Spanish electrical utility Iberdrola and Vodafone’s Spanish unit have signed a deal to cross-sell electricity and telecoms services to customers in Spain.

Under the terms of the deal, Vodafone customers who switch their electricity supply to Iberdrola will receive a €10 ($11.5) per-month discount on their Vodafone bill for two years. Conversely, Iberdrola customers who take out a fiber and mobile package with Vodafone will receive the equivalent credit through Iberdrola’s Mi Iberdrola loyalty program, redeemable against electricity bills or other services.

Both companies said they intend to develop further joint commercial offers through their respective distribution networks. The partnership is now active, having been made live on 9 June.

“We are combining the strength of two major companies so that more than 16 million households in Spain can access the best telecommunications and more competitive energy under advantageous conditions,” said Vodafone Spain chief executive José Miguel García.

“Iberdrola España and Vodafone España are joining forces to deliver a clear and tangible benefit for customers. Through this partnership, we aim to help millions of households enjoy the best connectivity at home and on the move, powered by emission-free energy and offered at a highly competitive price,” added Mario Ruiz-Tagle, CEO of Iberdrola España.

Existing Vodafone customers in Spain will be able to access the offering.

The partnership builds on an existing relationship between the two firms. In 2023, the companies inked a series of Power Purchase Agreements (PPAs) to supply the telco with 410GWh of solar power per year across Germany, Portugal, and Spain.

Based out of Bilbao, Spain, Iberdrola is one of the world’s largest electrical utilities, active across a range of markets, including the UK, US, and Latin America. According to recent reports, the company operates more than 58GW of generation assets, most of which are renewable. The company has signed several PPAs with some of the world’s largest technology companies, including Microsoft and Amazon.