PVPC vs Fixed Electricity Tariffs in Spain: Which Costs Less?

Spain has two main electricity pricing models: PVPC (the regulated tariff with hourly prices set by the government) and fixed-rate contracts (where you lock in a price per kWh for a set period). For most small apartments using under 3,000 kWh/year, PVPC often comes out cheaper — but if you have a villa, a pool pump, or you’re home all day, a fixed tariff can be the smarter call.

What Is PVPC and How Does It Actually Work?

PVPC — Precio Voluntario para el Pequeño Consumidor — is Spain’s regulated electricity tariff, set by Red Eléctrica de España (the national grid operator) and published every day for the following 24 hours. The price changes every single hour, reflecting real-time demand and wholesale energy costs on the mercado eléctrico.

Only a handful of suppliers can offer PVPC: Endesa, Iberdrola, Naturgy, EDP, Repsol, and a few others that are “reference retailers” (comercializadoras de referencia). If you’ve never changed your electricity contract since moving in — or if you inherited the previous tenant’s setup — there’s a decent chance you’re already on PVPC.

The key thing to understand is that PVPC is not a fixed price. On a Monday morning in January, electricity might cost EUR 0.22/kWh. At 3am on a Sunday in spring, that same kilowatt-hour might cost EUR 0.04. The price you pay each month is an average of all the hourly prices weighted by when you actually used power — which means your bill can look wildly different month to month even if your consumption habits don’t change much.

The Three Time Bands Under the 2.0 TD Tariff

Since June 2021, all domestic electricity contracts in Spain (PVPC and fixed) fall under the 2.0 TD access tariff. This structure divides the day into three pricing periods that affect both your energy consumption charge and your potencia contratada (contracted power capacity) charge:

• Punta (Peak): 10:00–14:00 and 18:00–22:00 on weekdays. This is when electricity is most expensive under PVPC and when your capacity charge is highest.
• Llano (Shoulder): 08:00–10:00, 14:00–18:00, and 22:00–00:00 on weekdays. Mid-range pricing.
• Valle (Off-peak): 00:00–08:00 every day, plus all day Saturday, Sunday, and national public holidays. Cheapest electricity of the day.

These bands apply regardless of whether you’re on PVPC or a fixed contract — though how each supplier prices the three bands varies considerably. Under PVPC, the government sets the punta price; under a fixed tariff, your supplier sets a flat rate across all three periods or offers differential pricing for each band.

Fixed-Rate Tariffs: What You’re Actually Buying

A fixed-rate tariff from a private supplier (comercializadora libre) means you agree to pay a set price per kWh for a defined period — typically 12 months, sometimes longer. The rate is locked in when you sign the contract and doesn’t move with the wholesale market.

The headline number you’ll see advertised is usually the energy price per kWh. But your actual bill has more components:

• Término de energía: The cost per kWh consumed. Under a fixed tariff, this might be EUR 0.155/kWh across all hours, or EUR 0.12/kWh in valle and EUR 0.19/kWh in punta.
• Término de potencia: A monthly standing charge for your contracted capacity (measured in kW). A standard 3.45 kW contract costs around EUR 4–6/month in fixed charges; 5.75 kW runs EUR 7–10/month.
• Impuesto sobre electricidad: 5.1% electricity tax.
• IVA: 21% VAT on most of the bill (10% on certain elements — your bill will itemise this).
• Bono social: A small levy that funds the social electricity bonus for low-income households.

When comparing tariffs, make sure you’re comparing the total monthly cost at your actual consumption level — not just the per-kWh energy rate. A supplier offering EUR 0.13/kWh energy but charging EUR 15/month in potencia and fees might be more expensive than one at EUR 0.16/kWh with EUR 5/month standing charges, depending on how much electricity you use.

Typical Monthly Costs: Apartment vs Villa

Here are realistic cost scenarios for 2025–2026, using average consumption figures for the Costa del Sol:

Small Apartment (2 beds, 1–2 people, 200 kWh/month, 3.45 kW contracted)

Scenario	Estimated Monthly Bill
PVPC (average year)	EUR 38–52
PVPC (winter peak months)	EUR 55–80
Fixed-rate tariff (EUR 0.155/kWh flat)	EUR 42–48

Villa (4 beds, 3–4 people, pool, A/C, 700 kWh/month, 5.75 kW contracted)

Scenario	Estimated Monthly Bill
PVPC (average year)	EUR 130–175
PVPC (summer A/C heavy use)	EUR 160–240
Fixed-rate tariff (EUR 0.155/kWh)	EUR 140–165
Fixed with valle pricing (shift loads to 00:00–08:00)	EUR 105–135

These are rough estimates — your actual bill depends heavily on your contracted power, consumption patterns, and which months you’re comparing. The only way to get a precise figure is to pull 12 months of your own usage data from your electricity invoice or from your supplier’s online portal.

When PVPC Wins

PVPC works in your favour when:

• You’re flexible about when you use power. If you can run the dishwasher, washing machine, and tumble dryer at midnight instead of 7pm, you’ll catch the cheapest valle rates. On a good night in spring, you might pay EUR 0.04–0.06/kWh for those loads.
• You travel frequently. Empty apartment = near-zero consumption. With PVPC, your bill naturally drops to almost nothing. On a fixed tariff, you still pay the standing potencia charge regardless.
• Wholesale energy prices are low. In years with strong renewables output and mild weather, the average PVPC price can undercut fixed-rate offers significantly.
• You have a smart meter (contador inteligente). Without one, your supplier estimates your consumption and applies average hourly rates rather than your actual usage pattern — you lose the benefit of shifting loads to cheap hours.

