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ELECTRICITY

The cheapest rates Spain’s electricity companies don’t want you to know about

Finding a cheaper tariff is one of the best ways to counteract skyrocketing electricity bills, but a leading consumer watchdog has warned Spain’s electricity providers are not always open to telling customers about the best deal they can get.

Published: 23 September 2022 09:57 CEST
Updated: 22 October 2022 09:56 CEST
cheapest rates electricity spain
Finding the more affordable rates can be difficult to do, and often Spanish electricity companies make them deliberately difficult to get hold of. Photo: Colin Behrens/Pixabay

Like in many parts of the world, inflation triggered by the war in Ukraine has made the energy market incredibly volatile and sent household electricity bills soaring in Spain. The average bill reached €158 in August, an eye-watering increase of over 60 percent compared to 2021.

To give you some idea of just how much prices have risen in Spain, in August of 2020 the average electricity bill was €64, in 2021 it was €93, and in August 2022 €158.

According to recent figures from Eurostat, electricity bills in Spain have risen eight times more than in France and four times more than in Germany. Whereas the average Spanish household paid 60 percent more in August compared to 2021, in France it rose by just 7.7 percent and in Germany 16.6 percent.

The Spanish government has tried various methods to ease the burden on households. In June the tax (IVA) on electricity bills was cut from 21 percent to 10 percent, and then it was quickly reduced again from 10 percent to 5. The European Commission agreed to cap gas used for power generation at €40 per megawatt-hour known as the ‘Iberian Exception’, with the price limit projected to average out at €50 over the coming 12 months.

READ MORE: Spain to cut electricity tax by half to ease inflation pain 

The Spanish government predicted the measure — which will be in effect until May 31st 2023 — would lead to a reduction in household energy prices of up to 20 percent, yet it has done little to limit the rise of electricity bills so far.

READ MORE:

Unsurprisingly, many Spaniards are now seeking ways to cut down on their bills, whether it be by using the washing machine at certain times to take advantage of off-peak hours, or limiting their use of air-conditioning.

Another method of saving on electricity costs is finding cheaper tariffs.

Yet finding the more affordable rates can be difficult to do, and often the electricity companies make them deliberately difficult to get hold of. That’s according to Spain’s Organization of Consumers and Users (OCU), which have identified some of the cheapest tariffs on the market today. 

Understanding peak and off-peak

Spanish electricity companies offer different prices depending on the time of day you use your electrical appliances. The tariffs are often broken down into hora punta (peak time), hora llana (flat time), and hora valle (off-peak).

If you live in Spain, this is why you might’ve heard the incessant spinning of washing machines through the night in recent months. Nowadays many people simply wait until the weekend, when the tariffs are always off-peak.

So, if you’re thinking about switching, which are some of the best electricity rates you can find in Spain?

Repsol Tarifa Largo Plazo

According to the OCU, the Repsol Tarifa ‘Largo Plazo’ can only be found via this link, because the offer is actually hidden on the Repsol website. And for good reason, too. The Repsol tariff is among the best offers the  market in terms of price per kWh consumed, although the power for off-peak time is a little more than some of the other offers on the list.

The tariff is non-permanent, with a fixed price rate for 3 years.

kWh Prices

Price per kWh consumed: €0.17/kWh.

Peak hours: €29.90 per kW.
Off-peak hours: €29.90 per kW.

Iberdrola Online Plan

The Iberdrola Online Plan, which you can find here, is only available until September 30th, so be sure to take advantage of it as soon as possible.

Using Iberdrola’s online tool, you can select a kW rate and it will give you price estimates for the different values. If you’re environmentally minded, Iberdrola’s Online Plan claims to use 100 percent green electricity, so you can enjoy renewable energy and reduce your CO2 emissions.

There’s also 14 hours of savings during the night up until mid-morning.

This plan is only for customers who take out the contract online, as the name suggests, and features entirely electronic billing.

kWh Prices

Price per kWh consumed: €0.159353 + metered gas cost (in August €0.161529 /kWh).
Price per kW contracted during peak hours (fixed term): €30.66747.
Price per kW contracted during off-peak hours (fixed term): €4.104338. 

Not the prices will be revised in line with the Consumer Price Index (CPI) on January 1st. 

Octopus Energy

Octopus Energy tariffs are not permanent and is all done online, which allows you the flexibility to move around again in the future if you come across a better offer. Octopus offer two fixed prices:

Octopus 3: price per kWh consumed during peak hours is 0.254 €/kWh; at flat time 0.209 €/kWh; and at off-peak hours 0.185 €/kWh.

