Understanding your electricity billWhat are you paying for? And where can you (maybe) save money
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Your electricity bill, as a general rule, consists of the following concepts:
- Consumption measured in KWh (Kilowatt hours). The distributor is responsible for reading your consumption.
- “Potencia” (Power), which in Spain is measured in KW. “Potencia” is independent of your usage, and is fully billed even if you have 0 consumption.
- Electricity tax. There is a charge of en electricity tax, which in normal times is 5,011% of the sum of your consumption and Potencia.
- Purchase administration fee. A fee for handling your power purchase. This amount is exempt from electricity tax.
- Rent of meter, re-invoiced from the distributor to you.
The meter rent is not subject to electricity tax, either IVA (VAT) which in normally charged at 21% of the sum of (consumption+potencia)*electricity tax+administrative contribution+rental of electricity meter. IVA is then also calculated with electricity tax included.
In addition, your bill contains a lot of data associated with your reading, just like at home
For example the measurement period, your historical consumption, the phone number you need to call in case of problems and an important piece of information: a long number, “CUPS”, which is the real identification of your meter and address, and especially your electricity supplier or distributor will often ask for this number if you contact them.