About changes in your electricity supply

Phil Markham, of Jimena Real Estate, sent this item he found online. There seems to be much confusion on the subject, which is not surprising as the electricity companies are none too clear. This item comes from a law office, details about which are at the bottom of the article. (JimenaPulse is not responsible for information contained therein.) Do I need to do anything? Contrary to an article that appeared in a local British paper your electricity bills will not increase by 20% if you fail to re-register with your existing electricity provider or sign a contract with a new one of your choice. Consumers who have contracted 10kw of power (factories, shops, businesses) have already been notified that they are obligated to move over to the free market and choose their preferred supplier as, in the future,>

their usage rate will not be set by the government and will fluctuate in relation to supply and demand, cost of oil etc.

Normal homes almost never have more than 10 kilowatts of power contracted; it is usually 3.3 kilowatts or 5.5 kilowatts. If low voltage consumers do not re-register with their existing supplier or choose a new supplier nothing will change. They will already have been passed over to the new electricity tariff called TUR, which is regulated by the government.

Can I change my supplier if I want to?

Previously in Spain the main distributors of electricity, such as Iberdrola, Endesa and HC Energía, were the only companies allowed sell electricity. As from July 1st, 2009, with the introduction of the “free market” there are many sellers/suppliers to choose from. As well as being distributors (owners of the cables, meters etc.) all those mentioned above have created commercial supply companies in order to compete for electricity sales. They have been joined by many other Spanish companies and eventually suppliers from all over the E.U. will be able to sell electricity here.

Here are some options:

•    Do nothing at all and remain with your original distributor – you will remain on the TUR tariff and the Spanish government will regulate the electricity rate charged.

•    Re-register with your original distributor meaning that you switch to their free market supplier company and pay a fluctuating rate, which could be higher or lower than the TUR tariff. Incentives, such as returning to two monthly billing, may be offered.

•    Sign a contract with a new distributor (there are 5 to choose from) and remain on the TUR tariff.

•    Sign a contract with one of the new supplier companies (currently 27 to choose from) and take your chance with the rate variations.

Martin Pickering
Customer Care Department
customercare@abaco-asesores.com