The new electricity tariff is on everyone’s lips. We know that there are different time slots in which electricity is more expensive and others in which it is cheaper, but do you know anything else? In today’s post we try to explain a little about the objective of this change, the consequences on our consumption and some tips. Let’s get started!

What is the change about?

We can see 3 important changes in access tariffs for domestic use, i.e. low voltage (below 1 kV) and with a power up to 15 kW:

  • The six different access tariffs for domestic use are converted into a single toll: 2.0TD. Tolls or access tariffs are costs that are paid through the electricity bill and refer to the transport and distribution of energy.
  • The periods of hourly discrimination will change.
  • You will be able to contract the power according to the time slot, and you will be able to maintain it if you wish.

The aim of this change is, according to sources from the National Commission for Markets and Competition (CNMC): for consumers to optimise their bills and, at the same time, to avoid stressing the grid by shifting consumption from peak to off-peak hours, thus reducing the costs of the electricity system and contributing to the decarbonisation of the economy.

New electricity tariff timetables

This new electricity billing model, which will be in force from 1 June 2021, offers three different billing periods for all domestic consumers: peak, flat and off-peak.

  • Punta, where charges will be higher, will be between 10 a.m. and 2 p.m., and between 6 p.m. and 10 p.m.
  • Llano, with an intermediate cost, will be between 8am and 10am, 2pm and 6pm, and between 10pm and midnight and midnight.
  • Valle, the cheapest of the three, will be between midnight and 8 a.m., and will apply during all weekend and public holiday hours.

Who is affected?

These changes will affect all consumers, although for those in the free market, the impact will depend on how it is passed on by the retailer.

  • For consumers on the regulated market or PVPC, the reference retailers must apply the new prices.
  • In the case of consumers on the free market, the supplier must adapt the contract price to incorporate the difference in regulated costs. In this case, it can choose between:
    • Adapt the contract price to the new energy and power periods.
    • Maintain the price brackets that the consumer had previously agreed in his contract, transferring to the price the difference in costs that would result for his consumption profile.

In any case, it is important that the marketer communicates these changes to the consumer sufficiently in advance and in a clear and transparent manner so that the change in tolls and charges is properly communicated to the consumer.

Consequences of the new electricity tariff

The impact on the bill will be different for each consumer. Generally speaking, the power term will be cheaper and the energy term will be more expensive. This will benefit supply points with smaller consumption and photovoltaic self-consumers. In short, the amount of the bill will depend more on when the consumption is made and less on the quantity.

We are all for saving energy, if you want tips on how to be more energy efficient in your day-to-day life and the benefits of self-consumption, check out our other blog posts!