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PVPC: what is the regulated tariff?
The Voluntary Price for Small Consumers (PVPC) is Spain's regulated electricity tariff. Its main feature is that the price you pay for electricity is set daily for each time band of the following day, and it does not vary from one company to another. If your contracted capacity does not exceed 10 kW and your electricity consumption habits adapt to the cheapest hours, the PVPC can be a great way to save money. Let's take a look at how it works.
How does the PVPC differ from free-market tariffs?
The fundamental difference between the regulated tariff and free-market tariffs lies in who decides the prices and how.
For the regulated PVPC tariff, the price of electricity is managed daily by the Iberian Energy Market Operator (OMIE), using an auction and calculation system regulated by the Government.
In the free market, however, each company decides the prices it offers to its customers based on its own criteria, provided it complies with the conditions set by the National Markets and Competition Commission (CNMC).
In addition, three conditions distinguish the PVPC from free-market tariffs:
- To have a PVPC tariff, your contracted capacity must be equal to or less than 10 kW, whether you are a residential customer or a micro-enterprise.
- The PVPC can only be contracted through regulated reference suppliers, which must be separate companies from those operating in the free market.
- To benefit from the Social Bonus subsidised rate on electricity, you must have a PVPC contract.
Who can sign up for the PVPC in 2026?
Any individual or small business whose contracted capacity does not exceed 10 kW at their supply point (CUPS) can sign up for the PVPC.
Currently, nearly 3 out of 10 Spanish households are on this type of contract. One reason for this is that it provides access to the Social Bonus, which benefits around 1.7 million customers according to data from the Ministry for the Ecological Transition and the Demographic Challenge (MITECO).
Another reason is the progressive overhaul of how prices are calculated, which has historically been characterised by sharp fluctuations between the different time bands of the day. As of 2026, these peaks have been smoothed out somewhat, thanks to the introduction of additional long-term valuation factors.
How the PVPC is calculated in 2026
On 1 January 2026, a reform of the system for setting the regulated price of electricity in Spain, which began two years earlier, was completed. The goal, driven by the European Union, was to reduce the weight of the most immediate and volatile factors in this calculation: daily demand, production capacity, weather conditions, and fluctuations in the cost of gas for electricity production, among others.
Thus, the new model assigns a 55% weighting to energy futures markets, which are more stable and predictable, leaving just 45% to daily and intraday variations, which are the most volatile.
This measure aims to protect consumers from extreme spikes in the daily cost of electricity, without losing the underlying purpose of the system: steering consumption towards the times of greatest electricity generation capacity through variable prices throughout the day.
While this does not necessarily mean prices will be cheaper or more expensive for any given time band, or from one day to the next, the new calculation formula does provide a lower degree of uncertainty, as far as possible, regarding price fluctuations.
Why does the PVPC now incorporate futures prices?
Thanks to its medium- and long-term view, the energy futures market provides a cost forecast that is less heavily influenced by day-to-day immediacy.
Imagine, for example, that tomorrow at midday there is neither sun nor wind, and that much of the energy we need will depend on gas, the price of which has hypothetically risen again; the resulting PVPC will inevitably be high. Conversely, if most of the electricity at a quarter past twelve can be produced by solar photovoltaic plants, whose cost is minimal compared to gas, the PVPC for that period will be practically free.
This 'rollercoaster' and its impact on your bill are partly mitigated by introducing the relative stability of futures, as they are a longer-term financial tool (predicting, for example, how the price of electricity will vary between now and the end of autumn).
Therefore, in the new PVPC calculation, what happens every hour tomorrow dictates less than half of the price, while the more stable and predictable financial side – the futures market – carries more weight.
Is the PVPC still different every hour?
Actually, since October 2025, the PVPC has been different every 15 minutes. For most small consumers, however, the average hourly price continues to be applied. This is because most of the electricity meters in our homes cannot measure intervals shorter than an hour.
The price is set for such brief periods because of the variability of energy sources, as we saw earlier: the availability of renewable sources changes at every moment of the day. And, consequently, so does the cost of generating electricity.
The other factor affecting the price is demand, which also varies. There are hours when consumption is very high – combining industries, businesses and homes – which drives up the cost of electricity. These are known as 'peak periods' in the PVPC system. At other times, such as overnight and at weekends, the overall demand for electricity drops and prices fall, giving rise to the cheapest bands or 'off-peak periods'.
When and where to check the daily PVPC
The complete list of prices for each day is published by Red Eléctrica de España on its ESIOS information website, as well as by the National Markets and Competition Commission. You can also check it on Endesa's Electricity Price page, where we include comparisons, relevant information and money-saving tips.
The PVPC and off-peak, shoulder and peak hours: are they the same thing?
Off-peak, shoulder and peak hours are the way PVPC prices are grouped into periods that divide the week up as follows:
| Periods: | Time bands: |
Prices: |
|---|---|---|
|
Off-peak |
|
Usually the cheapest |
|
Shoulder |
|
Usually intermediate prices |
|
Peak |
|
Usually the most expensive |
These periods therefore become a way to simplify the PVPC, helping consumers to shift their electricity usage towards the cheapest bands of the day and week.
