Friday, March 3, 2023, 7:25 p.m.
The price of light today gives a break. This Saturday, March 4, the cost of electricity drops again to reach an amount of 138.57 euros / MWh. in the wholesale market. This represents a decrease of 2.8% in the price of electricity, as reported by the Iberian Energy Market Operator (OMIE).
Knowing the cheapest hours is key for the consumer, in order to be able to concentrate their greatest energy consumption in hours with the cheapest electricity. In addition, energy saving experts advise families to ensure that unused appliances remain unplugged, take short showers and, among other saving measures, pay attention to the five appliances that consume the most electricity: the dryer, the dishwasher , the refrigerator, the washing machine and the television.
Greater contribution of renewable energy
The lowest electricity prices at the end of 2022 and the beginning of 2023 were possible thanks to the good weather conditions with abundant rains that filled the swamps, as well as the abundance of wind throughout the peninsula. Thus, according to Redeia (previously called Red Eléctrica), so far this year the vast majority of days the production of green energy has exceeded the rest of that generated in Spain and even in February renewables have increased their production “by a 20.5% compared to the same month of the previous year» with wind power as the main protagonist of this good news.
Also the price of gas, lower at the end of the year, is helping to reduce bills in companies and homes. However, the 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 conflict between Russia and Ukraine that still has no sign of ending.
Thus, the average price of electricity until March 4 stands at 142.5 euros/MWh, that is, almost ten euros higher than the average of 132.8 euros/MWh for the same period last month.4% .
Light price increase
The Consumer Organization has recently highlighted the high electricity bill that consumers have paid this past February, with an average increase of 35% (for households with PVPC rate). Specifically, they have gone from paying an average price of 56 euros in January to 76 in February.
The OCU highlights in its statement that the wholesale price of electricity has risen “due to the lower impact of renewable energies and the lack of application of the gas cap.” Hence, this organization claims “the extension of the VAT reduction to meat and fish” and warns that “we must not lower our guard” in the face of the inflation we are experiencing.
Considering the evolution of the daily market in 2023 and the quotes of future prices until the end of the year, the estimated average price of light in the Spanish electricity market is 126.99 euros/MWh, 24.2% lower than that of 2022 , 12.3% cheaper than the German market and 22.9% cheaper than the French market, according to AEGE data.
Price of electricity today, March 4, by the hour
The electricity tariff on the wholesale market directly influences the final cost that the consumer has to pay to start up their household appliances hour by hour.
Price of light March 4
Cheapest hours:
14.00-15.00 h, con 111,9 euros/MWh.most expensive hour
20.00-21.00 h, con 173,2 euros/MWh.
Today, therefore, will be a new day in which families must be attentive to the cheapest hours to start up the electrical appliances in which they can choose the time. The section with the cheapest electricity price will be from two to three in the afternoon, with 111.9 euros/MWh, and the most expensive is again from eight to nine at night, with 173.2 euros/MWh.
Advantages 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. From last Thursday and throughout the month the price will be 55 euros/MWh.
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.