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New year implies regulatory changes in electricity rates, in 2025 the increase, I think it will be noticed more than ever, converges high wholesale energy prices and increases in Tolls and charges between 20 and 25%.

On the sunny Canary Islands, saving energy is not only a smart choice for your pocket, but also a significant contribution to the environment. In this post, we explain how the electricity market works and give you the keys to understanding it clearly, thus helping you save on your electricity bill.

How the Electricity Market Works in the Canary Islands

The electricity market in the Canary Islands works in a similar way to the rest of Spain, but with some particularities due to its island status. Understanding how it works is essential to optimise your consumption and reduce costs.

1. Energy Generation: Energy in the Canary Islands is generated mainly from renewable sources such as wind and solar, as well as conventional generation plants.
2. Distribution and Marketing: The energy generated is distributed through networks until it reaches your home. The marketing companies are in charge of selling you the energy, and they are the ones who offer you different rates.
3. Rates and Billing: Rates can be fixed or indexed. Fixed rates maintain a constant price, while indexed rates vary depending on the market. The CNMC has highlighted the importance of transparency in billing to avoid unpleasant surprises.

Energy Saving: Practical Tips

To maximize energy savings in the Canary Islands and reduce your electricity bill, we offer you some practical tips:
1. Installing Solar Panels: Take advantage of the Canary Islands' abundant sunshine by installing solar panels in your home. Not only does this reduce your dependence on the electricity grid, but it can also allow you to generate surplus energy.
2. Storage Systems: Consider installing real batteries to store solar energy generated during the day and use it at night. Avoid confusion with terms such as “virtual battery”, which according to the CNMC, can be misleading.
3. Consumption Optimization: Use efficient appliances and optimize energy use. For example, take advantage of the hours of lowest cost according to your electricity rate to carry out high-consumption tasks.
The CNMC wants to put an end to the term "virtual battery" used by marketers

Let's Get Things Straight: Demystifying Energy Savings

It is key to keep things clear to understand and effectively manage your energy consumption:
1. Avoid Confusion: Don't be fooled by complicated or poorly explained terms. For example, "virtual batteries" do not store energy, but rather an economic value that can be compensated at the end of the month.
2. Consult Reliable Sources: Always look for information from reliable sources and regulators such as the CNMC, which promotes transparent practices in the electricity market.

Frequently Asked Questions (FAQ)

What is a virtual battery and why should I care if I have solar panels?

A virtual battery is a term used by some retailers to describe a system that allows you to store an economic value equivalent to the excess energy produced by your solar panels, instead of storing real energy. The CNMC recommends avoiding this term due to its potential to confuse consumers. It is important to read the conditions of the products offered by your retailer carefully and understand that no physical energy is being stored.

How can I ensure that my electricity bill is transparent and understandable?

To ensure clarity on your electricity bill, especially if you have an indexed tariff or use surplus solar energy, make sure your supplier provides detailed and explicit information. This includes breaking down the components of your tariff, clarifying the limits on compensation for surplus energy, and clearly reflecting market-indexed prices.

What is the difference between a real drum and a virtual drum?

A real battery physically stores the energy generated by your solar panels, allowing you to use it when you need it, such as at night. A virtual battery, on the other hand, does not store physical energy; instead, it accumulates an economic value representing the excess energy generated, which you can use to reduce your future electricity bill.

Is it profitable to install solar panels in the Canary Islands?

Yes, the Canary Islands offer excellent conditions for installing solar panels due to their high rate of solar irradiation throughout the year. With solar panels, you can generate your own energy, reduce your dependence on the electricity grid and significantly reduce your electricity bill.

What should I know about indexed rate contracts?

Indexed tariffs vary in price according to the values of the electricity market. The CNMC has identified a lack of transparency in the presentation of these rates by some suppliers. Make sure that your bill clearly shows how the price is calculated and what components can affect your final cost.

Start saving on your electricity bill today! At D'paz Consulting, we are committed to helping you achieve significant energy savings and make the Canary Islands a more sustainable place.

