Sharp drop in the price of electricity today: the cheapest hours

Sharp drop in the price of electricity today: the cheapest hours

Thursday, March 30, 2023

The price of electricity experiences a notable drop again today. After the decrease of almost 55% of the previous day, this Friday, March 31, a new decrease of 46.86% is added. Thus, the cost of electricity drops to levels that help consumers start up household appliances without multiplying their bill at the end of the month. Specifically, the price of electricity drops to 16.53 euros/MWh, according to data released by the Iberian Energy Market Operator (OMIE). This is the second lowest price so far this year

Given that we continue in a context of more or less high prices in which it is foreseeable that they will rise again, energy saving experts advise families to ensure that unused appliances remain unused, take short showers and, among other measures savings, 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.

The average price of electricity in the monthly accumulated until March 30 stands at 89.6 euros/MWh, that is, 33% less than February.

Greater contribution of renewable energy in the price of electricity

The lowest electricity prices in this period are due to adequate weather conditions, with full swamps and abundant winds. Thus, so far in 2023, most days the production of green energy has exceeded the rest of that generated in Spain, according to Red Eléctrica.

The growth in the number of wind farms in Spain is being noted very positively, with 395 new wind turbines installed in 2022, according to data from the Wind Business Association. Thanks to this growth, last year wind power increased by 100% to reach 1,670 MW.

Also the price of gas 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.

Price of electricity today by the hour

The price of electricity on the wholesale market directly influences the final cost that consumers have to pay to start up their household appliances hour by hour.

Price of light today March 31

  • Cheapest hours:
    16.00-17.00 h, con 0,19 euros/MWh.

  • most expensive hour
    21.00-22.00 h, con 35,61 euros/MWh.

Thus, this Friday arrives with practically free hours for the electricity consumer, especially from four to five in the afternoon when electricity will cost only 19 cents per MWh. The increase is not much higher since the most expensive hour is from 9:00 p.m. to 10:00 p.m., with 35 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. Throughout this 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.


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