Neither alleged regulatory changes, abrupt termination of contracts, nor the need to opt for another modality can force you to choose the “best rate” offered by a company
If the choice of an electricity tariff is already complex, in such a volatile price environment and after the numerous legislative changes that have been made over the past year, it is only necessary for a company to take advantage of the misinformation from millions of customers with these vouchers to try attract them with their offers. Especially if they do it, as it has reportedly practiced, using “deceptive” tactics, as pointed out by the National Commission on Markets and Competition (CNMC) in imposing a €9.2 million fine on Audax.
While legislation has already eliminated cold door sales, i.e. the possibility of a commercial appearing near a home (without notice) to sell the benefits of their electricity, many companies have managed to trying to attract customers in the free market, or to get them out of the regulated market. Before accepting a siren song from an electric company, these are the instructions that the customer can follow to avoid fright in the future with his already high electricity bill.
What mode am I in?
It’s one of the big questions that users are asking themselves and that some companies are taking advantage of to sell an electricity tariff. There are two major electricity markets for household consumers in Spain: the regulated market, which includes about 10 million customers; and the free, with nearly 20 million users. To determine which mode you are in, you need to review your latest electricity bill and look at the concept of ‘contract type’. If the designation is PVPC (Small Consumer Voluntary Price), it is on the regulated market. Any other designation (‘pack’, ‘stability’, ’24h’, etc.) is part of the free market.
Can they force me to switch from one to the other?
No. Regardless of whether an electric company insists that you legally have to change your contract, this is not the case. In fact, it would be illegal to claim that reality to justify a contract change. Keep this warning in mind as your own electricity group may contact you to warn you of the need to move from the regulated market to the free market. They don’t even have to think about it that way, just with “an improvement in their current rate”, “an update of their modality” or “a discount they can’t resist”. The agency is in your hands, but never do it under the threat that you are legally compelled to change, because that is not the case. Also keep in mind that the transition from the regulated rate to the free rate (or vice versa) is always free.
What if they offer me an irresistible rate?
It’s the trick that companies play. The harsh reality that electricity prices have endured over the past year has made many households reconsider whether they are covered by the rate that is best for them. If you’re covered by the regulated market, any irresistible rate means you’re transitioning to free. That is, you will not be able to take advantage of the social bonus (the discount of up to 70% on the coupon for certain incomes, which will be extended to 80% in the Council of Ministers this Friday), although you will be kept informed of the daily price variation . If you are already on the free market, you can benefit from a different rate, provided that your contract and the relationship you have with your current electricity company allow this.
How do I know if what they are offering me is the best on the market?
Electricity prices are so volatile that several bills have to be created before you can take advantage of a particular rate, no matter how good it seems at first. First check how much they offer you to pay for consumption measured in euros/kwh. Currently, the best free market rates offer from 0.15 euros/kwh. Although they are getting closer to 0.20 euros/kwh. By way of comparison: in September, approximately EUR 0.28/kwh was paid on the regulated market. Although it has already fallen to 0.25 euros/kwh in October. If you opt for a free rate, please note that you must add the Iberian limit adjustment to the price of the promotion. That is, the fee that all consumers will pay for limiting the price of electricity in Spain and Portugal. The additional cost this last month amounts to approximately 0.18-0.20 euros/kwh, which must be added to the electricity rate.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
