical change; it's purely a contractual switch.
The things to watch are: contract terms (some free-market deals have a minimum period or a penalty for early exit — check before signing), introductory rates that rise after a few months, and door-to-door or phone sales that push deals which aren't the best for you. Because switching is easy and free, it's worth reviewing your electricity every year or two against your actual usage. We can review your current deal and, where it makes sense, arrange a switch to a better-suited tariff — without the hard-sell, and in plain English.
How We Help
We get expats' electricity set up, transferred and optimised. We find the CUPS, handle the cambio de titular or arrange a new connection with a boletín, set a sensible contracted power and tariff for your home and usage, point the bills at your Spanish IBAN, and review existing contracts to see if you're overpaying. It's part of our relocation and property support, and our gestoría service can monitor bills for non-resident owners. In English, on a clear quote — supplier connection fees are separate. Book a consultation to sort your electricity.
Related Guides
Frequently Asked Questions
Spanish electricity bills have two parts: a fixed charge for your contracted power (potencia, in kW) and a variable charge for what you use (kWh), plus taxes and VAT. You choose your supplier (comercializadora) freely and your tariff — the regulated PVPC rate, which varies by the hour, or a free-market deal with fixed or time-banded prices. Every supply point has a unique CUPS code. Bills are paid by direct debit. The two things that most affect what you pay are your contracted power and your tariff, both of which you can change. We set up and optimise electricity for expats.
Contracted power is the maximum electricity you can draw at one moment, measured in kW, and you pay a fixed daily charge based on it regardless of how much you actually use. Too high and you overpay the fixed charge every day; too low and the supply trips out when you run several appliances together. Domestic powers commonly run from around 3.45 kW for a small flat to 5.75 kW or more for a larger home with air-conditioning. Getting the potencia right is the biggest lever on your standing costs, so it's worth reviewing when you take over a property. We assess and adjust it for clients.
The regulated tariff (PVPC) is a government-set rate where the per-kWh price varies hour by hour with the wholesale market; it's only available on smaller contracted powers (up to 10 kW) and can be cheaper if you shift usage to cheaper hours, but it's less predictable. A free-market tariff from a private supplier offers a fixed or time-banded price that's more predictable. There's no universal best choice — it depends on your usage and how much predictability you want. Many expats prefer a fixed free-market rate for a stable bill. We review usage and recommend a sensible tariff.
If the supply is already active (the usual case), you do a change of holder (cambio de titular) into your name using the CUPS code, your NIE, a Spanish IBAN and proof of occupancy — the supply keeps running and only the account holder changes. For a new build or a property disconnected for a long time, you need a new connection, which requires an electrical certificate (boletín) and an inspection and takes longer. Either way you then choose your contracted power and tariff and set up the direct debit. We handle both routes for clients.
Common reasons are: a contracted power set too high (you pay a large fixed daily charge for capacity you don't use); a poor or inherited tariff; high usage, especially air-conditioning in summer or electric heating in winter; or an estimated rather than actual meter reading. Electricity is generally more expensive in Spain than many newcomers expect. Check the power term and energy term on the bill, confirm the reading is real, and review whether your power and tariff suit you. We help clients sanity-check bills, adjust contracted power, and switch to better-suited tariffs.
Yes, and it's free, doesn't interrupt your supply, and requires no work at the property — the new supplier handles it using your CUPS. You can switch for a better tariff, move between the regulated and free markets, or leave a supplier whose deal has worsened. Watch for minimum contract periods or early-exit penalties on some free-market deals, introductory rates that rise later, and aggressive door-to-door or phone sales. Because switching is easy, it's worth reviewing your electricity every year or two. We can review your deal and arrange a switch where it makes sense.
The CUPS (Código Universal del Punto de Suministro) is a unique code identifying your electricity supply point. It appears on any electricity bill for the property and is what suppliers use to contract, transfer or switch your supply. Having it to hand makes everything quicker, so before you take over a property, ask the seller, landlord or agent for a recent bill so you have the CUPS. We always obtain it as the first step when setting up or transferring electricity for clients.
If you try to draw more power at once than your contracted potencia allows — for example running the oven, washing machine and air-conditioning together — the supply cuts out automatically and you have to reset it at the consumer unit. It means your contracted power is too low for your usage. The fix is to either run fewer high-demand appliances simultaneously or increase your contracted power (which raises the fixed daily charge slightly). Getting the potencia right balances avoiding trips against not overpaying. We assess and adjust contracted power for clients to strike that balance.