# What you need to know before contracting electricity

If you are about to contract electricity and you have doubts, this is all you need to know before contracting an electricity tariff.

## What you need to know before contracting electricity

Is this the first time you have contracted your electricity supply? Do you wish to change your company or tariff? Here is a brief guide to what you need to take into account when contracting electricity.

### 1. How much power do you need?

Power is the starting point and is an important factor in determining the type of contract you need to formalise.

What does "electrical power" mean? It is the number of kilowatts (kW) that you are able to use simultaneously on the electricity network in your home.

Here is a simple example: There are times in your house when you are hardly using any devices, for example, at night. All the lights are probably switched off and there is almost no device in operation, maybe you are charging your mobile.

But in the morning, there may be quite a number of appliances working at once: An electric water heater while one person showers, someone who has already showered using a hair dryer, the washing machine has just been switched on, you are using the microwave and the toaster to prepare breakfast, maybe the TV in the background and some lights. As electricity used by all these devices converges, the power you need increases. If this power exceeds what you have contracted, there will be a power cut.

It is easy to understand that, the more power you have contracted, the more devices you can connect at the same time and the more powerful they can be.

But there is something else you need to know about the power: the more power you contract, the higher your electricity bill. Why is this? The electricity bill is calculated by means of two variables: Consumption and power, the latter is a fixed cost and increases the more power you contract.

This is why it is highly recommended that you carefully consider the type of appliances you will use in your home, the power they require and how many of them you will use at once, so you can adjust the maximum power you contract to make your home comfortable without incurring unnecessary expenses.

### 2. How do you consume electricity?

The second factor you need to take into account when signing a new electricity contract is how you are going to consume your energy. This is closely related to the previous point, since depending on your appliances and the use you make of them, you can first establish how much power you need, and then, what type of contract best suits your lifestyle.

You need to think about whether you consume electricity homogeneously (if your consumption is similar throughout the day), whether there are times of the day when you consume more and if those moments coincide with the same period of the day or on different days. You should also bear in mind how easy or comfortable it would be to adapt your lifestyle to the characteristics of the tariff you are going to contract.

### 3. Choose the best tariff in accordance with your consumption

Taking into account all the above, now you need to study the tariffs that exist on the market and see which ones are more adapted to the power you need and how you consume electricity.

There are tariffs that invoice the kWh at the same price throughout the day, so you do not need to worry about using the washing machine when it is cheaper.

Then there are tariffs with time discrimination, which have time bands when the price per kWh is lower and you can take advantage to use any appliances you need.

There are also tariffs that concentrate the cheapest time bands at the weekend, for those who are only at home on those days.

Households with a higher consumption and business premises are able to contract tariffs that combine different powers and discrimination by time band.

## What is the difference between a flat-rate tariff and a fixed quota?

These two modalities often cause some confusion. Here is what each exactly consists of:

• Flat-Rate Tariff: the consumer always pays the same quota for the entire duration of the contract. T calculate the quota, previous consumption is taken into account and a maximum consumption is established and this should not be exceeded. If it is exceeded, there is no penalty but the distributor may propose a change of tariff. This type of tariff is especially suitable for those who can control their consumption within the parameters of the contract.

At Endesa, we offer Única d'Endesa, which is much more than a flat rate.

• Stable quota: In this tariff, the consumer pays a fixed amount every month while the contract is in force and there is no limit to consumption. It may be regularised at the end of the year: The retailer will have to pay you the kWh that you have not consumed, but it will also charge you for those that you have consumed in excess of the limit included in the contract. This tariff generally includes taxes.

At Endesa we offer you our One Luz rate with a stable price per kWh.

#### Main features of a flat-rate tariff and a stable quota

Flat-rate tariff Stable tariff
Same quota Fixed amount
There is a maximum consumption limit There is no consumption limit
There are no penalties Regularisation at the end of the year: the company pays for kWh not consumed or penalises if the price limit is exceeded

### 4. What is the origin of the electricity you are going to consume?

For more and more consumers, the origin of energy is decisive when signing a contract. There are companies that guarantee the green origin of the energy they supply. The Spanish Markets and Competition Commission (CNMC) provides digital certification to support the origin of renewable energies and high-efficiency cogeneration.

### 5. Check how much your electrical appliances consume

As we pointed out at the beginning of the article, the power of your domestic appliances and how you use them is decisive. This means that it is recommended to have domestic appliances with the highest possible energy efficiency certification, which will help you to optimise consumption. You should also understand that good maintenance not only extends their lifecycle, it also helps their use to remain as efficient as established on the label. If you are going to buy a new device or replace one you already have, study the characteristics carefully to make sure it is suitable and meets your expectations.

Finally, we recommend that you read your contract carefully before signing it. There may be some details that you have overlooked and that involve conditions. If there is anything you do not quite understand in your contract, ask the company's sales representative for any further information you may need. Check that your data and the data for the property are correct. Only sign when you are 100% sure.

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## All about Endesa's electricity tariffs

Take a look and learn all about Endesa's electricity tariffs: here you will find the tariff that best suits your needs.

## Comparison of Electricity and Gas Tariffs

You don't need to adapt to Endesa's tariffs because they adapt to you. If you go to our catalogue you can compare the different tariffs for yourself. Or if you prefer, you can answer a few questions and we will take care of comparing all the different electricity and gas tariffs and then make a customised recommendation.

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