When you rent or buy an apartment in Madrid, you must set up your utilities. This guide explains how to sign up for electricity and gas, change contract ownership, and avoid overpaying on your energy bills.
Understanding Spanish energy markets
Spain has a deregulated energy market. You must choose between two types of tariffs when signing up for electricity or gas.
- Regulated market (PVPC): The electricity price changes hourly based on market supply and demand. This rate is set by the government. It is called PVPC (Precio Voluntario para el Pequeño Consumidor). You can only sign up for this rate with specific reference marketers (such as Curenergía or Energía XXI).
- Free market (Mercado libre): You pay a fixed price per kilowatt-hour (kWh) agreed in your contract with the provider. Companies like Iberdrola, Endesa, and Naturgy offer these plans. It is easier to budget, but the rates can be higher if you do not compare options.
How to change utility ownership
If you are renting a flat, the electricity and gas meters should already be connected. You do not need to register a new connection. Instead, you must do a cambio de titular (change of ownership).
This transfers the contract and billing to your name. Changing the ownership is free. You must not do a cambio de cuenta (change of payment bank account) while keeping the landlord’s name. If you do, you remain liable for the landlord’s tariff and debts.
How the apartment deposit works
Optimizing your contracted power
Your Spanish electricity bill contains a fixed charge based on your potencia contratada (contracted power capacity). This is the maximum amount of electricity your home can pull from the grid at one time, measured in kilowatts (kW).
If you run too many appliances at once and exceed this limit, your power will shut off automatically. However, if your contracted power is too high, you pay extra fees every month even if you do not use the electricity.
Standard apartments in Madrid need a power capacity of 3.45 kW or 4.6 kW. Look at your previous bills. If you never trigger the power switch, check if you can lower your capacity to save up to €100 per year.
Document checklist and process steps
You need specific details from the property and the previous tenant to complete the transfer.
Document checklist
- Your identity document (Passport, DNI, or NIE)
- The full address of the property
- The CUPS (Universal Supply Point Code) number found on a previous bill
- Your Spanish bank account number (IBAN)
- A copy of your rental contract (some providers ask for this)
Steps to change ownership
- Get a copy of the latest utility bill from your landlord. Find the CUPS number and the name of the current provider.
- Contact the customer service department of the provider online or by phone.
- Request a “cambio de titular”. Input the CUPS code and the previous contract holder’s name.
- Submit your NIE or passport details and your Spanish bank account details.
- The provider will transfer the contract to your name within 1 to 7 business days. You will receive your first bill at the end of the month.
Questions and answers
Can I change the energy provider?
Yes. Once the contract is in your name, you can switch to any other provider on the free market at any time without fees, unless your contract has a commitment period.
What is the CUPS code?
It is the supply identifier. The CUPS starts with “ES” followed by 20 characters. It identifies your physical meter. It is unique to the property and stays the same even if you change landlords or providers.
How much are utility bills in Madrid?
About €80 to €150 per month. A typical 1-bedroom apartment pays €50 to €80 for electricity. In winter, heating costs can increase this by €50 to €100, especially if you have electric radiators or gas heating.
Can I set up utilities with a passport?
Yes. Most energy companies allow you to register using a passport, but you must register with a Spanish bank account for direct debits.
