If your electricity quote mentions Fixed, p1, p2, p3 and market price, it is really talking about how and when you pay for power. This is where many expats get caught out – not because the tariff is bad, but because nobody explains it properly.

What Fixed, P1, P2, P3 and Market Price Mean

A fixed tariff is the simplest. You pay the same unit rate all day, every day. That makes it easy to understand and easy to budget for, especially if you do not want to think about time bands.

P1, P2 and P3 are time-of-use periods. P1 is usually the most expensive, P2 sits in the middle, and P3 is the cheapest. The exact times depend on the tariff, but the basic idea is simple: use more electricity in the cheaper periods and you can save money.

Market price means your rate follows the wholesale electricity market. That can work well when prices are low, but it can also mean sharp increases. If you like certainty, market-based pricing is not always the most comfortable option.

Which Option Suits Your Home or Business?

It depends on how you actually use electricity. If you are out all day and run the washing machine, dishwasher or water heater at night, P1, P2 and P3 can be a good fit. If your usage is spread evenly across the day, a fixed tariff may work out better even if the headline rate looks slightly higher.

For holiday homes, the right answer can be different again. Low usage properties often need a close look at both the standing charge and the unit price. For small businesses, timing matters even more. A café, office or rental property may use most of its power in expensive periods, which can make a time-based tariff less attractive.

The Bit Most People Miss

The cheapest-looking tariff is not always the cheapest bill. Some plans look good on paper but do not match your habits. Others are confusing because the contract is in Spanish, the rate structure is unclear, or extra charges are buried in the small print.

That is why plain English advice matters. At Compare In Spain, we help customers understand what they are paying for and whether fixed, p1, p2, p3 and market price options actually suit their home or business. Saving U Money is what we do – and less confusion means more cash in your pocket.

If you are comparing tariffs, do not just ask which one is cheapest. Ask which one is cheapest for the way you live.