Octopus Relax: price per kWh consumed of 0.212 €/kWh.

kWh Prices (both Octopus tariffs) 

Peak hours (fixed term): €32.85.
Off-peak hours (fixed term): €6.57.

Iberdrola Special Plan

The Iberdrola Special Plan offers a 15 percent discount during the first year, and its kWh prices for both on and off-peak are competitive with other cheaper tariffs.

kWh Prices

Price per kWh consumed: €0.178662 (minus the 15 percent extra discount) but plus a gas metering cost (which in August was €0.161529/kWh.)

Peak hours (fixed term): €30.52381
Off-peak hours (fixed term): €3.512901

Endesa ‘One Luz’ Tariff 

Endesa is currently offering the ‘One Luz’ tariff, which offers a 10 percent discount on consumption and an additional 10 percent reduction throughout the first year.

kWh Prices

Price per kWh consumed: €0.189 (plus the 10 percent +10 percent discount) + the metered gas cost (which in August was €0.161529/KWh).

Peak hours (fixed term): €33.86.

Off-peak hours (fixed term): €7.9973

Total Energies

Another interesting option is Total Energies, who offer entirely personalised pricing plans. Basically, Total Energies want to attract your business by outdoing your current rate. In order to receive a quote and see how it stacks up against your current provider, you simply upload a copy of your current bill to the website and Total Energies make an offer, often bettering your current rate.

If they make an offer, Total Energies promise a discount lasting for 4 years, although the price on which the discount is fixed is only valid for 12 months.

READ MORE: 11 ways to cut costs as Spain’s electricity rates beat all-time price records

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MONEY

When should you turn down an inheritance in Spain?

There are several reasons why people increasingly turn down inheritances in Spain. Here's what you need to know about the possibilities, how it's done, and what happens next.

Published: 17 April 2024 09:04 CEST
When should you turn down an inheritance in Spain?

Apart from the death of a loved one, receiving an inheritance can also result in its own setbacks. Unfortunately, for some people, this is compounded by the fact that inheritances can become an extra source of stress, whether it be through family disputes or the bureaucratic work that follows.

Increasingly in Spain, however, people are rejecting their inheritances. Last year, Spaniards renounced more inheritances than ever before, consolidating an emerging trend in recent years and setting a record high, according to data from Spain’s General Council of Notaries.

Just over 56,100 people rejected their inheritances in all, 16 percent of the total number.

Why are they doing this, and when should you consider turning down an inheritance?

EXPLAINED: How choosing the right region in Spain can save you thousands in inheritance tax

When should you turn down an inheritance in Spain?

Traditionally, people turn down inheritances when it isn’t worth their while to receive it. In other words, usually because of the high amounts of debt the inheritance includes, meaning that the deceased has left more liabilities than assets.

This is usually much more common in times of economic downturn and uncertainty. This is why, in addition to financial uncertainty caused by the Covid-19 pandemic, the period of stagnant inflation that followed probably contributed to the number of people in Spain turning down inheritances in 2023.

Another reason that Spaniards turn down their inheritance is because doing so would not work out worthwhile after paying tax on it. This one obviously depends on how much (and the form) you are left.

Inheritance tax in Spain is levied on a regional basis. For more information on the best and worst areas for inheritance tax rates, see our coverage below.

READ ALSO: Where are the best and worst places for inheritance tax in Spain?

In cases of property inheritance, people also turn them down due high maintenance or repair costs, or because a property cannot be sold.

It may also happen that the heir named in the will has their own outstanding debts and does not want the assets inherited via the will to end up in the hands of their creditors. In these cases, the inheritance is waived so that the inheritance passes onto someone else (more on that below).

Obviously, though probably less common, some heirs renounce their inheritance out of generosity. If the heir is already wealthy, he or she may wish the inheritance goes to a relative who needs it more.

Named heirs have the right to study the contents of the inheritance in order to decide whether to accept or reject it. This is known as the right to deliberate, which is a period of 30 days in Spain.

How to renounce an inheritance in Spain

There’s a particular process for renouncing an inheritance in Spain, and a few things to know.

Firstly, even if the contents of the will are known, it cannot be renounced until the person in question dies.

Note that the decision to renounce or accept an inheritance cannot be changed, so be absolutely sure of your decision first.

If you want to renounce it, you must turn it down formally, in writing, normally before a notary or in a court of law.

Who receives the rejected inheritance?

If the principal heir turns down their inheritance, a substitute may be named in the will who will receive the inheritance in his or her place.

If no substitute is specified in the will, the inheritance is distributed in the following order, according to inheritance law experts Simarro Herencias:

Descendants (children)
Ascendants (parents, if alive)
Spouse.
Siblings, nephews and nieces.
Other family members up to the 4th degree.
The state.

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