What do P1, P2 and P3 mean in electricity?
If you don’t know what they mean, you’re probably paying more than you need to on your electricity bill. And if you’re determined to save money, carry on reading.
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All the information on light sections P1, P2 and P3
Now that you have the list of all the numbers you can call for various enquiries or situations, here is a breakdown of some of the most common procedures you can carry out over the phone with Naturgy, and what you’ll need to do so.
1. P1, P2 and P3: what are they?
These three terms refer to the well-known time bands that show you the prices of electricity throughout the day. You’re bound to be familiar with their names by now, as they’ve been the talk of the town since July 2021:
- Peak period
- Flat period
- Off-peak period
And the main difference between them is the price per kilowatt, which – depending on the band in which your electricity usage falls – will mean you pay more or less on your electricity bill. That’s why it’s so important to understand them and find the electricity tariff that best suits your needs.
2. Timetables for the different sections of the route
The time slots are distributed as follows throughout the day:
- Peak times: the most expensive period of the day, from 10.00 to 14.00 and from 18.00 to 22.00.
- Standard: at an average cost, available from 8 am to 10 am and from 2 pm to 6 pm.
- Off-peak: the cheapest fare, valid from midnight to 8 am, and 24 hours a day at weekends and on public holidays.
3. P1, P2 and P3, depending on whether the market is free or regulated
First and foremost, to understand how these time bands will affect you, it is important to know which electricity market you are in.
There are two types: the regulated market and the free market.
· Regulated market
The regulated market is characterised by being regulated by the Government and by not having fixed electricity prices.
Under the PVPC (Voluntary Price for Small Consumers) tariffs – which are the ones used in this market – you’ll find that there are 24 different prices for each hour of the day. And not only that, but these prices change every day.
How can you find out the price per kilowatt?
It’s very simple: at Quécomparo.es, we update electricity prices daily so you can plan your usage times to save on your electricity bills.
But why do electricity prices change?
Well, this is because, in the regulated market, you pay for your electricity at cost price – that is, at the same price at which the supplier has purchased it on the wholesale market.
This price is determined by supply and demand, which is why it is never the same – it depends on various factors, such as the price of gas or the time of year.
That is precisely why, given the current situation, we do not recommend this market and its tariffs – especially if you’re looking to save a few euros at the end of the month.
· Free market
In the free market, the price of electricity will depend on the tariff you have agreed with your electricity supplier, as it is they who set the price per kilowatt.
In which fare categories do you need to take the P1, P2 and P3 bands into account?
- Index-linked tariff: this tariff works in the same way as the PVPC tariff on the regulated market: the supplier charges you for each kWh of electricity consumed at the same price at which it purchased it on the wholesale market, plus a small administration fee (which constitutes its profit margin). As a result, you will have 24 different prices, which will change every day.
- Fixed-rate tariff: this involves time-based pricing across three bands, but with the difference that the prices are always fixed for each band. This offers greater peace of mind.
4. How can you tell whether a tariff is unregulated or regulated?
To find out which electricity market you’re on, all you need to do is check one of your electricity bills.
Here you’ll be able to see all the details relating to your tariff, such as your contracted power or whether you have any extra services with your electricity supplier. You’ll also see the three periods – P1, P2 and P3 – listed under the heading ‘Consumption information’.
Understanding your electricity bill and knowing how to read it can help you save money at the end of the month.
5. How can you save money on P1, P2 and P3?
Adjusting the contracted power.
Some energy suppliers allow their customers to sign up for two different tariff rates: peak-time rates (which are more expensive) and off-peak rates (which are cheaper).
The cost of these is a fixed charge on your electricity bill, and knowing how to manage them is the key to saving money.
To save money, we recommend that you opt for a higher power rating during off-peak hours, which will allow you to use more electrical appliances at a lower price per kilowatt, and a lower power rating during peak hours, when you are expected to use less electricity.
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