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Electricity bills explained to a post-adolescent

18 Septiembre 2017
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Standard electricity bills plainly explained in the simple language used by those that don’t want to grow old. Forget all the fuss and just focus on what is important: what you are paying for and why you are paying for it.

The empty nest syndrome is what parents feel when they notice their children have grown up and are about to fly off. They need to be spoken to like adults… but it’s not always easy.

For example: explaining electricity bills to them. First issue: Does anyone really understand them? They are easy to understand if you read this post and watch the video below.

Rather than talking like adults, we are going to talk clearly.

Let’s get to the point: the basic details

In the “Your bill details” section, you will see the first thing you need to know: the period for which you are being charged, when the bill was issued and when you will be charged for it.

It also includes a code identifying that specific bill (Bill no.) and another that identifies your electricity contract (Reference). If you need to carry out any transactions, it is advisable to keep this information to hand.

Although we recommend going digital and carrying out all your transactions via your Private Area. You simply have to register with endesaclientes (if you have already registered, access your Private Area with your username and password).

The following section you will come across is called “Bill summary”. This includes all the important things you are being charged for.

The video will explain this in 1 minute and 30 seconds

You haven’t understood anything? That is why we have created a video for you to share by WhatsApp with your parents, your children, your siblings or your neighbours.

Your electricity bill, explained plainly and simply.

Contracted power

This is the fixed term of your bill and it is measured in kW.

Look at it like a kind of fee you have to pay for connecting to the power grid. It will be the same every month, unless you decide to increase or decrease it.

The higher the contracted power, the more electrical appliances you will be able to have on at the same time… but you will pay more too. If you are left short, your fuse box will trip each time you switch on the washing machine and the oven, for example. Before considering a change of any sort, we recommend reading this post on the issue.

Most households have a contracted supply ranging between 3.3 and 4.6 kW of power. If you have more than 10 kW, you cannot subscribe to the regulated tariff (VPSC), only free market tariffs.

Do not decrease your power unless you are sure it will be sufficient for your household

Energy consumed

If the power is the “fixed fee”, this is the variable term. The more electricity you use, the more you pay. And what if you are not using any electricity as you are not at home? You won’t pay a thing… but remember, an empty house can still be using electricity (the refrigerator, devices on standby), unless you switch them off completely.

The electricity you use is measured in kWh. The will find full details in another section (“Electricity consumption information”), but we recommend checking it online. From you Private Area via endesaclientes, you can see how many kWh you are consuming during each hour of the day.

It is difficult to play with power, but you can do wonders with your energy consumption. For example, by signing up for a tariff that suits your routine.

Taxes and other expenses.

Power and consumption are important, but there are other expenses that must be paid every month:

  • Electricity tax: this is special tax, levied at 5.11% on your power and consumption. The State uses this to develop alternative energies.
  • Meter rental: the electricity meter is owned by the distribution company, which rents it to you for a small monthly fee (between 0.5 and 1.15 euros depending on your circumstances).
  • VAT: is 21% and it is applied to the entire bill. Hang on a minute: How can VAT be applied to something that already has a tax applied to it? The answer is that the VAT Law allows this in cases such as the special electricity tax.

Your electricity bill is made up of the fixed term (power), the variable term (consumption) and taxes

What is your tariff?

Most people don’t even know which tariff they have. It is essential, since the price of each kWh you consume depends on your tariff.

To find out your tariff, access the “Contract details” section. This will include a field entitled “Contracted product” if you are in the free market or “Type of contract” if you are in the regulated market.

After this field, you will see the name of your tariff (one of the thousands of tariffs in the free market or one of the regulated tariff categories – VPSC).

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