Electricity prices on the Costa Blanca: higher costs, smart saving tips

VAT increase and tariff choice influence household budgets

Those living on the Costa Blanca must prepare for higher electricity costs in 2025. Since 1 January, VAT on electricity has risen from 10% back to 21%, which has a significant impact on household bills. In times of rising energy costs, it is more important than ever to compare tariffs carefully and follow smart saving tips.

How are electricity prices developing?
The average electricity price in Spain is currently 96.44 EUR/MWh – a figure that can vary greatly depending on the provider and contract model. While major electricity suppliers such as Iberdrola, Endesa and Naturgy continue to dominate the market, alternative providers and dynamic tariffs are increasingly offering potential savings for households.

Save money by choosing the right tariff
According to an analysis by Spanish consumer organisation OCU, many households pay up to 30% more than necessary because they do not regularly check or switch their electricity tariff. Particularly in the regulated market, which is linked to fluctuating electricity prices, it can be worthwhile switching to the free market with more stable tariffs.

Comparison websites such as OCU provide an overview of the most affordable rates: https://www.ocu.org/vivienda-y-energia/gas-luz/informe/tarifas-electricas-baratas

Tips for reductionthe electricity costs
▶ Compare tariffs: The electricity market in Spain is dynamic – it can be worthwhile to compare tariffs regularly and switch providers.
▶ Use time-based tariffs: Many providers offer low tariffs during off-peak hours – ideal for households that can flexibly adjust their electricity consumption.
▶ Conscious consumption: Air conditioning systems, heating systems and electric water heaters are among the biggest energy guzzlers. Targeted use can significantly reduce monthly costs.
▶ Energy-saving appliances: Investing in modern, energy-efficient household appliances will pay off in the long term through lower electricity bills.

Cushioning cost increases through smart decisions
The return to higher VAT makes electricity more expensive – but by choosing the right tariff and using energy more consciously, the additional costs can be partially offset.

Consumers should regularly review their options and not be afraid to switch providers if a better offer comes along.