maandag 15 juni 2015

Electricity charged by the hour from July By: thinkespaña , Saturday, June 6, 2015

ELECTRICITY for homes and small businesses will be charged by the hour from July 1, meaning peak and off-peak rates will apply to everyone and not just those who have applied for the so-called 'white tariff' where costs differ throughout the day and night.

All premises which have a digital, remotely-managed meter will automatically be switched to the hourly charge system, and the cost of each day's consumption will appear online from 20.15hrs for customers to check.

Where a digital meter has not yet been fitted, the electricity board, Iberdrola, has until October 1 to do so.

The hourly tariff will apply to all those with a power supply of less than 10kW.

It will allow customers to calculate more easily which appliances use up more energy and to what extent, because they will be able to compare online what they use each day and relate it to the white goods, lights, boilers, or other gagdets they have had in use.

This has come about after Spain's 'business police', the National Commission of Markets and Competition complained that the new meters, being rolled out across the country, did not allow customers to tell in real time how much electricity they were using unless they literally sat in front of them all day.

The price per kilowatt (kW) of power used per hour only affects 37% of the consumer's bill, whilst 25% relates to taxes including IVA, and the remaining 38% are standing charges.

New hourly tariffs can only be administered by commercial suppliers Iberdrola, Endesa, Gas Natural Fenosa, EDP España and E.ON España, but other utility companies are allowed to get on board provided they do so before the end of this year.

The system will replace the quarterly 'energy auctions' which would affect rates for three months at a time and which have led to Spain's electricity being among the four most expensive in Europe.
Axing the quarterly auctions is hoped to bring it down to much more affordable levels.

Already, Iberdrola offers a fixed monthly payment scheme whereby the average cost over the previous year is calculated, so that each month the consumer pays the same and does not suffer unpleasant surprises when the bill arrives.

At the end of the year, the total deficit or surplus is worked out and either added onto or deducted from monthly payments over the following year as a flat rate.

Hasta Pronto,
Francis Scheirs, Owner El Premio.
Mail me at francis@elpremio.es

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