How to spot a bad electricity deal in Spain

How to recognize a bad electricity contract in Spain

The best way to combat high energy prices is by being informed. Avoid being ripped off by a salesperson or confusion. Photo from endesa.

It’s no secret that understanding your electricity bill in Spain is like decoding ancient hieroglyphs. Many expats and Spanish residents are confused by the fluctuating tariffs and mystery fees as well as phone calls from salespeople promising “incredible discounts”.

You’re not the only one who has ever felt confused and suspicious when opening a factura de la Luz. A little knowledge goes a long way. Learn how to understand your electricity bills, determine if you are on the right plan, and avoid overpriced power.

What’s the difference between Fixed Tariffs and Variable Tariffs? Variable Tariffs – What’s the difference?


Tariffs for electricity in Spain are typically divided into two types: fixed-rate and variable-rate.

  • If you have a fixed rate tariff, you will pay the exact same price for each kWh of electricity no matter what time you use it. It offers stability, but the cost can increase over time.
  • Variable-rate tariffs fluctuate depending on wholesale markets and time of day. You can save money by running appliances at off-peak times, but the price will rise.

What’s the secret? Understanding your lifestyle is key. You might be able to use variable if you can control your usage and are at home during the day. If you prefer predictability, go fixed.

Check the price per kWh, not just the total


The total bill is what many people look at. This doesn’t indicate if you have a good rate. You should instead check the price per kWh.

As of 2025, a fair average price for electricity in Spain ranges between €0.12 and €0.17 per kWh, depending on your plan and provider. If you’re being charged €0.20 or more, it may be time to switch.

Beware of “permanencia clauses” – these are contract locks that penalize you if your plans change.

Sales calls are not to be taken for a ride


In Spain’s liberalized energy market, aggressive marketing is a problem. Some companies hire subcontracted call centre agents to persuade people to switch suppliers. They may pose as “officials” or make false claims that the current plan expires.

Golden rule? Cold callers should never be given your CUPS (the unique code that identifies your supply point). They can change you without your consent if they have the number.

When in doubt, ask for a written estimate and compare it against your current provider.

Compare CNMC with other CNMCs


The website of the Spanish National Commission on Markets and Competition, CNMC, offers a price comparison tool. You can compare all the certified energy companies’ offers based on your average consumption and postcode. The site is in Spanish but well worth it.

Website: Click here

Review Your Potencia (Contracted Power)


A part of your bill depends on the power you are contracted to use.

You’re probably overpaying if you live in a small apartment with a partner and pay for 6 kW. Most homes are able to run on 3,45 kW – 4.6 kW. Lowering your potencia can save you around €50 – €100 per year, with no change in comfort.


When you use electricity is important if you are on a variable rate (PVPC, PVPC-like tariffs). Rates tend to spike from 10am – 2pm and 6pm – 10pm, especially in summer. Try to run dishwashers or washing machines during midnight – 8am, when prices are typically lowest.

Last tip: Simplicity is Power


Take your most recent bill to an energy advisor you trust or to your local council if you are feeling overwhelmed. Many offer free assistance, especially to pensioners and households in need.

The best way to combat high energy prices is by being informed. Do not let confusion or an aggressive salesperson drain your pocketbook.


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About Liam Bradford

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Liam Bradford, a seasoned news editor with over 20 years of experience, currently based in Spain, is known for his editorial expertise, commitment to journalistic integrity, and advocating for press freedom.

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