How can I spend less on my electricity bill

Know the best tricks and advice for reducing the cost of your electricity bill
Among all the expenses which a household usually faces, the electricity bill is possibly one of the most important and costly. Due to the fact that in recent years, and still today, the price of electricity has experienced a continuous increase, knowing how to reduce this expense is essential. If, as is probably the case, you have ever wondered how you can spend less on electricity, keep reading and find out the key and the methodology to give your finances a break.
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Tricks and tips for reducing your electricity bill

Although it may seem difficult to pay less on your electricity bill, it is far from impossible. Logically, you will never be able to reach ‘zero consumption’, but you can reduce the cost of your bill enough so as to have a greater saving capacity. These are the steps you should follow to achieve your goal:

  • Check the contracted capacity: this is the first step and one of the main ones. Often, whether because it corresponded to a former tenant or because the energy company established it directly, we have more than we need. Always check the kW that you need and don't sign up for more than you require.
  • Your household appliances: this is what consumes the most energy and, therefore, what influences your electricity bill the most. Opt for those that are energy efficient and disconnect them, if possible, when you go to spend several days out of the house. This way, you will be able to save up to 5%.
  • ‘Stand by’ mode, your worst enemy: not disconnecting the television when you're not using it and leaving it on ‘stand by’ may seem harmless, but it is not. This simple detail represents a considerable extra cost that can easily be avoided. This also applies to other electronic devices and to chargers. - Make the most of natural light: it is a basic piece of advice, but no less important for it. Whenever possible, make the very most of natural lighting. And, of course, always switch off the light when you don't need it.
  • Use LED light bulbs: low-energy lighting is one of the best investments. It is true that LED light bulbs are more expensive than conventional ones, but the saving they will provide you in the medium and long term is worth it.
  • Compare tariffs: as is the case with every kind of product and service, comparing the options available on the market is essential. Depending on the contract you have signed, you will normally have to inform your company some 15 or 20 days in advance in order to switch.
  • Hourly tariff: the hourly tariff is an increasingly popular option. You usually have between 12 and 14 hours in which the electricity is cheaper, generally starting from ten o'clock at night. It is really useful if, for example, you have electric heating.

Regulated market or free market?

One of the many aspects to take into account when trying to lower the cost of your electricity bill is the type of tariff you choose. Consumers have the freedom to choose between two types: the regulated market or the free market. This is a decision that can directly influence the amount they pay. However, often we don't even know which tariff we are on ourselves.

Both options have advantages and disadvantages, as well as having the same access charges - which are established by the Government - and the same taxes. The difference, therefore, is in the price it costs to produce electricity. In the regulated market, also known as the PVPC (Voluntary Price for the Small Consumer), the price is fixed by the Government according to the cost of energy in the so-called wholesale market, that is, the market for big corporations.

Taking this into account, in the regulated market approximately 65% of the price is fixed and is linked to the access tolls and taxes, while the remaining 35% will depend on the fluctuation of the electricity market. This means that only if you have this tariff will you suffer the increase in the cost of energy, although you will also benefit when its price falls.

On the other hand, the free market involves all trading companies, and it is they that directly determine the price and the conditions in which energy is bought. Your bill will not vary, like in the case of the PVPC, depending on the fluctuation of the electricity market, rather you will pay the same rate each month.

The question is: which is the better choice? The answer is relative, as it will depend on every consumer. Although the regulated market has traditionally been considered cheaper, it is impossible to rank them. The suitability of one option or the other depends on many circumstances and on your type of consumption. Moreover, remember that in the regulated market you will feel any price rises, while in the free market the opposite applies. The best solution, without a doubt, is to compare what the market offers and to opt for whatever favors you the most.

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Saving is easier with BBVA

Your saving capacity depends largely on what you pay for your electricity bill. By following the right steps, as you can see, it can be reduced, although everything is easier with a good travel partner. BBVA wants to help you save with the new BBVA Bconomy feature, which allows you to analyze and organize your expenses, including your electricity bills.

Thanks to BBVA Bconomy, available in the BBVA app, you will have the information about your finances that you were always missing. You will be able to analyze your financial situation, comparing your spending with other profiles similar to yours, in order to know where you can save. Join the BBVA team and get the most out of your money. Because the more you know, the better your decisions.

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