Do you want to know how much you can save?

Fill out our form and receive a detailed analysis of your energy saving potential. Our team of experts will assess your situation and offer you customized solutions that fit your needs.

Request your free analysis now!

By submitting this form, one of our specialists will contact you to offer you a complete and personalized assessment. Don't miss the opportunity to reduce your electricity bill and contribute to caring for the environment in the Canary Islands!

Conclusion

Saving on your electricity bill in the Canary Islands is possible with a good understanding of the electricity market and the implementation of energy efficiency measures. Keep things clear, be well informed and make smart decisions to maximize your energy savings.
If you want us to help you optimize your consumption and install efficient energy solutions, contact us today and start enjoying significant savings on your electricity bill. The Canary Islands sun can be your best ally!

In this article, we analyze the current situation of the energy market, highlighting recent trends in electricity and gas prices, as well as recommendations to optimize customer rates.

Index

• Introduction
• Analysis of the electricity market
• Gas Market Analysis
• Recommendations
• Frequently Asked Questions
• Conclusion

Introduction

During the months of March and April, the closure of fixed prices for electricity and gas was recommended due to a forecast increase in the markets. The current situation confirms this increase, but informed decisions can still be made to minimise the risk.

Analysis of the electricity market

The rise in electricity prices is due to:

• Low energy demand due to a mild winter.
• Significant increase in renewable energy.
• Increase in energy demand with the arrival of heat and the decline in wind generation.

Demand is expected to increase during the summer, leading to higher wholesale prices and, consequently, higher fixed-price offers.

Gas Market Analysis

In the case of gas:

• Prices are on the rise.
• The completion of Tour 4 of gas for communities will lead to the return of contracts to the free market.
• Europe's announcement on cutting Russian gas has sent current and future prices soaring.
  It is important to consider that the marginalist system sets the price according to the most expensive technology in the generation mix.

Recommendations

• It maintains an excellent price-commission ratio with an extra 10% bonus.
• They allow you to close prices on a quarterly basis, offering flexibility and peace of mind.
• Invoice based on the customer's actual consumption curve and a high cost of adjustment services not passed on in real time is expected.
•  

Frequently Asked Questions

Why is it important to lock in fixed prices ? Locking in fixed prices allows you to secure rates before market increases make offers less attractive.

What are the advantages of indexed prices? Some trading companies allow you to close quarterly contracts without a commitment. This allows you to benefit from possible market drops without committing to the same price for 12 months.

What are the advantages/disadvantages of an indexed price?

• A fixed price for the kWh consumed guarantees us the same price for 12 months.
• In an indexed price, we will pay the real price of energy. In a bear market, this will quickly be reflected in our bills; the same goes for a bull market.
• Most of these contracts do not have a permanence period, so in the event of an unstable medium/long-term market, they allow customers to change their rate or change their supplier.

Conclusion

In summary, the current situation of the energy market presents challenges and opportunities. It is crucial to be well informed in order to make decisions that optimize rates and minimize risks. Whether by closing fixed prices, opting for flexible indexes or selecting rates that adjust to actual consumption, there are options that can be adapted to each customer profile.

Frequently Asked Questions (FAQ)

1. Why is it important to lock in fixed prices?
   Locking in fixed prices allows you to secure rates before market increases make offers less attractive. This provides stability and predictability in bills, especially in volatile markets.
2. What are the advantages of indexed pricing?
   Indexed pricing allows you to benefit from possible market declines without committing to the same price for long periods. In addition, some traders offer quarterly contracts with no permanence, providing flexibility.
3. What are the advantages and disadvantages of an indexed price?
   1.Advantages: In a bear market, lower prices will be quickly reflected in invoices.
   2.Disadvantages: In a rising market, price increases will also be quickly reflected in bills. The lack of permanence in some contracts allows you to change tariff or supplier in case of medium/long term instability.
4. What benefits do quarterly price lock contracts offer?
   These contracts provide flexibility and peace of mind, allowing for short-term rate adjustments and avoiding lengthy commitments that can be disadvantageous in changing markets.
5. How does the most expensive technology in the generation mix affect the price of energy?
   In marginalist systems, the most expensive technology in the generation mix determines the price of energy. This can lead to significant fluctuations in costs depending on the technology used, affecting bills if indexed contracts are chosen that reflect real-time market prices.
   

