In view of the changes introduced by the electricity reform

Madrid 2 September 2014

The electricity reform has brought consumers a new formula for calculating the price of electricity which means the application of 24 different prices every day for the consumer subject to the Voluntary Price for the Small Consumer (PVPC in Spanish). This further complicates - if this were possible - the complexity of an energy bill that most consumers do not understand.
In addition there have been changes in the weighting given to power and consumption so that in the new bill the level of power contracted is more important than actual consumption, something which discourages energy saving in the opinion of OCU.

Repeated changes in the electricity system have ensured that consumers do not know the details of the tariffs they have contracted. 25% of consumers admit to not knowing if they have contracted the PVPC (the voluntary price for the small consumer) or if, on the other hand, they are on the open market. This situation is compounded by the misleading advertising and aggressive marketing techniques that are used by the electricity companies to attract customers and that can lead them to choose an inadequate tariff which increases the already high electricity costs.

In this new scenario which is the result of electricity reform OCU gives a number of tips to consumers to save and reduce their electric bill:
•  Reduce power. In most households between 3.3 and 4.4 kW is enough power. Check your bill for the electrical capacity you have contracted and if you have more than you need, maybe you could reduce it (depending on the appliances in your home). You'll save about 60 euros per year per kW that you cut. The change costs only 11 euros but some companies block the request by asking for a new certificate if the previous installation is more than 20 years old.
•  Find out the new prices. If you are offered an alternative to the PVPC rate, remember these numbers: disregard anyone who charges over 42.04 euros per year per kilowatt of contracted power (0.1152 euros per day). For the electricity consumed € 0.11 per kWh per day is a good price and above 0.13 is expensive. Do not forget to pay attention to all the decimals in your tariff.
•  Beware of misleading advertising. Do not be tempted by discounts that do not clarify on what price and concept they are based: 10% of a low price can be much better than 20% of an expensive price.

•  Be careful with clauses of permanence. Reject offers that do not clarify whether they assume some term of permanence and accept only if the offer is good. Remember that PVPC has no permanence.
•  Find out about the system of tariff revision. The offers on the open market usually have their own system of tariff revision: some guarantee not to raise the energy component for a year but others include quarterly or arbitrary reviews depending on market developments.
•  Contract hourly rate discrimination. If you think you can divert 30% of your electricity consumption to off-peak hours (from 22:00 hours to 12:00 hours) this rate will allow significant savings.
•  Pay attention to PVPC variations. Price changes of the new PVPC can be a serious problem for some households with tight economies. This particularly affects, customers with heating accumulators that are under PVPC. Three quarters of this consumption is concentrated in the winter months and due to the volatility of PVPC if your peak consumption coincides with a rise in price, this could prove costly.

•  Ask for the social bond to be applied. If you qualify (less than 3 kW contracted, large family, all family members unemployed or retired with minimum pensions), the savings can be 200 euros per year, by applying 25% on the PVPC.
•  Take care with maintenance services. A good tariff that obliges you to contract an expensive maintenance service can be a bad deal for the consumer. If the maintenance service is one of the conditions, OCU recommends that you study the price and look at alternatives (maintenance may already be contracted through your bolier’s maintenance service or on your home insurance). These services are also annual and many companies require payment of the full year if you decide to cancel and switch to another company.
•  Be energy efficient. Good habits, such as using efficient light bulbs or not leaving appliances on stand-by, can reduce energy consumption up to 15% or, in other words, around €80 per year.
For more information (media) Eva Jimenez Tel:   917 226 061
prensa@ocu.org