Thursday, February 16, 2023
Good news for the pockets of consumers thanks to the notable drop in the price of electricity today. Thus, this Friday, February 17, the cost of electricity falls by 8.66% to stand at 131.46 euros/MWh, according to the Iberian Energy Market Operator (OMIE). Thus, the average of what the consumer pays for electricity these first 17 days of the month is 133 euros/MWh, 86% more than in the same period last year.
Hence, experts recommend that consumers pay attention to what are the cheapest hours to start up the appliances with the highest energy consumption. Energy saving specialists advise families to ensure that unused appliances remain unplugged, take short showers and, among other saving measures, pay attention to the five household appliances that consume the most electricity: the dryer, the dishwasher, the refrigerator, washing machine and television.
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Precisely the OCU has published a study this week in which the differences that may exist in the energy consumption of one refrigerator or another are revealed. “The differences can be up to 337 Wh,” say its specialists, which means a difference of 450 euros during the useful life of this device. The consumer organization also recalls the best trick to save electricity in refrigerators: do not place them near heat sources such as the oven.
Increased contribution of renewable energy
The lowest electricity prices at the beginning of 2023 were possible thanks to the weather conditions with abundant rains that have filled the swamps, added to the abundance of wind throughout the peninsula. Thus, as reported by Red Eléctrica, so far this year the vast majority of days the production of green energy has far exceeded the rest of that generated in Spain, although this week it has dropped notably. This Thursday has accounted for 37% of the mix.
Also the price of gas, lower at the end of the year, 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 factor that is undoubtedly helping to save in the budget of users of electricity rates is the mechanism of the ‘Iberian exception’ that establishes a maximum ceiling in the price of gas for electricity generation. Without it this Wednesday, the price of electricity in Spain would be an average of 140.21 euros/MWh, which is 8.75 euros/MWh more than with the compensation for customers of the regulated rate, who will thus pay 6 24% less on average.
Extension of the Iberian exception
Precisely both Spain and Portugal have taken the reins of the process to request Europe to extend the Iberian exemption beyond May, as planned. Third Vice President Teresa Ribera has shown her optimism that this be achieved after the meeting held with the Competition Commissioner, Margrethe Vestager. This mechanism has made it possible to lower the bill of households and companies by 4,577 million euros, according to the calculations of the Ministry for the Ecological Transition.
The countries of the European Union agreed in December 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 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.
Price of electricity today 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 is established at 0.207 euros/kWh. once the corresponding charges and tolls have been added.
Price of light today February 17
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Cheapest hour:
04-05 h, con 0,154 euros/kWh -
most expensive hour
19-20 h, con 0,278 euros/kWh.
So this Friday in general it will be cheaper at any time to put the appliances with the highest consumption, especially at dawn. Between four and five in the morning is the cheapest hour, with 0.154 euros/kWh, while the most expensive is again from seven to eight in the afternoon, this time with 0.278 euros/kWh.
The effectiveness of the Iberian exception
The ‘Iberian mechanism’, which came 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 winter, the period in which that energy prices tend to be higher. This mechanism was approved after the price of light reached a maximum of 700 euros per megawatt hour in March of this year. The so-called ‘Iberian exception’ sets a path for natural gas for electricity generation from a price of 40 euros/MWh in the initial six months, and subsequently, a monthly increase of five euros/MWh until the end of the measure.
The average price of electricity for regulated rate customers linked to the wholesale market was 212 euros/MWh in 2022 until June 15 (before the entry into force of the gas cap), while in the rest of the year ( taking into account the calculation with this exceptional mechanism) the average price was 208 euros/MWh. If this measure had not existed, the average price of electricity between June 15 and December 31, 2022 would have been 256 euros/MWh, that is, 23% higher than what consumers have paid.
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.
Tips to save energy at home
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. 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.