Understanding the electricity bill: what are we paying for?

The electricity bill provides us with very valuable information to improve our energy planning. Understanding the electricity bill and its components allows us to have greater control over our consumption. In this article we teach you to understand it and discover what we are paying for.

The basics of the electricity bill

Contracted power: It tells us the maximum kW of electricity that we can consume at a time.

Consumption for the period: is the amount of kWh consumed over a period of time. In free market contracts, the rate will be affected according to the fluctuation in the price of electricity.

Tolls and charges: the cost of distributing and transporting the electricity that is consumed.

Taxes: in the case of Spain, there are two taxes: the Electricity Tax and the VAT.

Reading the electricity bill: knowing our consumption habits

The bill is perfect for seeing what our consumption habits are. For an energy savings plan, consider:

• What rate type We have: fixed or free market.
• The actual monthly consumption and how much has been made in Peak hours.
• Las Consumer graphics that compare this month and the previous one.
• The difference between average consumption and Contracted power.

The best way to save on your electricity bill

It has been proven that the best way to save on your electricity bill is through self-consumption. With a installation of solar panels, you can Reduce your electricity bill by 70% every month. A savings that can reach 90% with the supplementation of a battery.