I don't know if that's true or not, but I think the only way to achieve that would be to sign up for a 1.2Kw contract (which would not support any kind of electric appliance such as an iron, let alone a heating system) and then perhaps "wire around" the meter (which would be highly illegal). And you still have to wire around their their 10x overpriced ICP and pay rent for it every month, not to mention the world's highest standing charges.

Have you ever lived in Spain?

Yes. I know it's expensive and other countries also have high prices on paper (including UK, Germany etc.), but it's always about negotiation. The problem is that it's quite difficult for people who don't speak a word of Spanish. If you look online, there are plenty of deals available where you could even use an iron:-). Deals change every day, so it's always worth looking and even ringing sales can make sense. At the end of the day it's a business like any other and they have targets. It's the same with insurance and just don't give up. Might be worth checking here:Comparador electricidad y gas

Not in Mallorca. Endesa is the only supplier, and the rates are regulated by law (Well, Endesa has a lot of influence on that). You can have Iberdrola issue the billing for it (which prevents Endesa from being a "monopoly"), but the price is within a few cents of Endesa.