By Andrew Atkinson

Electricity prices will be presented under a new format in Spain from June 1 under a Government consumption scheme intended to be more efficient and sustainable.

Customers are in the regulated market and in the free market with changes in the price you pay and with the invoice informing customers which category you are in.

The electricity market was regulated and prices were set by the government but they were deregulated in 1997. Since 2009 consumers have been able to choose their supplier and to who they are going to pay their bill.

Currently the market liberalisation process is not complete, and the regulated market still exists. The two markets share two of the three basic parts of each electricity bill:

Access fees: set by the government and used to pay the costs of maintaining the electricity grid and transporting the electricity to your home.

Taxes: Special tax on electricity and VAT.

10.7 million customers are in the regulated market (PVPC) which had six rates. As of June 1, everyone contracting less than 15 kW will go to a single rate and billed on what time of day they use electricity divided into three time-bands:

Peak: Most expensive between 10am-2 pm and 6pm-10 pm, Monday to Friday.

Middle: Intermediate cost. Between 8am-10am;  2pm-6pm and 10pm-12 p.m, Monday to Friday.

Low: Cheapest rate between midnight and 8am, Monday-Friday; weekends and national holidays.

Peak hour rates will be 2.5 times more expensive than the middle tariff, which will be more than 1.5 times the low tariff, figures according to calculations by energy consultancy Ingebau.

If you don’t do anything to change your electricity consumption your bill will be neutral.

The changes are being made for consumption to periods in the day when there is less demand and ultimately to renewable energy supplies, of which changes are to be included in the Government’s commitment to a green economy.

With the arrival of the electric car the government are acting now so vehicles can be recharged during the night, when electricity will be cheaper, reducing the demand on the network during the daytime working hours.

The new electricity bill will allow you to contract two suppliers – at present only one is in place – one for peak periods and for middle or low consumption.

If you do not contact your company supplier, a single power supply will be maintained, the one you currently have contracted.

In the new bill, the fixed price for power goes down and the variable part goes up, the consumption we have every day.

These changes will be automatic for those who are in the regulated market.

Those who are in the free market – 16 million – will have to consult with their relevant company about the prices and packages offered.

Invoices from June 1 will have a new design for those in the regulated market incorporating a QR code that will take you directly to the CNMC rate comparer, enabling a choice choose the best rates according to needs.

Consumption prices in your postcode: https://comparador.cnmc.gob.es/