It seems like every year the dramatic increase in the cost of electricity in Spain makes news headlines and 2021 is no exception.

Back in October 2018 we wrote that the month of September ended with the cost of electricity 45% higher than September 2017, putting the cost of electricity at the highest it has been since 1998. However, right in the middle of the cold spell last month, prices rose steeply again to reach the second highest level recorded in history. Unfortunately, many of us will see these increases reflected in February’s bill. The reasons for last month’s dramatic cost increase are similar to those for previous increases.

The contribution from cheap Renewable Energy has increased to help reduce the reliance on more expensive fossil fuels, in turn lowering the costs of providing energy in Spain. However, during last month’s spell of bad weather from the storm ‘Filomena’, less energy was produced from solar and wind, so not enough Renewable Energy could be generated to cover demand, which in turn increased due to the low temperatures.

Once again, the cost of gas increased this year and CO² emission penalties charged to the energy companies are being passed on to the consumer as part of the total energy costs.

At the time of writing, with record temperatures as low as -25°C registered in parts of Spain, the government spokesperson, María Jesus Montero, stated that a reduction in the current IVA level of 21% is not being considered and blamed Brussels for not being able to apply any tax discounts. However, as many other countries within the European Union have lower rates of tax for electricity, this statement was called into question. Indeed, the EU confirmed that member states are completely free to apply a reduced sales tax rate (IVA) to the cost of electricity. It seems though that the government is not going to be taking any steps to help offset the increased electricity bills by cutting taxes at the present time.

If you are concerned about the latest cost increases and want to take steps to reduce your electricity bills and reliance on fossil fuels, these are some steps you can take:
Check the deals and plans offered by your electricity supplier to make sure you have the most suitable and cost-effective one to suit you.
There are different energy suppliers so you can shop around to find the one that offers the best plan for your needs.
Use electricity efficiently by switching garden lighting to solar and using L.E.D or low-consumption bulbs inside the house.
Switch off appliances rather than leaving them on stand-by etc.
Use Renewable Energy such as biomass stoves for heating your home
Make use of Solar Energy to generate electricity for your home and/or heat your water.

For more information on Renewable Energy and how it can help improve your life, contact Free-Sol Solar at or visit our webpage at