Business Electricity Rates Explained: How to Understand Your Company’s Bill

Understanding your business electricity bill is essential for controlling costs and optimising energy use. In Spain, electricity costs can be complex due to multiple charges, tariffs, and technical terms. At Evergreen Eléctrica, we help businesses decode their invoices and make informed decisions to save money and improve efficiency.

In this guide, we explain business electricity rates, the difference between fixed and variable charges, contracted power, and practical strategies to manage your energy costs.

The Main Components of a Business Electricity Bill

Every business electricity bill in Spain includes several key components:

1. Contracted Power
   • This is a fixed monthly charge based on the maximum electrical capacity your business requires.
   • Your bill displays the contracted power in kilowatts (kW).
   • Paying for more power than needed leads to unnecessary costs, while too little may cause penalties or interruptions.
   • At Evergreen Eléctrica, we help businesses analyze real consumption data to find the optimal contracted power.
2. Energy Consumption (kWh Used)
   • This variable component is based on the total energy your business consumes.
   • Each kWh may have a different price depending on your contract type, supplier, and time-of-use tariffs.
   • Reducing consumption during peak hours and upgrading to energy-efficient equipment can significantly lower this cost.
3. Time-of-Use Rates
   • Many business plans in Spain use time-of-use pricing, dividing the day into:
     • Peak (Punta): 10 a.m.–2 p.m. & 6–10 p.m. (most expensive)
     • Mid-Peak (Llano): 8–10 a.m., 2–6 p.m., 10 p.m.–midnight (moderate)
     • Off-Peak (Valle): Midnight–8 a.m. and weekends (cheapest)
   • Scheduling high-consumption tasks during off-peak hours can save 15–20% on your electricity costs.
4. Taxes and Regulatory Fees
   • Bills include government taxes, network access fees, and regulatory charges.
   • While unavoidable, knowing them helps understand the total cost and plan budgets accurately.

Fixed vs. Variable Charges

Understanding fixed and variable charges is essential:

• Fixed charges:
  • Linked to contracted power, remain constant monthly.
  • Guarantee your business has sufficient electrical capacity.
• Variable charges:
  • Depend on kWh consumption and market prices if on an indexed tariff.
  • Encourage businesses to track usage and improve efficiency.

Balancing fixed and variable costs helps you forecast your energy budget and avoid surprises.

How to Read Your Business Electricity Bill

Follow these steps to understand your invoice:

1. Check contracted power – Confirm it matches actual needs.
2. Review energy consumption (kWh) – Compare to previous months.
3. Check time-of-use breakdowns – Identify peak-hour usage that can be shifted.
4. Examine fixed charges and taxes – Understand which costs are unavoidable.
5. Assess supplier fees or services – Extra management or sustainability fees affect your total price.

How We Help Businesses Understand Their Bills

At Evergreen Eléctrica, we go beyond providing electricity. We:

• Analyse invoices and explain line items in plain language
• Recommend optimised contracted power to reduce fixed costs
• Monitor consumption with smart tools
• Advise on peak vs off-peak usage for cost savings
• Guide companies on choosing between fixed and indexed tariffs

With our support, businesses gain full transparency over their energy costs and actionable insights to save money.

FAQs: Understanding Business Electricity Rates

• Q: What is contracted power (potencia contratada)?
  A: The maximum power your business requires, reflected as a fixed monthly cost.

• Q: How do fixed and variable charges differ?
  A: Fixed charges relate to contracted power; variable charges depend on energy consumption and market rates.

• Q: How can I reduce electricity costs?
  A: Adjust contracted power, shift usage to off-peak hours, use energy-efficient equipment, and review suppliers regularly.

• Q: Can Evergreen Eléctrica help me understand my bill?
  A: Yes! We provide detailed analysis, explain all charges, and suggest strategies to lower costs.

Keep Learning: Visit Our Blog!

Discover more insights on business electricity rates, energy efficiency, and supplier comparisons at our Blog — your partner for smart, sustainable business energy in Spain.