Wednesday, March 8, 2023
Good news for consumers with today’s sharp drop in the price of electricity. This is a decrease of 25.61%, which represents slightly more than the 60% accumulated in the last three days and which significantly alleviates electricity bills in homes and businesses. This cut lowers the average cost for regulated rate customers to 73.59 euros per megawatt hour. It is about a drop of about 70 euros in these last three days, which is helped by the rise in temperatures.
However, in a context of high prices, energy saving experts advise families to ensure that unused appliances remain unused, take short showers and, among other saving measures, pay attention to when to start the five household 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 (formerly called Red Eléctrica), so far this year most days the production of green energy has exceeded the rest of that generated in Spain. Thus, this Wednesday has accounted for 63% 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, 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.
Increase in electricity bill
The Consumer Organization has revealed this week 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.
Price of electricity today 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 9
Cheapest hours:
16.00-17.00 h, with 14 euros/MW.most expensive hour
08.00-09.00 h, with €121.36/MW.
This Thursday therefore comes with the best news for the pocket with prices at minimum, although the cheapest time to start up electrical appliances is from four to five in the afternoon, with only 14 euros/MW. The most expensive is for today, from eight to nine, with 121.36 euros/MW.
Advantages of the Iberian exception
The third vice president and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, boasted this week in the Congress of Deputies of the virtues of the Iberian mechanism, with which consumers have been able to save around 30% in the electricity bill, as explained.
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Ribera stressed that in the absence of the Iberian mechanism, consumers would have had to pay 30% more, a cost close to 5,000 million euros in the system. He also highlighted, in response to a question from the Popular Party, that “without the extension of the electric and thermal social bonus, many consumers would not have been able to put on the heating.”
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 this 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.