Smart Meters and the New Facturation as of 1st October 2015

As of the 1st of October 2015 the digital and tele-operated ´smart´ meters will be used to registrate hourly fluctuations in the price of consumed electricity and this will be reflected on your electricity bill. Almost 11 million households will be affected by this new regulation. By the end of last year 14 million digital meters were installed, but not all of them are tele-operated. Electricity suppliers have until the 1st of October to adopt the new system.

By the end of December 2018 all traditional meters are supposed to have been switched for the new digital ones.

More into on smart meters on THIS TOPIC from our website.

The prices for each day will be published on the website of Red Electrica Española, as of 20.15 hrs the day before. THIS is the link to the daily update. There are various Apps available as well, that can help you anticipate the fluctuations. Or have a look on the Endesa website.

All those with a tele-operated digital meter and on a contract with the PVPC (Precio Voluntario al Pequeño Consumidor – what used to be the TUR tariff) tariff will be affected by this change. Those on a contract that offers a fixed price for a whole year, are not.

Practically all electricity companies can offer an hour-to-hour billing system, but the system as regulated by the state can only be offered by ´commercializadores de referencia´ amongst which are Endesa, Iberdrola, Gas Natural Fenosa, EDP España y E.ON España. With the new regulation in force, more companies can join if they meet certain requisites.

Will this new facturation result in lower electricity bills?

Well, that depends on your consumption habits and whether you can arrange to have energy-slurping appliances operate during ´low cost´ hours, basically corresponding with the hours that used to have the cheaper part of the night/day tariff, which will become obsolete with the new regulation in place.

It may sound frivolous, but it will also depend on how the wind blows… on days with more wind the greater production of windenergy will likely cause the prices to drop.

Also, only about 37% of your electricity bill is based on actual consumption, the rest is made up of taxes and fixed rates for the contracted power etc.

For those on ´Bono Social´ – that will continue, they will receive a discount of 25% on the hourly rates.

Consumer organisations have denounced this new regulation as it has been negotiated exclusively with the electricity companies, without any involvement of organisations that represent the consumers. They also fear the bills will be very complicated to read.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.