What is cheaper the free or regulated market

Mari Carmen Parra
Updated:04/05/2022 17:29h

In these times when the
electricity price
has risen exponentially, citizens are looking for different options with which to see their bill reduced. Thus, if on the one hand, every day they review what are the
cheapest time slots
on the other hand, consumers are also beginning to take into account other factors, such as the fact of analyzing the
that are offered in the free market and the regulated one to opt for the best option.

Before knowing which of the two alternatives is more favorable, the first thing to know is what is meant by free market and regulated market or PVPC.

In the free market there are many companies that offer electricity, gas and maintenance services with the prices that they themselves record.

Thus, these companies normally show more varied electricity rates (stable price, hourly discrimination and flat rates). While in the regulated market it is the one that offers the voluntary price to the small consumer, whose acronym is PVPC. Obviously, this rate sets prices that are stipulated by the electricity market and that are supervised by the
Ministry of Industry, Energy and Tourism.

This modality is also called the hourly electricity rate, since, as the user knows, its price is different depending on the time of each day, depending on the energy supply and demand.

With the theory learned, which of the two markets is the cheapest? Well, to know this, it will be necessary to take into account the consumption habits of the users and the conditions offered by both the regulated and free markets.

The light and key points to consider

However, one of the main issues that must be assessed is that the regulated market must adapt consumption to the time slots for electricity, hence, if the citizen cannot consume during the so-called off-peak hours, it will be more profitable for them to stable rate of the one offered by the free market.

Another important issue to take into account is that the regulated rate opens the door to
social bonus
so that if the requirements are met, the consumer will be able to benefit from a discount on the invoice that it will be very difficult to achieve in the free market.

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