Until recently, the classic recommendation for an electricity rate in Spain did not have much of a mystery: PVPC. The regulated tariff was the best, none of the free market could beat it. But the situation has changed radically in recent months.
Wholesale market prices have skyrocketed and the PVPC, which is indexed to these prices, has also shot up. It is not uncommon to see days in which during the day we have prices of 0.3 euros / kWh or more, triple the price before these increases. Then, what should we do right now?
Leave the PVPC
There is no other, the best advice right now is to leave the PVPC. But of course we must not get carried away by any offer they make us, many are above the PVPC, even those that offer a fixed price: since we changed the best thing is to compare.
The two best offers on the market at the moment have a fixed price 24 hours a day: they are Repsol (long-term fixed rate) and Naturgy (commitment rate), with stable prices for 3 or 2 years respectively.
The details of which is the best rate depend on consumption, since the fixed and variable terms are different in both cases. Making comparisons is therefore complicated, but there are online comparators such as that of the CNMC or others private that help choose the best rate.
An important thing is to choose a fee without permanence, because the situation in which we find ourselves with high wholesale prices, although it could last for a good part of 2022, does not have to stay like this forever.
But without losing sight of the fact that prices could go down again
Therefore, although some rates are currently better than the PVPC, this should not always be the case. The normal thing is that at some point it returns to “normal” and PVPC becomes very competitive again.
Therefore it is also important to choose a rate that does not have permanence to be able to change back quickly when it is interesting. The two rates mentioned above do not have permanence, but you have to read the fine print
And let’s not forget that there may be a certain seasonality: prices may remain high in winter, drop in spring and summer and rise again in autumn: in the end, the wholesale price in Spain is determined by the price of gas and this, which is fired, It is consumed more when it is cold.
Source: El Blog Salmón by www.elblogsalmon.com.
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