Sunday, March 19, 2023
The instability in the electricity markets continues, generating a notable rise in the price of electricity today, after several days of more contained costs. Thus, this Monday, March 20, the cost of electricity experienced a rise of 26.8% to stand at 121.56 euros per megawatt hour according to data from the Iberian Energy Market Operator (OMIE).
In this 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 appliances that need the most electricity consume: the dryer, the dishwasher, the refrigerator, the washing machine and the television.
Greater contribution of renewable energy
The lowest electricity prices in this period are being possible thanks to the good weather conditions with the rain that filled the swamps in December and these days especially the strong wind throughout the peninsula. So far this year, most days the production of green energy has exceeded the rest of that generated in Spain, according to Red Eléctrica. Thus, this Friday it again accounted for 60% of the mix.
And it is that the growth in the number of wind farms in Spain is being noticed in a very positive way, 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. The data from said organization ensures that this increase in parks “made Spanish citizens save a total of more than 8,252 million euros on their electricity bills, 18%.”
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 today March 20
Cheapest hour:
14.00-15.00 h, con 97,25 euros/MWh.most expensive hour
19.00-20.00 h, con 165,47 euros/MWh.
With this new rise this Monday, it is recommended that the consumer be aware of the cheapest hours to start up household appliances. In this sense, the lowest is from two to three in the afternoon, with 97 euros/MWh, while the most expensive is from seven to eight in the afternoon, with 176 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 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.