---
title: How to read your electricity bill step by step | Holaluz
description: Learn with Holaluz how to read your electricity bill and what energy, power, PVPC, meter readings, network charges and other items on your bill mean.
image: https://blog.holaluz.com/hubfs/Gu%C3%ADa%20para%20entender%20la%20factura%20de%20la%20luz%20energ%C3%ADa%2c%20potencia%2c%20P1P2P3%20y%20PVPC.png
---

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# A Guide to Understanding Your Electricity Bill: Energy, Power, P1/P2/P3 and PVPC

![Laura Benitez - Social Media Specialist en Holaluz](https://blog.holaluz.com/hs-fs/hubfs/laura%20benitez.webp?width=48&height=48&name=laura%20benitez.webp)

 Laura Benitez - Social Media Specialist en Holaluz

[The basics](https://blog.holaluz.com/en/tag/the-basics)

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Understanding your electricity bill is easier when you know what each section means. Although the layout may vary depending on your electricity supplier, every bill includes information about how much electricity you use, your contracted power capacity, your tariff and the charges that make up the final amount.

![Woman reviewing her electricity bill and doing calculations with a calculator.](https://blog.holaluz.com/hs-fs/hubfs/Gu%C3%ADa%20para%20entender%20la%20factura%20de%20la%20luz%20energ%C3%ADa%2c%20potencia%2c%20P1P2P3%20y%20PVPC.png?width=1920&height=1080&name=Gu%C3%ADa%20para%20entender%20la%20factura%20de%20la%20luz%20energ%C3%ADa%2c%20potencia%2c%20P1P2P3%20y%20PVPC.png)

Knowing how to interpret an electricity bill will help you understand why you pay each month and check whether your contract still suits your household’s needs.

## What information appears on an electricity bill?

An electricity bill usually includes:

- details of the account holder and supply point
- billing period
- electricity consumed
- contracted power capacity
- tariff and applicable prices
- meter readings
- taxes and other charges
- supplier and contract details

The key is to distinguish between charges that depend on how much electricity you use and those that are fixed.

## Energy and power costs: what they mean on your bill

Two of the **main items** are **electricity consumption** and **contracted power capacity**.

The **energy cost covers** the electricity you have used during the billing period. Consumption is measured in kilowatt-hours (kWh) and depends on your habits: heating and cooling, appliances, lighting and how much time you spend at home.

**Contracted power capacity**, by contrast, is measured in kilowatts (kW) and determines how many appliances you can use at the same time. It is part of the fixed charges, so you pay it even if you use very little electricity.

**If your contracted power capacity is higher than you need,** you may be paying too much. Find out more in [our guide to contracted power capacity](https://blog.holaluz.com/potencia-contratada-la-guia-definitiva?hsLang=en).

## What do P1, P2 and P3 mean on an electricity bill?

Some electricity bills refer to P1, P2 and P3 to distinguish between different consumption periods.

These usually correspond to:

- **P1 or peak:** the most expensive period
- **P2 or shoulder:** the intermediate period
- **P3 or off-peak :** the least expensive period

If your tariff has different prices depending on the time of day, your bill may show how many kWh you used in each period. This helps you see when you use the most electricity and consider shifting some activities to cheaper times.

Not all tariffs work this way. If you have a fixed price throughout the day, the time of consumption will have less impact on your energy costs.

## What does PVPC mean on an electricity bill?

Your bill also lets you check whether you are on the **free market** or the **regulated market**.

In the free market, each electricity supplier sets its own terms and can offer different [electricity tariffs](https://www.holaluz.com/en/electricity/electricity-tariffs), such as fixed prices or personalised monthly payments.

The regulated market includes **PVPC or Voluntary Price for Small Consumers**, whose calculation method is regulated and whose price may vary with developments in the electricity market.

If PVPC appears on your bill, it means you are on this regulated tariff, and your supplier is a designated reference supplier.

## What are meter readings?

Meter readings show how much electricity you have consumed during the period.

Your bill may show the **previous reading, the current reading and the resulting consumption**, as well as whether the reading is actual or estimated.

If you notice an unexpected increase, checking the readings and billing dates can help you determine whether you really used more electricity or whether an adjustment was applied.

## Taxes, network charges and other items on your bill

In addition to energy and power, other items may appear:

- **meter rental**
- **taxes**
- **additional services**
- **discounts or promotions**
- **billing adjustments**
- **compensation for surplus electricity** if you have solar pannels

**Regulated network tolls and charges** also apply, relating to the use of electricity networks and other system costs. These costs may be included in the energy and power charges shown on your bill.

That is why two bills showing similar consumption do not necessarily have the same total.

## How to find out why your bill has increased

If you are paying more than usual, check the following:

- **Consumption:** have you used more kWh?
- **Price:** has your tariff price changed?
- **Power:** do you still need your contracted power capacity?
- **Period:** does this bill cover more days than the previous one?
- **Other items:**  are there services, adjustments or new charges?

Comparing these elements is more useful than looking only at the final amount.

**Want to calculate how much you should pay?**

Understanding each item helps you see where the total comes from. If you also want to calculate energy, power and taxes, see our dedicated guide.

[Find out how to calculate your electricity bill step by step](https://blog.holaluz.com/en/how-to-calculate-an-electricity-bill?hsLang=en)

## Frequently asked questions about electricity bills

**What does kWh mean on my bill?**  
It is the unit used to measure electricity consumed during the billing period.

**What is the difference between power and energy?**  
Power is the electrical capacity you have contracted; energy is the electricity you consume .

**What do P1, P2 and P3 mean?**  
They identify different time-of-use consumption periods in tariffs that include them.

**How do I know whether I have PVPC?**  
It will be identified in your contract or bill information as Voluntary Price for Small Consumers.

**Why am I paying more if my consumption is the same?**  
It may be due to the energy price, billing period, taxes, additional services or billing adjustments .

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