Contact us!

If you have any questions or need personalized advice to choose the best option for your energy consumption, do not hesitate to contact us. Our team of experts is here to help you make the best decision and ensure you get the best possible rate. Fill out our contact form here and we will get back to you as soon as possible.
We are here to help you navigate the complex world of the energy market with confidence and peace of mind!
Thank you for reading this article. We hope that we have provided you with valuable and useful information. See you soon!

Once again, you receive your electricity bill and you don't know how to interpret all the concepts that appear on it. Here are the definitive guidelines so that this doesn't happen to you again with the next bill.

Do you find it confusing to understand your electricity bill? With this guide we will explain each of the sections that make up your electricity bill and why you pay those amounts.
To begin we have to know that the following two amounts will always appear:

• Contracted power: this fixed cost is determined by the electrical power we have contracted, regardless of our consumption.
• Electricity consumption: this variable expense is the result of the electricity we have consumed during a specific period.

Well, now we have a clear idea of the two amounts that will always appear on our bill, now we are going to look at other important aspects that influence the amount of the electricity bill:

• Electricity Tax: a special tax will be added to the two amounts we saw above, which is approximately 4.86%.
• Equipment rental: unless it is owned by the client, there will also be a periodic cost for renting the meter.
• VAT: 21% is applied to electricity prices.

Once we have seen the sections that influence the amount of the bill, we now take a look at the type of rate you have contracted, which can be:

• Normal rate: you pay the same price per kWh 24 hours a day, all year round.
• Night rate: also known as time-of-day rate, which is the rate negotiated with the marketing company for different prices depending on the time of day.
• Now it's time to talk about the structure of the electricity bill, which has several sections:
• Header: data from the electricity company and data from the invoice that is issued.
• Customer information : customer details, delivery address, bank and invoice charge date.
• Invoice amount: this section details all the amounts seen above, the result of the sum is the total to be paid.
• Contact channels: email, telephone numbers for queries or breakdowns, schedules, website, etc.
• Electricity consumption information: reflects the history of electricity consumption through a graph throughout the year.
• Contract data: which shows the type of contract, the contracted rate, type of meter and other services, CUPS number and more information about our contract.
• Destination of the bill amount: graph that reflects the percentages of how our electricity consumption has been distributed.
• Other information: information of interest on the electricity market, alternatives and information on the social bonus for vulnerable consumers.

Please note that not all invoices are the same in structure but they are in data, so the positions of these concepts may vary in each one of them.

The Tinsa IMIE Local Markets index shows a year-on-year increase of 2.8% in the price of housing in the province of Santa Cruz de Tenerife. Data from appraisals carried out by Tinsa during the quarter place the average price in the region at 1,312 euros/m². The figure represents a cumulative fall of 24.4% compared to the historical maximum reached in the province.
The evolution during 2020 is negative. The average price in the province of Santa Cruz de Tenerife in the third quarter of 2020 is 0.8% lower than that recorded in this area in the same period of the previous year. In 2019, the accumulated evolution for these same dates reflected an increase of 1.9% in the province.
In order to analyse the current price level of housing compared to what it was in 2001, Tinsa has generated an index with a base of 1,000 points in 2001. With respect to this reference, the price of housing in the province of Santa Cruz de Tenerife in the third quarter of 2020 stands at 1,222 points.

Third quarter 2020

Year-on-year var.
National average 0.4%
Canary Islands 0.4%

Summary Santa Cruz de Tenerife, province

Year-on-year change 2.8%
Difference from maximums 24.4%
Var. Acum. Q3 2020 *0.8%
Var. Acum. Q3 2019 *1.9%
Average time to sale 0 months
Average price 1,312 €/m²