How much does light cost?

Electricity powers your home and makes everything function each time you press a button. As a result, a bill arrives each month. Before paying it, we want you to have a good understanding of it.

Pay for your consumption and for your power

Your bill is divided into two great concepts:

1. Power: it is what allows several home appliances to function at the same time. Therefore, the more you need to turn on at the same time, the more power you’ll have to subscribe to. Power is measured in kW and you have to pay for it even if everything remains turned off. It has nothing to do with your consumption, and so you’ll have to pay the same in a month where you used the oven a lot and a month where you were on holiday and did not spend a single day at home. It is a “fixed term” that is repeated on your bill and does not change (unless you decide to change the power you subscribe to).

2. Consumption: if the power is a “fixed term” that slightly resembles a flat fee for being connected to a grid (in this case, the electrical grid), consumption is a “variable term” that you have great control over. Unlike power, your behaviour has an immediate effect on consumption. The less you use electricity, the lower your consumption is and you’ll pay less on your bill. It is measured in kWh.

For power, your decision has a big and long-lasting effect on your bill. The less power, the lower the cost...but be careful, because if you leave yourself short, your everyday life could get complicated (for example: “you’ll blow a fuse” if you try to turn on the washing machine and oven at the same time.

For consumption, your behaviour has a moderate effect and that only goes as far as you are persistent in your efficiency measures. It is here where many measures are important as well as energy savings advice.

“To save on your power, you have to pay attention when making the decision to subscribe to more or less. To save on your consumption, you must adopt sustainable habits.”

“If you're in the open market, you’ll pay what is on your contract. If you're in the regulated market, your prices change every hour.”

So, how much does electricity cost?

The answer to this question is often none other than: it depends.

If you see it from your personal point of view, that is, how much electricity is costing you, it all depends on your rate:

• If you have a tariff in the open market, electricity will cost what is on your contract, no more and no less.
• If you have the regulated market (PVPC), the prices will vary according to the supply and demand. As the entire country follows a fairly logical pattern, the prices at night (when everyone is asleep) are must lower than first thing in the morning or during supper time. The unpredictable part are the peaks and valleys. Whenever you hear in the news that “electricity prices have gone up”, they are referring to the regulated market.

If you see it from a general point of view, that is, how much electricity costs, the answer is highly complex. Electricity is generated in several plants and the companies that own those plants are those that sell energy to the supplier companies. One of these suppliers is the one that sends you the bills and with which you have a contract.

In general, if we take large periods of time (at least for several months), the electricity prices can go up or down due to factors, such as the following:

• The climate: extreme conditions increase the national consumption of energy, whether due to to excessive cold (many heaters get turned on), or due to excessive heat (many air conditioners get turned on). The stronger these extremes are, the more consumption goes up, and the more energy that must be produced. According to the law of supply and demand, the greater quantity of energy we need, the more complicated it will be supply it, and therefore, the prices are more expensive. In addition, there are conditions that can leave hydraulic plants out of commission (they generate little if it barely rains), as well as wind farms (they generate little if winds are not strong). Price reductions are also explained as follows. For example, after several consecutive days of high wind and/or heavy rain, prices plummet and sometimes come close to hitting zero.
• International geopolitics: on the other hand, other plants need fuel to function. Specifically, petroleum and/or gas. Spain imports practically all of these two raw materials, and so international political and economic circumstances can influence their price. If the price of the raw material goes up, the price of electricity that is generated goes up thanks to those circumstances.

“In general, the climate and possible economic and political crises influence the price of electricity. At the individual level, what matters is the tariff that you choose.”