A complete expat guide to setting up and paying for electricity (luz) in Spain — choosing your supplier, understanding tariffs, reading the bill, and avoiding the mistakes that cost expats hundreds of euros a year.
Electricity in Spain (la luz) is one of the most confusing bills new arrivals face. Tariffs change throughout the day, the bill is full of acronyms, and you can choose between the regulated PVPC market and dozens of free-market suppliers.
This guide walks you through choosing between Iberdrola, Endesa, Naturgy, Repsol and TotalEnergies; whether PVPC or a fixed contract is right for you; how to read your factura de la luz; how to set up direct debit (domiciliación); and how to switch supplier without losing power for a second. We'll also cover the Bono Social discount, the CUPS number you'll need, and why your insurance and electricity contract should always be in the same name as the property owner or tenant.
Coming from the UK, Ireland, USA, Australia or anywhere else, the Spanish system has quirks that will catch you out if you don't plan for them.
Spain uses a dual-market system. The regulated market offers a tariff called PVPC — Precio Voluntario para el Pequeño Consumidor — where the kWh price changes every hour. The free market lets private suppliers sell you fixed-price contracts, often with discounts or off-peak deals.
The regulator overseeing the whole system is the Comisión Nacional de los Mercados y la Competencia (CNMC). They set rules for switching suppliers, supervise pricing transparency and protect consumer rights — including your right to switch supplier free of charge.
Three things to know up front:
Six fundamentals every expat needs before signing a contract or paying a bill.
PVPC is the regulated tariff with hourly variable pricing — cheaper on average but volatile. Free-market contracts are fixed-price for 12 or 24 months: predictable but historically more expensive. Around 40% of Spanish households are still on PVPC.
Every factura has two main charges: the término fijo (fixed term based on contracted power × days) and the término variable (kWh consumed × hourly price). Add tolls, electricity tax (5.11%) and 21% VAT for your total.
Direct debit (domiciliación bancaria) is by far the easiest — bills are pulled from a Spanish IBAN every 1–2 months. You can also pay online via the supplier's app, at a bank counter, or in cash at certain Correos branches.
CNMC rules guarantee free switching with no power interruption — your new supplier handles everything. The change usually takes 15–21 days. You don't need to tell your old supplier; they're notified automatically through the distributor.
Domestic supplies up to 15 kW use tariff 2.0 TD with three time bands. Larger supplies and small businesses use 3.0 TD with six bands. Discriminación horaria is the old name for time-of-use pricing — now standard for almost everyone.
Low-income households, large families, pensioners on minimum pensions and vulnerable consumers can apply for the Bono Social — a 25–80% discount on the PVPC tariff. It also protects against supply disconnection in winter.
Whether you've just collected the keys or you've been here for years and are tired of overpaying, this guide is built for you.
Sorting your bills and direct debits? Make sure your home insurance is sorted too.
Get a Home Insurance Quote →The single biggest decision you'll make. Get it right and you can save €100–€400 a year on a typical household.
The PVPC is only available from a small list of state-supervised "reference suppliers". The biggest are Curenergía (Iberdrola), Energía XXI (Endesa) and Naturgy's reference arm. The price varies hour-by-hour following the wholesale market. Since the 2021 energy crisis the government has added stabilisation mechanisms, but PVPC remains the tariff most exposed to market swings.
Free-market contracts come from Iberdrola, Endesa, Naturgy, Repsol, TotalEnergies and dozens of independents. They typically lock in a price for 12 months and almost always include "loyalty discounts" that disappear after year one.
| Feature | PVPC (Regulated) | Free Market |
|---|---|---|
| Who can offer it | Only 8 reference suppliers | Any licensed commercialiser |
| Price stability | Hourly variable | Fixed 12–24 months |
| Contract duration | Open-ended, leave anytime | Permanence clauses common |
| Bono Social eligibility | Yes | No |
| Best for | Households shifting load to off-peak | Predictable budgeting, larger households |
If you're new to Spain and don't yet know your usage pattern, sign up to the PVPC with a small reference supplier for 6 months, collect data, then decide whether a fixed contract would be cheaper. There's no penalty for leaving PVPC at any time.
Spanish bills are notoriously dense. Here's what each section means.
Every factura has the same major blocks. Working from top to bottom:
CUPS (Código Universal del Punto de Suministro) identifies your meter and never changes, even if you switch supplier 50 times. NIE/NIF is your foreign-resident or tax ID number — required on every contract. Always check both are correct on every bill.
Whether you're a new buyer or a tenant, here's how to get the supply in your name.
If the property already has an active supply (alta), you just need to change the titular. If it's been disconnected (baja), you'll apply for a new connection — that can cost €100–€200 and take 30 working days.
To change the titular you'll need:
The process:
Just moved in? Lock in home insurance the same day — landlord cover doesn't protect your belongings.
Get a Home Insurance Quote →Iberdrola, Endesa, Naturgy, Repsol and TotalEnergies dominate the market.
Iberdrola — Spain's largest electricity supplier with the biggest share of renewables. Strong app, transparent pricing, English-speaking customer service in major cities. Plan Estable for fixed pricing, Plan Online for paperless discounts.
Endesa — The historic incumbent in Catalonia, Andalucía and the Balearics. Tariffs include One Luz, Tempo Happy (two free hours daily) and Tempo Verde (100% renewable).
Naturgy — Strongest in gas but a major electricity player. Useful for dual fuel. Por Uso (pay-per-use) and Tarifa Plana (flat-rate) options.
Repsol — The petroleum giant entered electricity in 2018 and competes aggressively on price. Discounts at Repsol service stations make this attractive if you drive a lot.
TotalEnergies — Bought Spain's EDP residential business and now offers fixed-price plans with strong renewable credentials. Particularly competitive for 2.0 TD domestic.
