MémoriaIn this guide
Distributor and retailer: who does what
The first source of confusion for newcomers is that there are always two companies behind a single meter.
| Distributor (distribuidora) | Retailer (comercializadora) | |
|---|---|---|
| Role | Owns the network and the meter, takes readings, handles connections and faults | Sells you the energy and bills you |
| Choice | None: it depends on the address | Yours: you pick it and can switch |
| When to contact it | Network outage, faulty meter, checking your consumption | Contract, prices, bills, change of account holder |
What links the two is the CUPS code (Código Universal del Punto de Suministro). It is the unique identifier of each supply point, one for electricity and another for gas. It starts with “ES” and appears on every bill. With it, any retailer can find your home without ambiguity.
Ask the landlord for a recent electricity and gas bill before you even get the keys. It shows the CUPS, the name of the current account holder and the contracted power. Everything that follows starts there.
Move-in day: the checklist
In the vast majority of cases the home already has an active supply. So you are not opening a new contract as such: you are doing a change of account holder (cambio de titular), meaning the existing contract moves into your name, either with the current retailer or with a new one you choose.
A new connection (alta) is only needed if the supply has been cut off, for example after a long vacancy or unpaid bills. It takes longer and involves the distributor. In older homes, an electrical installation certificate (boletín or CIE), issued by an authorised electrician, may then be required if the existing one is too old or cannot be found.
On the day you move in, gather:
- a photo of each meter (electricity, gas, water), legible, showing the date and the day’s reading;
- the CUPS codes for electricity and gas;
- the name of the current account holder: the landlord, the previous tenant, or someone nobody has heard of (it happens);
- your NIE, which every retailer asks for;
- an IBAN for direct debit. In principle SEPA lets you use an account from any EU country; in practice some retailers ask for a Spanish IBAN.
Those photos matter: if a bill includes the previous tenant’s consumption, they are what allows you to dispute it. We also cover this in our guide to renting in Madrid as an expat.
Don’t leave the contracts in the landlord’s name “to keep things simple”. You won’t see the bills, you can’t change tariff, and in a dispute you have no leverage. Some leases state that utilities stay in the landlord’s name and are recharged to you: in that case, insist on a copy of every bill.
Electricity: account holder, power and tariff
Contracted power
In Spain you pay separately for the energy you use (in kWh) and for the contracted power (potencia contratada, in kW), charged every day whether you use it or not. It is the threshold above which the main switch trips.
- set it too high and you pay every month for capacity you never use;
- set it too low and the power cuts out as soon as the oven, the hob and the washing machine run together.
Keep the home’s existing power at first, then adjust once you know your habits. The distributor may charge a fee or take some time to make a change, so it is worth not changing blindly.
Time periods
Homes are on the 2.0TD access tariff. In practice, the price depends on when you use electricity:
- for energy, three periods: peak (punta), flat (llano) and off-peak (valle), the last one covering nights and weekends;
- for power, two periods, with the option of contracting a different value for day and night.
Running the dishwasher or charging a car at night and at weekends therefore makes a real difference, especially on an indexed tariff.
Regulated tariff or free market
Two broad families of offers exist side by side:
- the PVPC, a regulated price that follows the wholesale market hour by hour. It is only offered by the comercializadoras de referencia, a short list of designated retailers;
- free-market offers, fixed or indexed, from every other retailer, with widely varying terms.
Neither is better in absolute terms: it all depends on how you consume. Read the terms on contract length and exit penalties before signing. Eligible households can also benefit from the bono social, a discount on the bill available only through the PVPC; the conditions are set by regulation and are worth checking with a reference retailer.
Smart meters and hourly consumption
Electricity meters are now almost all remotely managed (telegestión): readings are taken remotely, with no technician visit. The distributor’s online portal usually lets you see your consumption hour by hour once you register with your CUPS. It is the most useful data you can have for choosing the right power and offer.
Natural gas: tariffs, readings and inspections
Gas works on the same distributor / retailer model, with its own CUPS. If your heating or hot water comes from an individual boiler, it is a significant cost during Madrid’s winter.
Last-resort tariff or free market
The equivalent of the regulated tariff is the TUR (Tarifa de Último Recurso). It is offered by designated last-resort retailers and depends on your annual consumption band. The rest of the market offers free-market deals, sometimes bundled with electricity. Again, compare on the basis of your real consumption.
Cubic metres and kilowatt-hours
The meter measures volume in cubic metres (m³), but the bill is calculated in kWh. The conversion uses a conversion factor, shown on the bill, which varies slightly from period to period. Don’t try to recalculate to the cent: what matters is that the opening and closing readings match reality.
Estimated readings
Many gas meters are not remotely read. Readings are often every two months and, if the technician cannot get to the meter, the bill is estimated. You can submit your own reading to the distributor or the retailer, which avoids a nasty catch-up bill at the end of winter.
