How to know if you're overpaying for electricity in Spain, without getting lost
The honest answer to "am I overpaying?" depends on how much you consume, where you live and which tariff you signed. The useful answer is to hand you seven signs — if any one of them shows up on your bill, there's a real chance you are.
All you need is a recent bill and five minutes. If none of the seven signs apply, your tariff is probably fine and there's nothing to do. If two or three show up, it's worth a closer look.
Sign 1: your €/kWh is clearly above the current free-market average
On your bill, find the energy term breakdown. You'll see a price per kWh for each time band (P1 peak, P2 mid, P3 off-peak).
The current ranges for new free-market fixed-price offers, taxes included, sit roughly here (June 2026 sample):
- P1 (peak): between €0.18 and €0.25 per kWh.
- P2 (mid): between €0.11 and €0.15 per kWh.
- P3 (off-peak): between €0.07 and €0.12 per kWh.
If your bill shows prices clearly above those (for example, off-peak at €0.18, mid at €0.20, or peak at €0.30), there's a strong chance you're on an old tariff that quietly renewed itself — the so-called tarifa de los abuelos ("grandparents' tariff") that turns up in inherited rental flats and contracts signed years ago. Same story if you're on a 24h flat-rate plan above €0.18/kWh.
It isn't illegal. It isn't a scam either. The contract simply rolled over and the price crept up through yearly revisions without anyone telling you head-on.
Sign 2: you pay more in fixed monthly charges than you do for the electricity you actually use
Take your bill. Add up the power term plus its associated taxes. Compare that with the energy term plus its associated taxes.
If, in a normal flat, you pay more for the fixed part (the cost of having power available) than for what you actually consume, your contracted power is oversized.
This is rampant in rentals. The previous landlord set 5.75 kW or 6.9 kW "just in case". The current tenant lives alone or as a couple, never runs five appliances at once, and is bleeding €30-40 a month in fixed costs they don't need. The regulated power charge in 2026 is €30.97 per kW per year in peak (P1), plus the retailer's margin on top. Trimming 2 kW off your contracted power can easily translate into €80-120 in savings a year.
Sign 3: there are line items with names like "Premium", "Protection", "Assistance" or "Maintenance"
Watch out here. These are usually add-on services sold by your retailer separately from the electricity itself. They're not mandatory. They aren't grid charges. They aren't taxes.
They typically cost €4-12 a month each. Stacked over a year, that's €50-150 per service. And most people don't actually use them because they don't remember signing up for them.
How to spot them: on your bill, scan every line. If the name doesn't contain "peaje", "cargo", "impuesto", "energía", "potencia" or "alquiler de equipos" (meter rental), and it sounds like marketing — it's almost certainly an add-on.
Sign 4: your tariff has time-of-use pricing but your life doesn't fit it
Residential tariffs with three bands (peak, mid, off-peak) are built to reward people who can push consumption to night and the weekend.
If you work from home all day, run the washing machine and dishwasher in the afternoon, cook on an induction hob at 2pm and run the air-con through July… time-of-use is hurting you. You're paying most of your consumption at peak rates.
For that profile, a flat 24h rate or PVPC with a routine tuned to the hourly price often makes more sense. The signal is simple: if your life is daytime and your tariff rewards night-time, there's a mismatch.
Sign 5: the last annual review put your price up and you didn't notice
Free-market retailers can revise your price once a year if the contract allows it. By law they have to give you at least one calendar month's notice before the increase applies (article 44.1.e of Law 24/2013, the Electricity Sector Act). The notice arrives by email. It usually has a bland subject line — "update to your conditions" — and gets buried.
If you scroll through the last twelve months of email and find one of those sitting unread, that's your proof. You're probably paying more now for the same consumption than you were a year ago, and you "agreed" to it by not reading.
It isn't your fault. It's a design that assumes you won't read the email. But knowing it is the first step to fixing it.
Sign 6: the wrong VAT rate is being applied
As of today, the VAT rate on residential electricity in Spain is 21% (the standard rate under Law 37/1992, the VAT Act). The Government applied temporary reductions to 10% and 5% during the 2021-2024 energy crisis, but those have ended and we're back at 21%.
If your bill is recent and applies a different rate to 21% without a new extension having been published in the Official State Gazette (BOE), it's likely a billing error and you have the right to claim.
Sign 7: you already pay more than €100 a month in a flat under 80 m², with no electric heating and no EV
This one is the most qualitative of the seven. It isn't a universal rule — consumption varies.
But: if you live in a small flat, no electric radiators, no old electric water tank, no EV, and you're still averaging more than €100 a month on electricity… something's misaligned. It might be one or several of the six signs above stacking up.
The right move isn't to assume. The right move is to grab your latest bill and check.
How to verify in five minutes
Three options, depending on how deep you want to go:
- The CNMC QR code. Your bill has a QR code in one corner. Scan it with your phone — it takes you to the Government's official comparator with your real consumption, and shows you what tariffs are available for your profile. No lies, no callbacks, no upselling.
- Your distribution company's portal. Download the CSV with your real consumption from the last twelve months and upload it to an independent simulator. More work, more precise.
- Send us your bill. We'll tell you in a minute and we won't call you afterwards. If your tariff is fine, we'll tell you that too. That's how we earn your visit next year.
Frequently asked questions
Can I tell whether I'm overpaying without downloading anything?
Yes. Open your bill, run through the seven signs. If none apply, your tariff is probably fine. If two or more apply, there's room to improve.
Which sign is the clearest?
Sign 1 (€/kWh well above the current free-market range) and Sign 3 (unsolicited add-on services) are the ones that usually move the most money.
What if I'm renting and I don't know whether I can switch?
If the electricity contract is in your name, you can switch without asking the landlord. If it's in the landlord's name, you'd need a change of contract holder first. We cover that in a separate guide.
Does "overpaying" always mean I have to change provider?
Not always. Sometimes adjusting contracted power down, or removing add-on services with your current retailer, is enough. Switching is one lever, not the only one.
What if I check and my tariff turns out to be fine?
Great — nothing to do. Check again in a year, specifically right after any "update to your conditions" notice you receive.
In short
Knowing whether you're overpaying for electricity in Spain doesn't require a master's degree in energy markets. It requires looking at your bill with the right questions in hand. If, after the seven signs, your bill is clean — there's nothing to do. If it isn't, you now know where to start.
And if you'd rather skip the manual review, Zorrito will read your bill for you. No callback afterwards.