Video: The CPI moderated to 7.3% in October due to electricity and gas, but food soared
Today’s electricity price for regulated rate customers drops again, this time by 8%. Check the hourly price of electricity in detail for this Wednesday, November 16
New respite for consumers with the drop in the price of electricity today, which falls for the second day in a row. This time it is 8% that is added to the 23% of the previous day. Thus, this Wednesday, November 16, the price of electricity remains at 103.25 euros per megawatt hour (MWh), fortunately quite far for families, from the psychological barrier of 200 euros that has been overcome in previous months. .
This Tuesday the final figure for the Consumer Price Index for October was released, which reveals that electricity fell by 15% that month over the previous year (although food continued to become more expensive). The cost of electricity for the consumer has become cheaper in these 12 months thanks also to the tax reductions applied to the bill (without them the decrease would be 11.5%). The comparison with September yields a clear figure: a drop of 22.5% per month in the price of electricity.
However, it is still interesting for families to know what time to start electrical appliances with large energy consumption. In this sense, five household appliances stand out as the ones that generate the most energy expenditure: the dryer, the dishwasher, the refrigerator, the washing machine and the television. Thus, this Wednesday, November 16, the price of electricity in the wholesale market (‘pool’) drops 45 euros in the last two days to stand at 103.25 euros per MWh on average before applying the compensation to gas companies , as reported today by the Iberian Energy Market Operator (OMIE).
Therefore, prices remain contained compared to previous months, far from those 200 euros per MWh that were exceeded in summer, for example. The experts remain vigilant to one of the great factors that affect the cost of electricity, which is the price of gas. At the gates of winter and with the war in Ukraine with no sign of ending, it is a key factor despite the efforts of European countries to diversify their suppliers. It is foreseeable that the good weather, which has helped in September and October to keep energy costs down too much, will end in the coming days.
Consumers will continue to benefit from the ‘Iberian exception’ mechanism, which serves to set a cap on the price of gas for electricity generation. Without it this Wednesday, the price would be an average of 135.76 euros/MWh, which is 32 euros/MWh more than with the compensation for customers of the regulated rate, who will thus pay 24% less on average. In this regard, it is important to take into account that the compensation for gas companies is slightly negative (-0.02 euros/MWh).
Even with everything, these more contained prices in recent months are due to the confluence of several factors: the lower demand for electricity -due to the high temperatures these days-, a greater contribution of renewable plants to the electricity ‘mix’ without need to pull both gas combined cycle plants and the greater contribution of renewable energy, especially wind.
Faced with this situation, the Government of Spain decreed a series of energy aids for families with the aim of benefiting households. The good CPI figures invite optimism. “The price curve is bending”, according to sources from the Ministry of Economic Affairs and Digital Transformation, citing measures such as the Iberian mechanism, the public transport discount or the reduction of taxes on the gas and electricity bill , as well as the drop in energy prices in international markets.
Off-peak electricity prices
However, consumer organizations demand greater discounts. For example, Facua – Consumidores en Acción, has published a report that shows how so far this year the three most expensive bills in the history of Spain have been registered: in March it reached 176.73 euros, in August 158.30 euros and in July at 142.40 euros. The Facua study also reveals that in September the ‘valley’ period (from midnight to 8:00 a.m., Saturdays, Sundays and holidays) was on average more expensive than the ‘flat’ period (Monday to Friday from 8 to 10, from 2 to 6 p.m. and from 22 to 00 hours). Thus, the first had an average price of 33.12 cents per kWh and the second 32.56. Peak hours stood at 38.45 cents.
Thus, in a context of continuous price increases for all kinds of products, the consumer is forced to plan in detail when to carry out the domestic tasks that depend on their electrical appliances. Thus, checking the hourly rates is a real help for homes, since saving energy by the hour improves our economy. Due to these constant increases in electricity prices, Spain supports the mandatory cut in electricity consumption, mainly at peak hours, one of the measures that are on the table of the European Commission.
Price of electricity today Wednesday, by the hour
The wholesale market electricity rate directly influences the final cost that the consumer has to pay to start up their household appliances hour by hour, hence the price of electricity today is set at 0.175 euros/kWh. once the corresponding charges and tolls have been added.
Light rate today Wednesday November 16, hour by hour
cheapest hour
from 02:00 to 03:00 hours, with 0.127 euros/MWhmost expensive hour
from 9:00 p.m. to 10:00 p.m., with 0.234 euros/MWh
In this way, families will not be able to adjust their schedule to be able to take full advantage of the cheapest section of the electricity rate, since the cheapest electricity price occurs between two and three in the morning, with 0.127 euros/kWh. On the other hand, the most expensive time is at the end of the day, from nine to ten at night, with 0.234 euros/kWh.
With these records in mind, today, Wednesday, November 16, it is once again key to know what time the cheapest electricity price is.
Iberian exception to contain the price of light
The Iberian mechanism, which entered into force on June 15, limits the price of gas for electricity generation to an average of 48.8 euros per MWh for a period of twelve months, thus covering the coming 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, depending on the tolls and charges established in each of the hourly bands of the electricity tariff. In fact, the National Commission for Markets and Competition (CNMC) has verified that in 2021, within the framework of the upward spiral of energy, around 1.25 million people went from the PVPC to a rate on the free market at a fixed price.
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.