After you move to Madrid and sign a lease, you must set up your utilities. This guide explains how electric, water, and gas bills work in Spain, and how to transfer them to your name.
Who pays for utility bills?
In Spain, utility bills are called gastos de suministros. The tenant is responsible for paying all consumption costs. These costs include electricity (luz), water (agua), and gas (gas).
You must pay these bills directly to the utility companies. Ensure your lease contract clearly states that you only pay for your consumption. Building community fees are separate and are paid by the landlord.
Changing the contracts to your name
When you move in, you should change the utility contracts to your name. This process is called a cambio de titularidad (change of ownership). It protects you from the debts of previous tenants. It also ensures you control the contracts.
Required details for the transfer
You need specific details to complete the transfer. Gather these documents before contacting the provider:
- Passport or NIE : Your identification. NIE guide.
- Rental contract : Proof that you are the tenant. what to check before signing a lease in Spain.
- IBAN : Your bank account number. The utility company will debit the bills directly from this account. best bank accounts for expats in Spain.
- CUPS : The Código Universal del Punto de Suministro (universal supply point code). This is a unique 20- or 22-character code.
Finding the CUPS number
The CUPS number identifies your specific electricity or gas connection. You can find it on a previous utility bill from the landlord. Ask the landlord for a copy of a recent bill during your move-in inspection.
Debts from previous tenants
Sometimes previous tenants leave unpaid bills. The utility company might refuse to supply power until the debt is paid.
You can protect yourself from these debts. When you request the transfer, ask for a cambio de titularidad sin subrogación.
This option creates a brand new contract in your name. It ensures you do not inherit the previous tenant’s debts. The utility company must collect the debt from the previous owner or tenant.
How electricity bills work
The Spanish electricity market has two types of rates. You can choose which rate suits your needs.
Regulated market versus free market
The regulated market is called PVPC (Precio Voluntario para el Pequeño Consumidor). Under this rate, electricity prices change hourly based on market demand.
The free market is called mercado libre. Under this rate, you pay a fixed price agreed upon in your contract.
Off-peak and peak hours
Under the PVPC rate, prices are split into three time periods. You can save money by running appliances during cheaper hours.
- Horas valle (off-peak hours) : The cheapest period. It runs from 12:00 AM to 8:00 AM on weekdays, and all day on weekends and national holidays.
- Horas llana (flat hours) : The medium-price period. It runs from 8:00 AM to 10:00 AM, 2:00 PM to 6:00 PM, and 10:00 PM to 12:00 AM.
- Horas punta (peak hours) : The most expensive period. It runs from 10:00 AM to 2:00 PM and 6:00 PM to 10:00 PM on weekdays.
Power capacity limits
You must also select a power capacity limit called the potencia contratada. This is the maximum electrical power you can use at one time, measured in kilowatts.
If you turn on too many appliances, the electricity will trip. You must pay a fee to change this power capacity limit.
How water and gas bills work
Water and gas bills have different rules and providers from electricity.
Water bills
Madrid has only one water provider. This public company is called Canal de Isabel II.
You cannot choose a different provider. Water bills are sent every two months. The water quality in Madrid is excellent. You can drink directly from the tap.
Gas bills
Many apartments in Madrid use gas for heating and hot water. This system is called calefacción de gas.
Gas bills are sent every two months. You can choose your gas provider from the free market.
Reading the utility meters
You must read the utility meters on your move-in day. The meters are called contadores.
Locate the water meter (contador de agua) and the electricity meter (contador de luz). Take photos of the meter readings.
Send these photos to your landlord. This ensures the utility company does not charge you for the previous tenant’s consumption.
Questions and answers
How do I pay my utility bills?
Direct debit. In Spain, utility companies debit the bills directly from your Spanish bank account. This automatic payment is called domiciliación bancaria.
Can I keep the bills in the landlord’s name?
Yes, but it is not recommended. Some landlords keep the bills in their name and ask you to pay them. This is risky because you cannot resolve contract issues yourself.
What should I do if the electricity trips?
Reset your fuse box. The fuse box is called the cuadro de luces. Turn off some appliances and flip the main switch back up. If it trips frequently, you need a higher power capacity.
How much do utilities cost in Madrid?
Between €100 and €200 per month. A typical budget is €50 for electricity, €20 for water, and €50 for gas. Costs are higher in winter due to heating.
How long does it take to transfer contracts?
One to two weeks. The transfer process is free. The utility company will complete the transfer within two billing cycles.
Can I change my utility provider?
Yes. You can switch electricity and gas providers at any time. There are no fees for switching unless you are under a fixed-term contract.
