Electricity Contracts for Your Spanish Second Home

The Two Layers of the Spanish Electricity System

Understanding why your Spanish electricity bill looks different from your home country bill starts with understanding the structure:

Distribución (distribution): the company that owns and maintains the physical cables, meters, and transformers delivering electricity to your building. In Mallorca, this is Endesa Distribución (part of Endesa, now majority owned by Enel). You cannot choose your distributor — it is assigned by geography.

Comercialización (supply/commercialisation): the company that sells you the electricity. You can choose this freely from a range of regulated or free-market suppliers. Common options in Spain include Endesa, Iberdrola, Naturgy (formerly Gas Natural Fenosa), Repsol Electricidad, Holaluz, Plenitude, and many others.

When you set up an electricity contract, you are dealing with the comercializadora (supplier). The distributor remains in the background, and switching suppliers does not require any physical change to your meter or connection.

Setting Up a Contract for the First Time

If you have just purchased a property or are contracting electricity in your name for the first time:

1. Obtain the CUPS code — the Código Universal del Punto de Suministro, a 20–22 character code that uniquely identifies your electricity supply point. Find this on a previous electricity bill, or ask the distributor (Endesa in Mallorca) or your gestoría
2. Choose a supplier and contact them (online or by phone) to set up a new supply contract
3. Provide documentation: NIE number, Spanish bank account IBAN for direct debit, passport or DNI, CUPS code, and the property's catastral reference
4. Cédula de habitabilidad: some suppliers require a valid cédula before activating a supply — particularly if the property has been empty for a long period (see our separate guide)
5. Select the contracted power (potencia contratada): the maximum load in kW you require. For a standard holiday property, 3.3–5.5 kW is typically sufficient; larger villas or those with electric vehicle chargers or pool heating may need 5.5–11 kW

New contract activation typically takes three to ten working days if the meter and connection are already in place.

Regulated Tariff (PVPC) vs. Free Market Tariff

Spain has two main tariff types:

PVPC — Precio Voluntario para el Pequeño Consumidor (Regulated Tariff)

The PVPC is the regulated "last resort" tariff set by the Spanish government and updated hourly based on wholesale electricity market prices. It is available to consumers with contracted power up to 10 kW.

• Prices fluctuate daily and hourly — your bill varies with market conditions
• Currently only available through the major regulated suppliers (Endesa, Iberdrola, Naturgy — through their regulated supply arms)
• Simplest to set up; no contract term
• In periods of high wholesale prices, PVPC can be expensive; in periods of low prices, it is often the cheapest option

Free Market Tariffs (Mercado Libre)

The majority of Spanish electricity contracts are in the free market. Suppliers offer:

• Fixed price tariffs: locked for a period (typically 12 months)
• Variable price tariffs: follow wholesale prices but with different pricing mechanisms to PVPC
• Time-of-use tariffs (tarifas con discriminación horaria): cheaper at off-peak hours (useful if you have electric hot water or heating you can schedule)

For a second home that is used only occasionally, the PVPC or a simple free-market fixed tariff is typically the most practical choice. The complexity of optimising time-of-use tariffs is rarely worthwhile for low annual consumption.

Understanding Your Electricity Bill

Spanish electricity bills have two main components:

Non-Resident Considerations

As a non-resident, you can hold a Spanish electricity contract in your name without being a Spanish tax resident. Key points:

• The contract must be in the property owner's name (not a tenant's, unless you are letting and have agreed otherwise)
• Direct debit payment requires a Spanish bank account (see our guide on opening a Spanish bank account)
• Many suppliers now allow you to manage your account online in English, or by phone with English-speaking customer service
• If you use a property manager, they can manage the electricity contract setup and annual maintenance on your behalf

Main Suppliers in Mallorca

All major Spanish electricity suppliers operate in Mallorca. The three largest with strong Mallorca presence are:

• Endesa — the historic dominant supplier in the Balearics, with a large local customer base and good Mallorcan customer service infrastructure
• Iberdrola — operates nationally; competitive free-market tariffs
• Naturgy — also national; gas and electricity combined tariffs not relevant in most of Mallorca (LPG gas is common for cooking; mains gas is limited)

Comparison websites such as Facua (consumer rights) or official comparison tools at the CNMC (energy regulator) website let you compare current tariffs.