Electricity in Spain: The Complete Expat Guide (2026)
Moving to Spain or recently arrived? This guide explains everything about the Spanish electricity market — tariff types, bills, switching provider, and how to find the best deal.
Spain's electricity market was fully liberalised in 2009, meaning you can choose your electricity supplier from dozens of competing providers. However, one regulated option — the PVPC (Precio Voluntario al Pequeño Consumidor) — remains available from the major suppliers for consumers using less than 10 kW.
The Spanish system can seem complex at first: bills are split between potencia (power capacity) and energía (actual consumption), and there are multiple taxes layered on top. Once you understand the structure, it's easy to compare tariffs accurately — which is exactly what SaveRadar does for you.
This guide covers everything a new resident needs: how to get electricity connected, the different tariff types, how to decode your bill, how to switch provider, and what your CUPS code is. By the end you'll be able to compare tariffs confidently and avoid overpaying.
Types of electricity tariffs in Spain
PVPC — Regulated tariff
The PVPC (Precio Voluntario al Pequeño Consumidor) is a government-regulated hourly tariff. The price per kWh changes every hour and is set by the grid operator (Red Eléctrica de España) based on wholesale market prices. It is only available to consumers with a contracted power of up to 10 kW.
Good for: Flexible households who can shift consumption to cheap hours (nights and weekends are typically cheaper). Risky for: Households with predictable daytime consumption — when wholesale prices spike, your bill can be much higher than expected.
Fixed-price tariff (Tarifa fija)
A fixed tariff locks in your price per kWh for a set period (typically 12 months). Your bill is predictable regardless of wholesale market movements. Most free-market providers (comercializadoras libres) offer fixed tariffs. SaveRadar compares 50+ of these tariffs.
Good for: Households wanting bill predictability and simplicity. Most expats find this easier to budget for.
Indexed tariff (Tarifa indexada)
Indexed tariffs from free-market providers track the wholesale market (OMIE pool) like PVPC, but usually with a small fixed markup instead of the regulated margin. They can be cheaper than PVPC during calm market periods but expose you to price spikes.
What is on a Spanish electricity bill?
Spanish electricity bills (facturas de electricidad) follow a standard structure regardless of provider. Here is each line item explained:
| Line item | Spanish term | What it is |
|---|---|---|
| Power charge | Término de potencia | Fixed daily charge based on your contracted power (kW). You pay this regardless of how much electricity you use. |
| Energy charge | Término de energía | Variable charge per kWh consumed. This is the main differentiator between tariffs. |
| Electricity excise tax | Impuesto Especial sobre la Electricidad (IEE) | 5.11% applied to the sum of power + energy charges. |
| Meter rental | Alquiler de contador | Fixed monthly fee (typically ~€0.81/month) for the smart meter owned by the distribution network. |
| VAT | IVA | 21% applied to all of the above. Spain temporarily reduced this to 5% during the 2022–2023 energy crisis, but it has returned to 21%. |
How to switch electricity provider in Spain
Switching is simpler than most people expect — you never lose power during the process, and your physical infrastructure (wiring, meter) remains the same. Only the billing company changes.
Compare tariffs
Use SaveRadar to compare tariffs based on your actual consumption and contracted power. Enter your monthly kWh and power to get a real monthly cost estimate including all taxes.
Have your CUPS code ready
Your CUPS (Código Unificado de Punto de Suministro) is a 20-22 character code that uniquely identifies your electricity supply point. You'll find it on any recent electricity bill. The new provider needs this to process the switch.
Sign up with the new provider
Complete the sign-up online or by phone. You'll need: your CUPS code, your NIE/DNI, your bank account (for direct debit), and the contracted power you want (in kW). The new provider handles everything with the distribution network.
Wait for activation (typically 3–21 days)
The switch takes effect on a future meter reading date. Your old provider will send a final bill for the period up to the switch date. You'll receive a welcome letter/email from the new provider confirming activation.
How to read your CUPS code
The CUPS (Código Unificado de Punto de Suministro) is a unique identifier for your electricity supply point — think of it as an address code for your meter. It is assigned to the property, not to you as a customer, so it stays the same when you switch provider.
Where to find your CUPS:
- On any electricity bill, usually near the top under "Datos del contrato" or "Punto de suministro"
- In your online account with your current provider
- On the physical meter in some cases
- By calling your current provider's customer service line
Electricity prices in Spain vs the EU
Spain historically had some of the highest electricity prices in Europe, partly due to heavy subsidies for renewable infrastructure (the "tariff deficit") and island/peninsula surcharges. However, prices vary significantly depending on the tariff type you choose.
Spain average (fixed tariff)
~€0.17–0.22/kWh
incl. all taxes, 2026 estimate
EU average
~€0.25/kWh
Eurostat H1 2025
PVPC peak hours
Variable
can exceed €0.35/kWh in high-demand periods
The best fixed tariffs on the free market in Spain can be significantly below the EU average, especially when combined with off-peak consumption habits. Comparing tariffs regularly (every 12 months) is the most effective way to keep your electricity costs down.
Compare electricity tariffs now
Enter your consumption and contracted power to see real monthly costs for 50+ tariffs — all taxes included. Free, instant, no account needed.
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