How much does electricity cost?
Posted: Sat Dec 14, 2024 8:49 am
Everyone knows how much they are paying on their bill, but who knows how much electricity costs? Electricity has a price and you can know it, just as you can know the value of a gram of gold or silver. Of course, everything changes depending on the rate you have contracted.
Electricity powers your home and keeps everything running whenever you flip a switch. In return, a bill arrives every month. Before you pay it, we want you to understand it well.
You pay for your consumption and your power
Your bill is divided into two main concepts:
1. Power: This is what allows a number of appliances to be working at the same time. Therefore, the more you need to turn on at the same time, the more power you will have to contract. Power is measured in kW and you have to pay for it even if everything remains off. It has nothing to do with your consumption, so you will pay the same in a month in which you used the oven a lot and in a month in which you were not at home for a single day because you went on vacation. It is a “ fixed term ” that is repeated on your bill and that does not change (unless you decide to change your contracted power ).
2. Consumption: if power is a “fixed term” that is vaguely reminiscent of a fee for subscribing to a network (in this case, the electricity grid), consumption is a “ variable term ” over which you have a lot of control. Unlike power, with consumption your behaviour has an immediate effect. The less you use the light, the less electricity you will consume and the less you will pay on your bill. It is measured in kWh.
When it comes to power, your decision has a big and lasting effect on your bill. Less power means less cost… but be careful, because if you fall short, your daily life can become complicated (for example: " the fuses will blow " if you try to turn on the washing machine and the oven at the same time).
When it comes to consumption, your behaviour has a moderate effect and only lasts as long as you are persistent in your efficiency measures. This is where the many energy saving measures and tips come in .
"To save on your power you have to pay attention to whether you contract more or less. To save on your consumption you have to adopt sustainable habits."
We'll call you for free!
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We will contact you shortly.
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How much your consumption and power cost
As we have already told you, power is measured in kW and consumption in kWh. Both kW and kWh are sold and bought at certain prices . To calculate your bill, it is as simple as multiplying the number of kW of your contracted power (or the number of kWh you have consumed that month) by the price of the same.
When it comes to knowing the price, there is a fundamental greek telegram difference. In Spain there are two large markets for energy:
Free market: it works more or less like other liberalised markets, for example the mobile tariff market. There are many companies to choose from and each of them has many tariffs. You find out which one suits you best and you sign up for it. You will pay what is stated in your contract , both for the kW of power and for the kWh of consumption. There are big differences between tariffs and between companies. When you get tired of it, you can easily change electricity company (or tariff).
Regulated market: this market is regulated by the Government, so there are only 5 companies that can provide service and all of them offer the same rate: the PVPC , in its modalities with and without time discrimination. The prices of the PVPC rate are set by a complex system. Each hour of each day has a different price, so it is difficult to predict exactly how much you will pay for the electricity you will consume next week, for example.
If you're lost right now, grab one of your recent bills and check this content to find out which electricity market you're in .
"If you're in the free market, you pay what's in your contract. If you're in the regulated market, your prices change every hour. "
We advise you!
But then, how much does electricity cost?
The answer to this recurring question can only be one: it depends .
If you look at it from your personal point of view, that is, how much the electricity is costing you, it all depends on your rate:
If you have a free market rate , your electricity will cost you what is stated in your contract, no more and no less.
If you have the regulated tariff (PVPC) , prices will fluctuate according to supply and demand. As the whole country follows a fairly logical pattern, prices at night (when everyone is asleep) are much lower than in the morning or at dinner time. What is quite unpredictable are the peaks and dips. Every time you hear on the news that "the price of electricity has gone up" they are referring to the regulated market .
If you look at it from a general point of view, that is, how much does electricity cost, the answer is very complex. Electricity is generated in a variety of power plants and the companies that own these plants are the ones that sell the energy to the marketing companies. One of these marketing companies is the one that sends you the invoices and with which you have a contract.
Electricity powers your home and keeps everything running whenever you flip a switch. In return, a bill arrives every month. Before you pay it, we want you to understand it well.
You pay for your consumption and your power
Your bill is divided into two main concepts:
1. Power: This is what allows a number of appliances to be working at the same time. Therefore, the more you need to turn on at the same time, the more power you will have to contract. Power is measured in kW and you have to pay for it even if everything remains off. It has nothing to do with your consumption, so you will pay the same in a month in which you used the oven a lot and in a month in which you were not at home for a single day because you went on vacation. It is a “ fixed term ” that is repeated on your bill and that does not change (unless you decide to change your contracted power ).
2. Consumption: if power is a “fixed term” that is vaguely reminiscent of a fee for subscribing to a network (in this case, the electricity grid), consumption is a “ variable term ” over which you have a lot of control. Unlike power, with consumption your behaviour has an immediate effect. The less you use the light, the less electricity you will consume and the less you will pay on your bill. It is measured in kWh.
When it comes to power, your decision has a big and lasting effect on your bill. Less power means less cost… but be careful, because if you fall short, your daily life can become complicated (for example: " the fuses will blow " if you try to turn on the washing machine and the oven at the same time).
When it comes to consumption, your behaviour has a moderate effect and only lasts as long as you are persistent in your efficiency measures. This is where the many energy saving measures and tips come in .
"To save on your power you have to pay attention to whether you contract more or less. To save on your consumption you have to adopt sustainable habits."
We'll call you for free!
We clarify your doubts about rates and help you hire
We will contact you shortly.
Enter your phone number
Enter your phone number
Send
I have read and accept the Data Protection Policy .
How much your consumption and power cost
As we have already told you, power is measured in kW and consumption in kWh. Both kW and kWh are sold and bought at certain prices . To calculate your bill, it is as simple as multiplying the number of kW of your contracted power (or the number of kWh you have consumed that month) by the price of the same.
When it comes to knowing the price, there is a fundamental greek telegram difference. In Spain there are two large markets for energy:
Free market: it works more or less like other liberalised markets, for example the mobile tariff market. There are many companies to choose from and each of them has many tariffs. You find out which one suits you best and you sign up for it. You will pay what is stated in your contract , both for the kW of power and for the kWh of consumption. There are big differences between tariffs and between companies. When you get tired of it, you can easily change electricity company (or tariff).
Regulated market: this market is regulated by the Government, so there are only 5 companies that can provide service and all of them offer the same rate: the PVPC , in its modalities with and without time discrimination. The prices of the PVPC rate are set by a complex system. Each hour of each day has a different price, so it is difficult to predict exactly how much you will pay for the electricity you will consume next week, for example.
If you're lost right now, grab one of your recent bills and check this content to find out which electricity market you're in .
"If you're in the free market, you pay what's in your contract. If you're in the regulated market, your prices change every hour. "
We advise you!
But then, how much does electricity cost?
The answer to this recurring question can only be one: it depends .
If you look at it from your personal point of view, that is, how much the electricity is costing you, it all depends on your rate:
If you have a free market rate , your electricity will cost you what is stated in your contract, no more and no less.
If you have the regulated tariff (PVPC) , prices will fluctuate according to supply and demand. As the whole country follows a fairly logical pattern, prices at night (when everyone is asleep) are much lower than in the morning or at dinner time. What is quite unpredictable are the peaks and dips. Every time you hear on the news that "the price of electricity has gone up" they are referring to the regulated market .
If you look at it from a general point of view, that is, how much does electricity cost, the answer is very complex. Electricity is generated in a variety of power plants and the companies that own these plants are the ones that sell the energy to the marketing companies. One of these marketing companies is the one that sends you the invoices and with which you have a contract.