Tuesday, March 7, 2023, 8:16 p.m.
New decrease today in the price of electricity, again 18% that will alleviate electricity bills in homes and companies. This is the second day in a row with a very similar drop that lowers the average cost for regulated rate customers to 98.93 euros per megawatt hour. It is a decrease of about 50 euros in only two days.
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 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 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 of green energy production has exceeded the rest of that generated in Spain and even in February renewables have increased their production by “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, 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 8
Cheapest hours:
15.00-16.00 h, con 60,2 euros/MWh.most expensive hour
20.00-21.00 h, con 140 euros/MWh.
Thus, today, Wednesday, the cheapest time to start up electrical appliances is once again from three to four in the afternoon, with 60 euros/MWh, while the most expensive is again from eight to nine at night, with 140 euros/ MWh.
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.
Related News
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 hour by hour throughout the day again, depending on the tolls and charges established in each of the time slots of the electricity rate.
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.