The electricity price in Spain is influenced by many factors and can vary greatly from day to day and hour to hour.
The Spanish electricity system is part of a liberalized market where prices are set based on supply and demand. A large proportion of households have variable electricity contracts, which means the electricity price follows the market prices in real time.
This causes the price of electricity to be very low during certain times of the day, when there is a surplus of renewable energy such as solar or wind power, but also very high during periods of high demand or shortages in production.
In recent years, electricity prices in Spain have increased, particularly during the energy crisis in Europe, where high gas prices and geopolitical uncertainty have had a major impact.
At the same time, Spain has made large investments in renewable energy, which in the long term can contribute to more stable and lower prices.
As a result, many consumers have started to adjust their electricity consumption to the cheapest hours of the day, which is possible thanks to digital electricity meters and access to real-time data on electricity prices.
Here you can follow the electricity price in Spain day by day, hour by hour (click on the date you want to check).
On January 1, 2025, the VAT (IVA) on electricity was reinstated at 21%. It had been reduced to 10% in recent years. This means an increase in the electricity bill of approximately €5.42 per month, equivalent to roughly €65 per year for an average household.
For households with an annual consumption of 3,500 kWh and an installed power of 4.6 kW, the Organization of Consumers and Users (OCU) estimates that the electricity bill will rise by between €106 and €118 per year, depending on whether they have a contract on the free market or the regulated PVPC tariff.
PVPC stands for Precio Voluntario para el Pequeño Consumidor (Voluntary Price for the Small Consumer), which is Spain’s regulated electricity tariff for households and small customers. It is a government-controlled price structure that can be chosen as an alternative to the free electricity market. In other words, it is a regulated electricity price determined by the Spanish government rather than by private electricity companies. The price varies every hour and follows OMIE (Operador del Mercado Ibérico de Energía, the Iberian Energy Market Operator). You must also be contracted with the state-authorized companies (Comercializadoras de Referencia). The largest ones are Endesa, Iberdrola, Naturgy, and Repsol.
