Tariffs in Spain Explained: How to Make Sure You’re on the Right One
- Ana Saez Garcia
- Feb 1
- 3 min read
If you live in Spain and feel confused every time you look at your electricity or gas bill, you’re not alone. One of the biggest reasons expats overpay is simply being on the wrong tariff — often without realising it.
At Compare The Mercado, we regularly review bills where the supplier is fine, the meter is fine, but the tariff itself is completely unsuitable for how the home is used. In this guide, we’ll explain tariffs in Spain in plain English, so you can understand what you’re paying for and why it matters.
What does “tariff” mean in Spain?
In Spain, a tariff is not just the price per kWh. It’s a combination of:
How electricity or gas is priced
When it’s cheaper or more expensive
Whether prices are fixed or variable
Two neighbours can be with the same supplier and pay vastly different amounts each month, purely because they’re on different tariffs.
Electricity tariffs in Spain explained
Fixed tariffs
A fixed tariff means your unit price stays the same 24 hours a day. Your bills are more predictable, and you’re protected from sudden market increases.
This type of tariff is often best for:
Full-time residents
Families
Anyone who prefers stability
Anyone who has high on-peak usage
Please be aware that some fixed tariffs expire after 12 months and automatically revert to higher rates if not reviewed.
Variable tariffs
Variable tariffs move with the wholesale energy market.
Advantages:
Can be cheaper when market prices fall
Typically ,standing charges (Potencia) is lower
Disadvantages:
Prices can rise quickly
Bills are harder to budget
There is typically an additional charge on each bill to cover the utilities margin, as everything is charged at cost
Many expats are placed on variable tariffs by default without being clearly told.
Time-of-use (day and night) tariffs
These tariffs charge different prices depending on the time of day:
Higher rates during peak hours
A Middle rate during 'Flat' hours
Lower rates overnight or off-peak
They only work well if your energy usage matches the cheaper periods. A common mistake is being on a time-of-use tariff while using most electricity during the day.
Gas tariffs in Spain explained
Gas tariffs are simpler than electricity, but are still often incorrectly applied or unnecessarily expensive.
Common issues include:
Low gas usage homes on tariffs designed for high consumption
Expensive legacy contracts never reviewed
Gas tariffs should also be reviewed regularly, especially if how you use the property changes.
Why so many expats are on the wrong tariff
The most common reasons include:
The tariff was inherited from the previous owner
The contract was set up by a developer or estate agent and never reviewed
Language barriers
Solar panels installed but the tariff never updated
Being with a well-known supplier does not automatically mean you’re on the right tariff.
Do you always need to change supplier?
Not always, however, often utilities will only offer their best deals to new customers or those brought to them by intermediaries.
In many cases, savings come from:
Adjusting potencia alongside the tariff
Matching the tariff to how the home is actually used
Removing unnecessary products and services that have been added to existing bills
Solar homes: tariffs matter even more
If you have solar panels, tariffs become even more important.
Common problems include:
Remaining on a standard tariff after installation
Poor feed-in rates for exported energy
Potencia not adjusted
Exporting energy at basic market rates
Not being on a time-of-use tariff
This is why some people still have high bills despite having solar.
How to know if your tariff is right
Ask yourself:
Do I know which tariff I’m on?
Does it match how often the property is used?
Has it been reviewed in the last 12 months?
Has anything changed recently, such as solar installation or occupancy?
If you’re unsure, it’s likely time for a review.
Final thoughts
Tariffs in Spain are not one-size-fits-all. The right tariff depends on your usage, how often the property is occupied, whether you have solar, and how comfortable you are with price changes.
A simple review can often reduce overpayment without disruption or complicated switching.
Frequently Asked Questions
Do tariffs in Spain change often?Yes. Prices and conditions can change regularly, especially at the start of the year.
Is a fixed tariff always better?Not always, but many expats prefer them for predictability.
Should I review my tariff every year?Yes, even if nothing else changes.
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