Why is my electric bill so high?

Why is my electric bill so high?

Why electricity is so expensive in Spain

The electricity bill is the proof that allows you to know how much electricity you have consumed and how much you are going to pay for it. Do you know what items make up the bill? We explain how to understand and calculate your electricity bill.

Thanks to electricity bills, users know how much they have to pay for electricity in each billing period. The amount will depend on the type of electricity tariff contracted, consumption and power. To save on bills, it is essential to understand each of the elements that make up the bill.

Regardless of the electricity company that issues the bill, there are a series of common concepts. We break down the electricity bill to know each of its elements and thus understand the meaning of each one of them.

In the bills, independently of the electricity company that issues them, there are a series of common concepts. We break down the electricity bill to know each of its elements and understand the meaning of each one of them.

Electricity bill cfe

The electricity bill is basically made up of two main concepts: a fixed cost for having electricity, which is paid for each kW of contracted power, and, on the other hand, the cost of the electricity consumed in the different time slots of our tariff.

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4. Unified Supply Point Code (CUPS).  The CUPS (Unified Supply Point Code) identifies your installation unequivocally. This code remains the same, even if you change supplier.

5. Type of Contract.  With the new tariffs, in all cases it will appear that you have contracted the PVPC tariff and it will always be with hourly discrimination in 3 periods.    If you have contracted the social bonus, this space will indicate it, as well as the discount percentage applied (25% or 40%).

7. Contracted power.  At present it is possible to have 2 contracted powers, one for the peak period and another for the off-peak period, and both will be shown here. Adjusting the power to your needs is one of the measures to reduce your bill.

Why electricity is going up in Spain

The new electricity bill has introduced a series of changes in its structure. For this reason, we help you to understand your electricity bill by explaining all the new features introduced and the concepts that make up your bills.

With the new electricity tariff, users have the possibility of contracting two different power ratings for their home or business. Regulated market suppliers establish two different prices, while free market suppliers can establish the same price in both sections.

In this case we observe that the consumer has a contracted power of 5.5 kW and the maximum power reached during the previous 11 months does not exceed 4.5 kW. By reducing his power from 5.5 kW to 4.4 kW he can obtain up to a 38.34% discount on the fixed term of electricity.

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This concept is charged to customers who do not own a meter. The commercialization companies have the obligation to charge for the rent because the meter is the property of the distributor.

What is charged on the electricity bill?

For an average household (4.6 kW and 292 kWh of monthly consumption) with the PVPC tariff, the December bill rises to 119.17 euros, which is a very strong increase compared to the November bill, which already reached 95.94 euros.

OCU has denounced that due to this spectacular growth in the price of electricity, and despite the measures taken to curb it, the bill for 2021 is more expensive than the bill for 2018 discounting inflation.

On the other hand with that comparison model it will be possible to fulfill the promise since households in the free market (60%) have not suffered the price increase until their tariffs have not been renewed and therefore even for some months will have seen how their bill was lowered by the government measures. For these households in the free market, the bill increase has been delayed with respect to the PVPC.

As OCU has denounced on successive occasions, due to the lack of market transparency it is not possible to know which tariffs are active for customers in the deregulated market and therefore it is not possible to anticipate the impact of these revisions.

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