Spain has become the European country with the steepest rise in electricity bills in 2025. While many European nations, including France, Italy, Portugal, and Germany, have managed to reduce household electricity costs, Spain has gone in the opposite direction. In August 2025 alone, Spanish households saw their electricity bills increase by 14.7% compared with August 2024, according to Eurostat. By contrast, bills dropped by 13.6% in France, 4.9% in Italy, 2.3% in Portugal, and 1.7% in Germany.

This sharp rise has raised concerns among families, businesses, and policymakers, as energy costs now weigh heavily on household budgets and the competitiveness of Spanish industries.

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Trends in electricity prices

Electricity prices in Spain have been climbing steadily for several years, especially after the global energy crisis triggered in 2022. In 2020, the average wholesale price of electricity was around 40 euros per megawatt hour (€/MWh). By 2025, the average price had surpassed 110 €/MWh, with a record high of 440 €/MWh in March 2025.

The sharp rises in Spain contrast with a general stabilization or reduction across much of Europe, where governments have intervened through subsidies, tax reductions, or support for renewables.

Why electricity is more expensive in Spain?

Several factors contribute to Spain’s high electricity costs:

• Tax increases: Since January 2025, VAT on electricity rose from 10% to the standard 21%, adding nearly a third of the total cost of household bills.
• System charges and peajes: Fixed fees cover infrastructure, historical debt, and renewable energy incentives, contributing another third of the final price.
• Dependence on fossil fuels: Spain relies heavily on natural gas and other fossil fuels. Under the “marginalist” pricing system, the most expensive energy source sets the market price for all electricity, meaning gas price spikes directly affect consumer bills.
• April 2025 blackout: After a nationwide blackout, authorities prioritized “safe” gas-based generation over cheaper renewables, increasing wholesale prices.
• Climate and demand: Hot summers drive air conditioning use, while low rainfall reduces hydroelectric output, forcing reliance on more costly thermal plants.
• Geopolitical pressures: Gas supply reductions in Europe following the war in Ukraine have forced Spain to replace cheaper contracts with costlier imports.

Impact on households and families

For Spanish families, electricity is now one of the three largest household expenses, accounting for around 3% of annual budgets. Rising bills are especially challenging for low-income households, increasing the risk of energy poverty, where families struggle to afford sufficient heating, cooling, or lighting.

Pressure on businesses and industries

High electricity prices hit industrial users particularly hard. Spanish electricity costs for large industrial consumers can be:

• 2.6 times higher than in France
• 1.5 times higher than in Germany

These differences threaten competitiveness, especially for energy-intensive sectors like steel, chemicals, and manufacturing. Higher costs may push companies to relocate production abroad or delay investment.

Government measures and proposed solutions

The Spanish government has taken partial steps to mitigate the rise:

• Subsidies for vulnerable households
• Temporary reductions in taxes
• Decrees to prevent blackouts

However, lack of parliamentary consensus has stalled more comprehensive reforms. Experts propose additional solutions:

• Reducing VAT on household electricity
• Revising electricity system charges and grid fees
• Expanding renewable energy capacity
• Improving grid efficiency and storage to lower reliance on gas

Did renewables cause the blackout?

Some people believe Spain’s April 2025 blackout happened because the country relies too much on renewable energy. Experts say the blackout was actually caused by a sudden imbalance between supply and demand, along with technical issues in power plants and the electricity grid. While renewable sources like wind and solar are variable, they only make up part of Spain’s energy mix. After the blackout, authorities relied more on expensive gas plants to stabilize the system, which increased electricity costs. Overall, experts emphasize that the blackout was mainly a grid management and demand issue, rather than a problem caused by renewable energy.

Comparing Spain with Europe

Eurostat data shows that while most EU countries have stabilized or reduced prices, Spain’s bills are increasing. Factors such as lower VAT in France and Portugal, more renewables in Germany, and targeted government support explain the divergence. Spain remains among the countries with the highest relative increase, only surpassed in 2025 by nations facing exceptional circumstances, like Romania or Austria.

What’s Next for Electricity Prices in Spain?

Short-term volatility is expected to continue. Over the medium term, experts suggest that increasing reliance on renewables and stabilizing global energy markets could moderate bills. Long-term relief will depend on:

• Balanced tax policies
• Investment in renewable infrastructure
• Political consensus on energy reform
• Supporting households while maintaining business competitiveness

Spain’s high electricity prices highlight a broader challenge: balancing energy security, affordability, and sustainability in an era of global energy instability.

Tips to save on electricity bills in Spain

Even with rising electricity costs, households can take steps to reduce their bills. Here are some practical tips for September in Spain:

1. Use air conditioning wisely
   • Set your AC to 25–26°C instead of cooler temperatures.
   • Use fans to circulate air and reduce the need for continuous cooling.
2. Take advantage of natural ventilation
   • Open windows early in the morning and late in the evening to cool your home naturally.
   • Close blinds or curtains during the hottest hours to keep heat out.
3. Check your electricity tariff
   • Some providers offer time-of-use rates. Shifting high-consumption activities (washing, ironing, dishwashing) to off-peak hours can save money.
4. Upgrade to energy-efficient lighting and appliances
   • Replace old bulbs with LEDs.
   • Use energy-efficient appliances when possible, especially for high-use devices like refrigerators or washing machines.
5. Unplug unused devices
   • Many electronics consume electricity even when off. Unplug chargers, TVs, and other devices when not in use.
6. Monitor your consumption
   • Track your monthly electricity usage to identify high-consumption periods or appliances.
   • Some smart meters allow real-time monitoring, helping you adjust usage.
7. Consider small renewable options
   • If possible, use solar water heaters or small solar panels to reduce dependency on the grid. Even partial self-consumption can lower bills.

Where to check electricity prices in Spain

For those who want to keep an eye on electricity prices in Spain, there are several reliable websites. The OMIE website, the official operator of the Iberian electricity market, provides detailed information on day-ahead and intraday electricity prices, including hourly data and historical trends (OMIE Day-Ahead Prices).

Red Eléctrica de España (REE), the national grid operator, offers real-time data on electricity demand, generation mix, and emissions (REE Real-Time Data).

For a broader European perspective, Electricity Maps shows real-time and historical data on electricity production, CO₂ emissions, and prices across Europe, including Spain (Electricity Maps – Spain).

Major providers like Iberdrola offer tools to check daily and hourly prices and optimize energy use (Iberdrola – Electricity Price Today).