Advantages and disadvantages of both markets
There are differences between one market and another, so it is up to you to choose the one that suits you best according to your priorities. Below we set out for you the most important differences between the two:
PVPC Regulated Market
The rate regulated by the Ministry is called the PVPC (Voluntary Price for Small Consumers).
The biggest advantage and at the same time the biggest drawback is that it changes every day and every hour. Therefore, its price varies depending on what the electricity market dictates. For example, electricity is more expensive in winter and summer, as there is more energy demand for the use of heating and air conditioning. On the other hand, it is cheaper in spring and autumn, when temperatures are more stable.
The price is also affected by trends (up or down) that can occur in the electricity market due to any external factors.
On the other hand, when the price is applied to each consumption at that specific time, each consumer, depending on their times of consumption and their habits, will obtain a different price, so fluctuations in the price will make it practically impossible to know how much we are going to pay for our daily consumption.
The regulated PVPC rate is offered only by some providers. Furthermore, their number is limited and they cannot sell the energy in the free market, nor do they allow you to contract other services.
It does not have a minimum contract duration, it is compatible with time-of-use (TOU) rates and can only be contracted if you have less than 10 kWh of power.
Free Market Rates
Free market rates have the main advantage that, as the name implies, they are set freely. Therefore, discounts can be applied, supplies can be combined (electricity + gas) and they are usually much more stable for the consumer.
This allows you to know in advance how much you are going to pay and that, in some cases, your electricity will be even cheaper than if you had contracted a rate in the regulated market. With freedom of rates, you can get a great price if you adapt to the type of consumption that costs you the least based on your rate and, also, if you change your lifestyle, you can always find a rate adapted to it.
On the other hand, the negative part can be that the consumer is required to pay more attention when contracting their rate (since each one adapts to a certain type of consumption) and, in addition, the rates may be revised over time.
Can you change from one market to another?
Of course. Liberalisation means just that - being able to choose. Anyone who wants to change from the PVPC rate is welcome to use the free market. Consumers who are on the free market can change to the regulated market, as long as their contract power is not above 10 kW.
All consumers are entitled to change to the free market whenever they wish.