Question Energy

In Spain, when contracting electricity for your home or business, there are two main options: the regulated market and the free market. Although both offer electricity supply, their characteristics, conditions and prices vary significantly .

At Nordy, we know that knowing the differences between them can help you make a more informed decision that suits your consumption needs.

What is the regulated electricity market?

The regulated electricity market, also known as PVPC (Voluntary Price for Small Consumers), is a modality in which prices are set by the Government and change every hour, according to the supply and demand of the wholesale market. It can only be contracted by consumers with a power equal to or less than 10 kW and through the Reference Suppliers authorized by the State.

Characteristics of the regulated electricity market

Variable hourly prices: the cost of electricity varies every day and every hour, which means that the price you pay depends on the time of consumption.
Suitable for vulnerable consumers: this market allows access to the bono social eléctrico, a discount for households that need it.
Price transparency: the amount you pay is directly linked to the wholesale market, with no added commercial margins.

What is the free electricity market?

In the free market, companies set their own prices and conditions. This means that you can find fixed tariffs, with hourly discrimination, or even customized packages with additional services. Currently, the majority of consumers in Spain are covered by this modality.

Advantages of the free market

Price stability: many tariffs offer a fixed price for 12 months, which protects the consumer from increases in the wholesale market.
Complementary services: some companies include maintenance, technical assistance or additional discounts.
Wide offer and competition: there is a large number of suppliers, which makes it possible to compare and choose the most convenient offer.

Differences between the regulated and free market

Price and billing

One of the main differences is the way the price is calculated. In the regulated electricity market, the price varies every hour, so it is billed according to consumption and the price at that moment. On the other hand, in the free market, the rates can be stable, by hourly time slots or adapted to the consumer's habits.

Retailers:

Regulated market: it can only be contracted with the Reference Suppliers designated by the Government.
Free market: it can be contracted with any authorized supplier, such as Nordy.

Contracts and conditions

In the free market, contracts usually have a duration of 12 months and, in many cases, include permanence clauses. At Nordy, however, all our tariffs are 100% free of permanence: you decide when to stay and when to change without penalties or commitments.

Unlike many other providers, we believe in the freedom of our customers. That's why you can enjoy our services with no strings attached, with the peace of mind of knowing that there is no fine print.

In the regulated market, there is no commitment of permanence or penalties for changing supplier.

Access to the social bonus

The bono social is only available in the regulated electricity market, and is a key aid for vulnerable consumers. This discount can reach up to 50% depending on the level of vulnerability.

So, in conclusion, which type of electricity market is the most suitable for you?

There is no one-size-fits-all option: it depends on several factors, such as your consumption profile, your habits and your preferences.

If your situation and type of consumption allows you to access the regulated market, it may be an alternative to consider, especially if you are entitled to the bono social.
If your consumption is flexible and you can adapt to the most economical hours, both the regulated market and free market suppliers -such as Nordy- can help you manage your energy efficiently.
If you prefer price stability and greater predictability in your bill, a fixed price tariff with a free market supplier (like the ones we offer at Nordy) may be your best option.

In addition, those who are entitled to the social bonus must join the regulated market to benefit from this discount.

The regulated market offers indexed prices, access to the social bonus and can be interesting for vulnerable or very flexible consumers.
The free market, on the other hand, offers customization, stable prices and conditions more adapted to different lifestyles. At Nordy, moreover, there is no permanence and total transparency.

Before choosing, analyze your consumption profile, compare options and make sure you understand the conditions of each tariff.

Do you have any doubts? Contact us, we are here to help you!