From 1st July, the electric and domestic gas market will be deregulated in Spain.  This means that the consumer can pick and choose their own electricity provider.  At the moment the largest suppliers are Endesa, Iberdrola, Union Fenosa, E.ON and HC Energia.  Each company sets their own tariff for you to choose from, but as yet not all of these have not been announced.  Iberdrola are going down the ´green´ avenue and have said their supply is from renewable sources, whatever that means.  Since the free market doesn´t start until 1st July these companies cannot start to attract customers, but in reality some have enticed people to sign up to a contract that they will not be able to get out of easily if they then find a cheaper rate elsewhere.  In order to protect consumers the Spanish Government have created a base tariff called the Tarifa Ultimo Refugio (TUR), but as yet this rate has not been set, the Ministry of Industry "suggests" it will be similar to your current rate, but some consumer groups warn that it is possible it will be set slightly higher to make new tariffs look attractive.  Consumer associations suggest you do nothing until after 1st July as the exact prices and tariffs will not be published until after then.  By not doing anything yet just means you will stay with your current supplier, but you will not be tied to them indefinitely, once 1st July has passed your options are open.

If you have a supply of over 10Kw (normally only business users) you will be eligible for a "medium user" tariff, which will be negotiated differently with the supplier of your choice.  If you have your own transformer there is another rate for that.  Changing suppliers is going to be as easy as changing telephone companies or internet providers.  If you are a "familia numerosa", on a minimum pension or with no family members working, you will be entitled to a special subsidised tariff called the Bono Social.  If your home consumes under 3Kw you will automatically be entered into the Bono Social, if over you will still be eligible however, you will be able to request inclusion in this scheme.  So far the Government has not made public details of this scheme.

(The source of this information was Issue 6 of The READER.es newspaper)