How can I pay less on my electricity bill?
Among all the expenses that a household usually faces, the electricity bill is possibly one of the most important and costly. Because in recent years, and still today, the price of electricity has experienced an incessant increase, knowing how to reduce such expenditure is essential. If, as it surely must have happened, you have ever wondered how to pay less light, read on and discover the keys and the methodology to give your economy a break.
Tips and tricks to reduce your electricity bill
Although it seems complicated to pay less in the receipt of electricity, it is not impossible. Logically, you can never reach a ‘zero consumption’, but reduce the cost of your bill enough to have more capacity to save. These are the steps you must follow to achieve your goal:
- Check the contracted power: it is the first step and one of the main ones. On many occasions, either because it corresponded to a former tenant or because it has been directly established by the electricity company itself, we have more than we need. Always check the kW you need and do not hire more than you need.
- Appliances: they are the ones that consume the most energy and, therefore, those that most influence your receipt of light. Bet on those who respect the principle of energy efficiency and disconnect them, if possible, when you are going to spend several days away from home. So you can save up to 5%.
- The ‘stand by’, your worst enemy: do not disconnect the television when you do not use it and leave it in ‘stand by’ mode may seem harmless, but it is not. That simple detail involves a considerable additional cost that can be easily avoided. The same applies to other electronic devices and chargers. -Use natural light: it is a basic advice, but no less important. Whenever possible, make the most of natural lighting. And, of course, always turn off the light when you do not need it.
- Use LED bulbs: energy efficient lighting is one of the best investments. It is true that LED bulbs are more expensive than conventional bulbs, but the savings that will mean in the medium and long term makes them worthwhile.
- Compare rates: as with each type of product and service, comparing the options available in the market is essential. Depending on the contract you have signed, you will usually have to notify your company 15 or 20 days in advance to be able to change.
- Hourly rate: the hourly discrimination rate is an increasingly popular option. You usually have 12 to 14 hours in which electricity is cheaper, usually from ten o’clock at night. It is really useful if, for example, you have electric heating.
With BBVA Bconomy you can compare your expenses and create your financial cushion: find out now
Regulated market or free market?
Within all the aspects that you should value when reducing the price of your electric bill, there is, without doubt, the type of rate you choose. Consumers have the freedom to choose between two types: the regulated market or the free market. A decision that can directly influence the amount they pay. However, on many occasions, we do not even know which one is ours.
Both options have advantages and disadvantages, in addition to having the same access tolls -established by the Government- and the same taxes. The difference is, therefore, the price that costs to produce electricity. In the regulated market or PVPC (Voluntary Price for Small Consumers), the price is set by the Government based on the cost of energy in the so-called wholesale market, that is, the price of large companies.
Taking this into account, in the regulated market approximately 65% of the price is fixed and is associated with 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 rate, you will suffer the rise of the light, although you will also benefit when its price goes down.
On the contrary, in the free market, all the marketers participate, who directly decide the price and the conditions of the contracting. Your invoice will not change, as in the case of the PVPC, depending on the fluctuation of the electricity market, but you will pay the same every month.
The question is: what is the best option? The answer is relative, because it will depend on each consumer. Although the regulated market has traditionally been considered more profitable, it is impossible to categorize. The convenience of one or the other option depends on many circumstances and your type of consumption. Also, remember that in the regulated market increases are noted and in the free market the opposite occurs. The best solution, without a doubt, is that you compare what the market offers and decant for what favors you the most.
Saving is easier with BBVA
Your ability to save is conditioned to a large extent by what you pay for the receipt of electricity. Following the appropriate steps, as you see, can be reduced, although everything is easier with a good travel companion. BBVA wants to help you save with the new BBVA Bconomy functionality, which allows you to analyze and organize your expenses, including electricity.
Thanks to BBVA Bconomy, available in the BBVA app, you will have information about your money that you did not have before. You can analyze your financial situation with the comparison of your expenses with other profiles similar to yours, 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 you decide.