Are off-peak hours always the cheapest on the PVPC?
Almost always (and that is their original purpose), off-peak hours are cheaper than shoulder and peak hours. As we saw in the table, they coincide with the times of lowest industrial and commercial activity, which account for the largest percentage of energy demand. When demand is lower, generation and distribution costs are also lower, and this is reflected in the price of electricity.
However, there can be situations where off-peak hours are not so cheap, and may even become the most expensive times of the day. This happens, for instance, on very warm summer nights that trigger the massive use of air conditioning.
Because of this, it is highly advisable for anyone with a PVPC contract to check the prices every day and choose when to consume electricity, rather than simply relying on the usual averages for each period.
The time-of-use pricing model in the free market
Although PVPC contracts are exclusive to the regulated market, various companies have transferred the concept of time-of-use pricing to the free market.
As such, tariffs like Endesa's Conecta 3 Periods adopt the off-peak, shoulder and peak schedule, but offer a set price for each entire period, helping you know exactly how much you will pay at any given time of the day.
How the PVPC applies to your consumption and bill
When you have a PVPC contract, the items on your bill are very similar to those in the free market, with a few nuances:
Contracted capacity
On the PVPC, you can contract two power capacities: one for peak periods (P1) and another for off-peak periods (P2). This is a fixed cost and includes transmission and distribution network charges, as well as the regulated retail margin.
Energy consumption
Although the total cost appears at the top, the bill also includes a breakdown of the kWh consumed and their average price for each period.
The Social Bonus
If you have been granted the Social Bonus, in addition to the discount, you will see a funding charge allocated to the supplier, as well as any possible penalties if you have exceeded the consumption limit set by the regulations for your bonus.
The electricity meter
Electricity meter rental is another standard item, and is common to both PVPC and free-market bills.
Taxes
Electricity is taxed on every bill with two taxes: the electricity tax and VAT (or IGIC in the Canary Islands). Both apply equally whether you are in the regulated or the free market.
The PVPC and the Social Bonus
As we mentioned, to apply for the Social Bonus, you need to have a PVPC contract and meet the requirements set out in the regulations.
Depending on your circumstances, this bonus applies a percentage discount to your monthly electricity bill; you can check the amounts on the website of the Ministry for the Ecological Transition and the Demographic Challenge.
Three concepts related to the Social Bonus appear on the beneficiaries' bills:
- The discount applied to the total cost of the contracted capacity, up to a certain limit of energy consumed.
- Any excess consumption above the bonus limit, which is billed without a discount.
- A small amount dedicated to financing the Social Bonus by the supply company.
How to know if your tariff is PVPC or free market
Checking whether your electricity contract belongs to the PVPC system or the free market is as simple as looking at the top of your bill.
If the billing company is listed as a 'regulated supplier' (comercializadora regulada), your tariff is PVPC. You can also check the 'Contract details' (Datos del contrato) section, which will state if it is a PVPC tariff, if it belongs to the regulated market and, where applicable, if it is a PVPC with the Social Bonus (along with the applied discount).
How to switch your electricity contract to the PVPC
PVPC contracts can only be taken out with regulated reference suppliers; you can view a list of them via this link.
The law prohibits companies in the free market from managing these types of contracts, so it is common for the same corporate groups to have different brands for each market.
To switch, you just need to request it from the regulated supplier of your choice. However, you need to bear two things in mind:
- Your contracted capacity must not exceed 10 kW.
- You must have a meter capable of measuring hourly consumption.
Can you switch back from the PVPC to the free market?
The conditions and prices offered by companies in the free market, in an increasingly competitive sector, mean that a high percentage of consumers are choosing to leave the PVPC.
The switch is free of charge and does not involve any supply interruptions; you simply contact the new company and sign a contract for the tariff that suits you best.
When switching from one system to another, your supply point code (CUPS) – which is like an ID card for your meter – remains the same.
Which is cheaper, the PVPC or the free market?
It all depends on how you consume electricity at home.
The PVPC can bring significant savings if you constantly monitor the price per kWh for every hour of the day, every day. And if your lifestyle allows you to take advantage of the cheapest periods to run your most energy-intensive appliances.
The risk lies at the opposite extreme: if you put a washing machine on without first checking the price of electricity at that time, you could end up paying a much higher price than in the free market.
Free-market options
Free-market tariffs, on the other hand, can offer greater peace of mind in exchange for slightly lower potential savings.
To achieve this, companies have different tariff models geared towards meeting your needs and adapting to your lifestyle:
- Time-of-use tariffs, for example, maintain a more stable price for each PVPC period, without actually being the PVPC: very cheap in off-peak periods, intermediate in shoulder periods and higher in peak periods. They are a good alternative for spreading your consumption over broader periods, without having to keep an eye on the exact price every hour of the day.
- Constant-price tariffs provide even more peace of mind to households that cannot choose when to use electricity. The price is the same for every hour of every day, and these are becoming increasingly relevant in the face of constant rises in electricity costs. In fact, there are now constant tariffs that guarantee the price over the long term, such as for 3 years or even 5 years, in response to current uncertainty.
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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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