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The price of electricity continues to drop today, this time by 60%. Check the hourly price of electricity in detail for this Friday, December 23, which marks the annual minimum.
The drop in the price of electricity this week becomes a record today when a 60% drop is added in just one day. Thus, this Friday, December 23, the cost of electricity in the wholesale market drops to 21.12 euros per megawatt hour (MWh), with which the consumer will pay the lowest price not only so far this year but since the May 9, 2021.
Compensation for gas companies is added to this pool price, which must be paid by consumers who are beneficiaries of the measure, consumers of the regulated tariff (PVPC) or those who, despite being on the free market, They have an indexed rate, which for this Friday, December 23, is at negative levels: -1.22 euros/MWh.
To see the extent of this decrease in energy cost, it is enough to remember that just one year ago, on December 23, the average price of electricity was 383.67 euros/MWh for the 21 that are marked today, as announced today by the Operator of the Iberian Energy Market (OMIE). In summer they came close to 500 euros/Mwh.
However, despite these decreases, the bill is being more expensive in December than the previous month since the average for regulated rate customers linked to the wholesale market between December 1 and 22 is 174.21 euros/MWh of average, compared to 116 in the same period of the previous month. Given this instability in electricity prices, it is still recommended for families seeking to save costs to know daily what are the cheapest hours to start up the appliances with the highest energy consumption. Energy saving experts recall that there are five household appliances that consume the most electricity: the dryer, the dishwasher, the refrigerator, the washing machine and the television.
Clean energies
As was the case at the beginning of November, Spain is benefiting from the prevailing good weather conditions, with mild temperatures and plenty of wind and rain. This situation allows a greater production of clean energies so that this Thursday they contributed 70% of the set (38% wind and 26% hydroelectric).
Also the price of gas, lower these days, is helping to reduce bills in companies and homes. However, experts remain vigilant to one of the major factors that affect the cost of electricity, the price of gas, highly conditioned by the weather but also by the war in Ukraine. Another key factor is that, as reported by Red Eléctrica de España (REE), the state is significantly reducing its electricity consumption. In November it was 9% year-on-year and in December we have already accumulated a 7% decrease.
Thus, in the absence of the mechanism of the so-called ‘Iberian exception’, which is also putting a cap on the price of gas for electricity generation, the price of electricity in Spain today would be on average 102.07 euros/MWh, which which means 80.95 euros/MWh more than with the compensation for customers of the regulated rate, who will thus pay 79% less on average.
On the other hand, and due to the instability of energy prices, the Government has approved a 9.2% reduction in the fixed part of the electricity bill, one of the amounts that the consumer pays for the contracted power regardless of what be consumed. The decision is due to forecasts that energy costs will be higher than usual even in the coming months.
The gas conditions the rises in light
The president of the Electricity Market Operator (OMEL), Carmen Becerril, pointed out a few days ago that the current energy context “is dominated by a stressful situation and full of uncertainties”, and has predicted that the return of electricity prices to the environment of 50 euros per megawatt / hour (MWh) is “a bit far”.
Becerril considers that electricity market futures predict electricity prices of more than 200 euros/MWh for 2023, 150 euros/MWh for 2024, 91 euros/MWh for 2025 and 75 euros/MWh for 2026, compared to the reference price that had been around 50 euros/MWh in the last 25 years. He also added that by 2032 the future price is around 52.61 euros / MWh, so “50 euros / MWh are a bit far away,” he said.
The determining factor of this dynamic, as explained by the president of OMEL, is natural gas, with a skyrocketing price compared to the reference of 20 euros/MWh that had been normal in previous times. “Today it does not exist and we do not know when we are going to reach that equilibrium point again,” she warns.
Hence, all the countries of the European Union have agreed to apply a ceiling of 180 euros per megawatt hour to imported gas. The mechanism will come into operation on February 1 and will be activated automatically as soon as the three set requirements are met: a price above 180 euros/MWh for three consecutive days and with a difference of 35 euros compared to other international markets. Once activated, the mechanism will apply for 20 days.
The Community limitation actually affects imports of natural gas whatever its use. While the Iberian mechanism impacts the price of gas used to produce electricity in combined cycle plants. In other words, initially the cap on European gas will not have an impact on the Spanish market, according to Jose María Camarero.
Price of light today Friday for hours
The wholesale market electricity rate directly influences the final cost that the consumer has to pay to start up their electrical appliances hour by hour, hence the price of electricity is established at 0.086 euros/kWh. once the corresponding charges and tolls have been added:
Price of electricity today Friday December 23, hour by hour
cheapest hours
from 01:00 a.m. to 02:00 a.m., with 0.038 euros/kWhmost expensive hour
from 8:00 p.m. to 9:00 p.m., with 0.176 euros/kWh
This Friday the cheapest hours are not the most appropriate to be able to save, since it coincides with the section from one to two in the morning, with a price of 0.038 euros/kWh. On the other hand, the most expensive is from eight to nine at night, with 0.176 euros/kWh.
Iberian exception to contain the price of light
The Iberian mechanism, which entered into force on June 15 and will be followed by the entire European Union since February, limits the price of gas for electricity generation to an average of 48.8 euros per MWh over a twelve-month period, covering thus next winter, a period in which energy prices are more expensive. Specifically, the ‘Iberian exception’ sets a path for natural gas for electricity generation at a price of 40 euros/MWh. in the initial six months, and thereafter, a monthly increase of five euros/MWh. until the end of the measure.
The prices of the ‘pool’ have a direct impact on the regulated tariff -the so-called PVPC-, to which almost 11 million consumers in the country are covered, and serve as a reference for the other 17 million who have contracted their supply in the free market . For this reason, one more day the price of electricity will vary significantly from hour to hour throughout the day again, depending on the tolls and charges established in each of the hourly bands of the electricity tariff.
One of the keys to saving is to use the eco mode of devices such as the dishwasher
Tips for household appliances that consume the most
In all homes we have large electrical consumption appliances. According to a study by the OCU, the household appliances that require the most energy are, in this order: dryer, dishwasher, refrigerator, washing machine and television. It is clear that in most of them there is not much room for savings since it is not possible to disconnect them.
What consumers can do is make the most of the capacity of the refrigerators and adjust the thermostat between 4 and 6º, and above all avoid that the door remains open for too long. When choosing its location, it is very important that the fridge is located away from the oven, a radiator or a sunny window or balcony.
Other tips that serve to save on the electricity bill are not leaving mobile chargers or headphones connected for longer than necessary, turning off devices that are not being used, not leaving the television on if it is not being watched, etc.