When Fixed-Rate Wins

A fixed tariff makes more sense when:

• You have predictable high consumption. Villas with pools, underfloor heating, or multiple A/C units benefit from the cost certainty — especially if wholesale prices are volatile.
• You work from home all day. If your laptop, screens, and coffee machine run all morning through peak hours, you’re paying top PVPC rates. A flat fixed price removes that pain.
• You don’t want to think about it. Genuinely. Tracking hourly prices and scheduling appliances is a real commitment. Many people are better off paying a small premium for simplicity.
• Energy prices spike. In 2021–2022, PVPC bills nearly doubled for many households as wholesale gas prices surged. Fixed-rate customers were insulated (though many found their contracts weren’t renewed at the old rate).

How to Compare Tariffs Properly

The Spanish government runs an official comparator called CNMC Factura de la Luz (cnmc.es/cnmcblog/comparador-de-ofertas-de-gas-y-electricidad). It’s genuinely useful — you input your annual consumption and it shows real offers from licensed suppliers.

To use it effectively, you need:

1. Your annual consumption in kWh. Find this on your most recent electricity bill under consumo anual estimado or pull 12 months from your supplier’s app.
2. Your contracted power in kW. Also on your bill — typically 3.45 kW, 4.6 kW, 5.75 kW, or 6.9 kW for domestic properties.
3. Your CUPS number. The 22-character code starting with “ES” that identifies your connection point. See our guide on how to find your CUPS number.

When comparing offers, apply a 10–15% scepticism discount to fixed-rate headline prices. Suppliers often advertise the energy rate prominently while burying potencia charges in the small print. The only number that matters is the total annual cost at your consumption level.

Understanding Your Discrimination Horaria Options

Discriminación horaria — time-of-use pricing — is not a separate tariff. It’s a feature available under both PVPC and most fixed contracts that prices the three daily bands (punta, llano, valle) differently rather than applying a flat rate.

Under standard PVPC without discriminación horaria, you still pay different prices each hour — but you don’t control when those price changes happen. With discriminación horaria activated (sometimes called the “two-period” or “three-period” option), your bill is calculated using the distinct band pricing, which gives you a clearer target for shifting consumption.

The practical upside: valle hours cover all of Saturday, Sunday, and public holidays. If you do your laundry, run the pool pump, and charge your EV on weekends, you could cut your energy consumption cost significantly — potentially by 30–40% on the consumption component (not the standing charges, which are fixed).

The catch: you need a contador inteligente (smart meter) installed and communicating with your supplier. Most properties built or renovated after 2009 should have one. If yours isn’t sending data, call your supplier’s distribution network line — not the commercial sales line — and request a remote activation.

How to Switch Tariffs or Suppliers

Switching from PVPC to a Fixed Tariff (or Vice Versa) With the Same Supplier

This is the simplest change. Call your supplier or log in to their app, select a new tariff, and confirm. Changes typically take effect from the next billing cycle. There are no penalties for switching within the same supplier on a standard domestic contract.

Switching to a New Supplier

The process is straightforward by EU law:

1. Contact your new chosen supplier with your CUPS number, NIE/DNI, and current contract details.
2. The new supplier handles the switch paperwork — you don’t need to cancel with your old supplier.
3. There are no cancellation fees on regulated tariffs or standard free-market contracts unless you signed a fixed-term contract with an explicit penalty clause (read the small print).
4. Timeline: 3–20 working days from sign-up to your new supplier taking over. There’s no interruption to your electricity supply.
5. You’ll receive a final bill from your old supplier and a first bill from the new one within 30–45 days.

Practically, the easiest suppliers for expats to deal with (English-language customer service, decent apps) are Holaluz, Octopus Energy Spain, and Endesa. Naturgy and Iberdrola are large and competent but their customer service varies wildly by region.

For more detail on reading your electricity bill, see our guide on understanding your Spanish electricity bill.

Common Mistakes to Avoid

• Comparing kWh rates without potencia charges. A supplier advertising EUR 0.11/kWh sounds amazing — until you notice their standing charge is EUR 22/month. Run the full annual cost calculation.
• Signing a fixed-term contract with penalty clauses. Some commercial suppliers (mainly targeting small businesses but occasionally residential) include EUR 100–300 early termination fees. Avoid any contract over 12 months unless you’ve read and understood this clause.
• Assuming your contracted power is right for your property. Many expats inherit contracts with too-low contracted power (3.45 kW for a 3-bed villa with A/C is almost always insufficient). Your ICP (interruptor de control de potencia) will trip constantly. Increasing your contracted power costs a one-time fee of roughly EUR 30–80 depending on the jump, plus a slightly higher monthly potencia charge — usually worth it.
• Ignoring the bono social. If your household income is below roughly EUR 22,000/year (the threshold varies), you may qualify for a 25–65% discount on your electricity bill. It’s applied automatically in some cases but often requires a separate application via your supplier.