Inspection and maintenance
Two separate obligations that are often confused:
- the periodic inspection of the gas installation, carried out by the distributor every five years, for which a charge applies; you are notified in advance;
- boiler maintenance, to be done regularly by an authorised technician of your choice. Check with the landlord who arranges it and who pays, according to the lease.
Beware of fake “gas inspectors” who ring the doorbell without an appointment, sometimes claiming to act for the gas company, to sell you a contract or a “mandatory check” payable on the spot. It is a common scam. The official inspection is announced by the distributor; if in doubt, sign nothing and call your distributor on the number shown on your bill.
Water: Canal de Isabel II
In Madrid there is no choice: water is supplied by Canal de Isabel II, the Community of Madrid’s public water company. Bills usually come every two months and cover water supply, sewage and wastewater treatment.
The change of account holder is done directly with Canal, online or through its usual channels, with your NIE, the lease and the meter reading.
Before you start, check how your building is set up:
- in many buildings the individual meters are in a shared room on the ground floor or in the basement: ask the concierge (portero) which one is yours;
- in others, especially older ones, there is a single meter for the whole building and water is included in the community fees (comunidad). In that case there is nothing to set up: just check in the lease who pays those fees.
How to read your meters
Electricity
The smart meter’s display cycles through a series of codes, each followed by a value. Energy readings are shown by period (peak, flat, off-peak) and sometimes as a total. For a move-in reading, photograph the display at each step of the cycle, or film it for a few seconds: that is the easiest way. The time and date shown on the meter also help identify the photo.
In an apartment building, several meters sit side by side in the same cabinet: check the flat or meter number before taking the photo. The meter number also appears on the bill.
Gas
The gas meter is usually mechanical, with number wheels. The digits on a black background show whole cubic metres; those on a red background (or after the decimal point) are the decimals. For a reading, note only the black digits.
Water
The water meter also shows cubic metres, with whole-number digits and small red dials or digits for fractions. A useful trick: turn off every tap and watch whether the meter moves. If it does, there is a leak, and you want to know that in the first week.
When you leave: closing things properly
Leaving a home deserves the same care as moving in:
- Final readings: photograph each meter on the day you hand back the keys, with the landlord present if possible.
- Change of holder or cancellation: if the next occupant takes over the contracts, a change of account holder into their name is the simplest option. Otherwise, cancel (baja), bearing in mind that cancelling cuts off the supply and the next occupant will need a new connection; agree on this with the landlord.
- Last bills: they often arrive several weeks after you leave. Keep your bank account open until they are paid, or settle them before closing it.
- Deposits: if a retailer asked for a deposit when you signed up, claim it back.
A contract forgotten in your name keeps being billed to you, including for the next occupants’ consumption. It is the most expensive situation, and the most common.
How Mémoria helps
We handle your utilities setup: retrieving the CUPS codes, move-in readings, changes of account holder, choosing a sensible contracted power and setting up direct debits. Once you are settled, our savings audit compares your contracts with your actual consumption. And when it is time to leave, we close the contracts and follow up on the final bills.
We take no commission from suppliers: our recommendations depend only on your consumption.
Frequently asked questions
How long does a change of account holder take?
On an active supply it is usually quick and causes no interruption: electricity and gas keep running during the transfer. Reconnecting a supply that has been cut off takes longer and depends on the distributor.
Can I set up the contracts without an NIE?
In practice, no: retailers ask for an NIE (or DNI) to identify the account holder. If you don’t have yours yet, the contracts can temporarily stay in the landlord’s name, provided you agree in writing on how costs are recharged and make the change as soon as your NIE arrives.
My landlord doesn’t want me to switch retailer. Can they stop me?
If the contract is in your name, the choice of retailer is yours. The meter and the installation stay attached to the home and the distributor: switching retailer touches neither the meter nor the network. Do reread the lease, though, as it may contain clauses on utilities.
My gas bill is estimated and looks too high. What should I do?
Read your meter (black digits only) and send the reading to the distributor or your retailer. The next bill will be adjusted based on the actual reading.
How do I know what power to contract?
Start with the current power, then check your hourly consumption on the distributor’s portal after a few weeks. If the switch has never tripped and your peaks stay well below the threshold, you can probably lower it.
Who pays for the gas inspection, tenant or landlord?
The periodic inspection is generally charged to the holder of the gas contract. How the cost is ultimately split between tenant and landlord depends on the lease: check it, and ask the landlord if in doubt.
Would you rather we handled it?
Thirty minutes on Zoom, no commitment. You leave with a clear plan and a precise quote, whether you work with us or not.
Book a free call Relocating an employee?Guide updated on 21 October 2026 — Spanish administrative rules change; check the critical points before acting.