Beyond the big five, independents like Holaluz, Octopus Energy España, Imagina Energía and Lucera often beat the majors. Always compare against your last 12 months of consumption — never a generic "average household".
Your potencia contratada determines a daily fixed charge whether you use any electricity or not. On 2.0 TD you choose between 0.345 kW and 15 kW. Most Spanish homes are contracted at 4.6–6.9 kW — far more than needed.
Add up wattages: electric oven 2.2 kW, dishwasher 2 kW, washing machine 2.2 kW, kettle 2 kW, aircon 1 kW, fridge and lights 0.5 kW. Pick something that fits 90% of real usage. Reducing from 5.75 to 3.45 kW typically saves €70–€100 per year. You can reduce once every 12 months at no cost. The Instituto para la Diversificación y Ahorro de la Energía (IDAE) publishes free calculators to size your demand.
Spanish suppliers offer multiple payment methods, but the smart move is almost always domiciliación bancaria.
Direct debit — The supplier issues the bill and the bank pulls the money automatically. Most suppliers offer a small monthly discount, and you can reverse an incorrect charge for up to 8 weeks under SEPA rules.
Online card — Pay each bill manually via the supplier's app. Useful if you don't yet have a Spanish bank account but want to start consuming immediately.
Bank counter or app — Take the bill (which has a barcode) to any branch of BBVA, CaixaBank, Santander or your own bank, or scan the barcode in your banking app.
Cash at Correos — Some suppliers let you pay in cash at participating post offices, useful for elderly relatives without online banking.
If a payment bounces: the supplier will retry within 10 days and may add a fee of around €5–€15. Three failed payments in a row can trigger a supply cut-off — though CNMC rules require at least 2 months' notice and Bono Social households are protected during cold-season cut-off bans.
If you change Spanish banks, the supplier won't automatically update your IBAN. Notify them within 24 hours of any account change — preferably before any pending bill is presented. Otherwise you'll have a failed-payment fee plus a strongly-worded letter.
Spanish consumer law gives you the absolute right to switch electricity supplier at any time.
The CNMC guarantees that switching electricity supplier:
The only catch is the permanence clause (cláusula de permanencia). Many free-market contracts lock you in for 12 or 24 months. Leaving early triggers a penalty of around €30–€60 per remaining year. Always check before signing — and never accept a permanence period over 12 months unless the discount is exceptional. The PVPC has no permanence clause; you can leave at any time.
Step-by-step to switch:
If you're on a low income, pension, or are a large family, the Bono Social can cut your bill by 25–80%.
The Bono Social de Electricidad is a government-funded discount applied to the PVPC tariff. You can apply if you fall into one of these categories:
Apply via one of the reference suppliers (the ones offering PVPC). Submit income certificates, the family book, and disability or pension documents. The Bono Social is renewed every 2 years. Beyond it, regions and town halls offer subsidies for solar self-consumption, insulation and efficient appliances — check with your local ayuntamiento and the IDAE.
After helping thousands of expats navigate Spanish utility contracts, here are the six errors we see most often.
The questions expats ask us most often about Spanish electricity contracts.
Yes, but only some suppliers let you pay by card via their app, and you'll likely lose the direct-debit discount. The smarter route is to open a non-resident account at a Spanish bank (most allow this with just a passport and NIE) and use that IBAN.
If the property has no prior supply, you'll need a Boletín de Instalación Eléctrica from a registered electrician, then apply for new alta with the distributor. Allow 30–60 working days plus a connection fee of roughly €120–€220 depending on region and contracted power.
The distribuidora (e.g. i-DE in Iberdrola territory, e-distribución in Endesa territory) owns the wires, meters and pylons. You can't choose them — they're set by region. The comercializadora is the supplier who sells you the electricity; you can freely choose any of them. Your bill is from the comercializadora.
If the contract is in your name, no. You have full CNMC-protected freedom to choose. If the supply is still in the landlord's name (and they invoice you), they technically control it. Always insist on transferring the titular into your own name on a long-term let.
Yes, since June 2021. Off-peak (valle) is 00:00–08:00 weekdays plus all weekends and national holidays. Peak (punta) is 10:00–14:00 and 18:00–22:00 weekdays. Middle (llano) is the rest. Time-shifting your washing, dishwasher and aircon can cut bills 15–25%.
You'll still pay the término fijo every month even with zero consumption. Lowering contracted power before a long absence saves real money. Don't cancel the contract entirely — re-connection fees are higher than 6 months of standing charges, and you'll lose your CUPS history.
For most homeowners south of Madrid, yes. Payback periods are typically 6–9 years for a 3–5 kWp installation, and surplus production is compensated by your supplier under the "compensación de excedentes" scheme. Iberdrola, Endesa and Naturgy all offer turnkey solar packages.
Electricity contracts and home insurance are separate but related. Insurers want to see a valid Boletín de Instalación and a properly contracted meter with an ICP (control switch). For solar installations, you must declare them — otherwise any fire or storm claim involving the panels can be denied.
Sorting your electricity supply and tariff is half the battle. The other half is making sure your home — and the contents inside it — are insured by a Spanish-regulated insurer who will pay out without arguing about translation, paperwork or jurisdiction. 247 Expat Insurance arranges DGSFP-regulated home insurance for expats across mainland Spain, the Balearics and the Canaries.
Get a Home Insurance QuoteWe arrange Spanish home, health, car and life insurance for British, Irish, American, Australian, Canadian and South African expats living in Spain. Every policy is issued by an insurer regulated by the Dirección General de Seguros y Fondos de Pensiones — Spain's national insurance regulator — so claims are paid under Spanish law, in Spain, by a Spanish entity. No grey-area UK policies that may not respond to a Spanish loss.
