Thursday, March 9, 2023
The best news for consumers arrives unexpectedly with a drastic drop in the price of electricity today, of no less than 42%. The cumulative figure for the last four days represents a cut in half in the electricity bill, which for this Friday, March 19, stands at 42.71 euros per megawatt hour, almost one hundred euros less than what customers paid regulated tariff this past Monday, according to the data communicated by the Iberian Energy Market Operator (OMIE).
This cost also represents a notable reduction in the price of electricity compared to a year ago, since on this same day 369.75 euros/MWh were paid. The average cost so far this month is 119.7 euros/MWh, eleven less than the average for February.
In any case, we continue in a context of high prices, energy saving experts advise families to ensure that the appliances that are not used remain unused, take short showers and, among other saving measures, pay attention to when to start up 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 are being possible thanks to the good weather conditions with abundant rains that filled the swamps, in addition to the abundance of wind throughout the peninsula. Thus, according to Red Eléctrica, most days so far this year the production of green energy has exceeded the rest of that generated in Spain. Thus, this Thursday has accounted for 65% of the mix.
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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 10
Cheapest hours:
03:00-04:00 and 15:00-17:00, with 4.16 euros/MWh.most expensive hour
20.00-21.00 h, con 124,22 euros/MWh.
The cheapest hours to start up household appliances with the highest energy consumption -provided that the consumer can choose- are the periods from three to four in the morning and from three to five in the afternoon, with a cost of only 4 euros/MWh . On the other hand, the most expensive is the section from eight to nine at night, with 124.22 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.
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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.