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Types of electricity rates: know them all

We explain what types of electricity rates there are so that you can find the one that best fits your needs.

There are a variety of types of electricity rates to choose from. When deciding, find out about their characteristics and how they work. In this way, you will understand which one best fits your consumption habits and, at the same time, offers you the possibility of saving the most on your bill. We explain the main types of rates that exist.

 

Flat rate

A flat rate is a fixed monthly amount, regardless of the amount of electricity your home consumes. In other words, even if your consumption varies, you will always pay the same amount at the end of the month.

This rate is especially suitable for homes whose occupants do not want to be worried about their energy consumption. For example, homes that consume a significant amount of electricity on air conditioning or electric heaters.

Perhaps you are thinking about something more than a flat rate (because we always want to pay the same amount, or perhaps you don't know exactly when you use energy and that is why you haven't even considered a different rate...

Don't worry if you have no idea when you use the most energy.

Fixed rate

A fixed rate has one single price per kWh, regardless of when the electricity is used. This means that it doesn't matter what time you turn on your washing machine or your electric heating, because the price you pay for each kWh you consume will be the same.

This type of rate suits households that are concerned about their electricity consumption but need flexibility and cannot worry about the times at which they are going to use electricity. In these cases, due to their lifestyle, there are people who cannot keep to a routine when it comes to cooking, doing laundry or taking a shower. Therefore, it is difficult for them to concentrate their consumption into certain hours when electricity is cheaper.

Endesa offers these households a very competitive fixed rate, the One Luz Rate. You will have a constant price throughout the day, so that you can stop worrying about getting organised and concentrating your consumption during pre-set hours. With this rate, you control the amount of electricity that you use, knowing that the price will always be the same.

Hourly discrimination rates

These types of rates, hourly discrimination rates, respond to a very simple fact: the price of energy varies from hour to hour. And from one day to the next. There are many factors involved in kWh price fluctuations. The important thing is that retailers can maximise these differences and offer their customers more competitive prices depending on the time of day the electricity is consumed. The more demand there is for electricity, the higher the price per kWh. At night, there is usually less demand for electricity, so off-peak rates are common, taking advantage of the lower energy prices at night. But there are also other rates that offer you the possibility of organising your consumption to save on your electricity bill.

"Hourly discrimination rates respond to a very simple fact: the price of electricity varies from one hour to the next".

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Off-peak rate

An off-peak rate offers cheaper prices per kWh during the night. There are many people who spend most of the day away from home because they are working. Only when they get home can they carry out all their domestic activities, such as cooking, watching the television, using the washing machine or dishwasher, taking a shower, drying their hair or using the heating. If you are able to concentrate all that consumption into the evening and night, an off-peak rate may work out to be the most beneficial.

At Endesa, we have our own off-peak rate, one of the most competitive in terms of hourly discrimination. It is the One Luz Nocturna Rate, with the advantage of a cheaper price for the electricity that you use between 10 p.m. and 12 noon in winter and between 11 p.m. and 1 p.m. in summer. If your way of life allows you to organise yourself so that all your electricity consumption comes during these hours, this is your rate.

Other hourly discrimination rates

Endesa has two other hourly discrimination rates so that you can choose the one that best suits your way of life.

If you can maintain a regular routine, concentrating your electricity consumption into one two-hour period, always at the same time of day, the Tempo Happy 2Hours rate is your rate. Concentrate your consumption into the two-hour period each day that you choose. Everything you consume during those two hours will be free.

If your lifestyle does not allow you to have a fixed routine but you are interested in the hourly discrimination model, we have another type of rate for you. The Tempo Happy 50Hours Rate offers you, for free, the 50 hours with the highest consumption during the month. In other words, you won’t have to worry about watching the clock: consume electricity at your own pace and, at the end of the month, on your bill you will see that the 50 hours in which you used the most electricity cost 0.

Green Rates

A green rate is one in which 100% of the energy consumed comes from renewable energy sources. These rates are aimed at consumers who are concerned about sustainability  and energy efficiency.

To guarantee that the electricity comes from a sustainable source, your bill from the retailer that supplies your electricity must also come with an Electricity Guarantee of Origin Certificate, issued by the National Commission of Markets and Competition (CNMC). This document certifies that the kWh were generated from renewable energies and comply with the European Guarantee of Origin and Electricity Labelling System.

"With Tempo Verde Supervalle 100% of the energy you use comes from renewable energy sources".

At Endesa, we have a green rate, the Tempo Verde Supervalle Rate. This type of rate is specially designed for homes with occupants who have environmental concerns. It is perfectly suited, for example, to owners of electric cars, since they can charge them at night, between 1:00 a.m. and 7:00 a.m., when the price per kWh is cheaper.

There are other types of electricity rates that include joint billing with the gas supply or include some extra services.

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