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The price of electricity today in the wholesale market rises strongly after four days at minimums. Check the cost of electricity hour by hour for this Wednesday, January 18
Strong rise in energy costs after four days of declines. The price of electricity is rising strongly today, although it remains far from the maximum levels it reached up to a month ago. After the accumulated decreases so far this week this Wednesday, January 18, the rise is 366% to stand at 20.88 euros per megawatt hour (MWh), as published today by the Iberian Energy Market Operator (OMIE). ). Even so, it is a much lower price than a year ago since between January 1 and 17 families paid an average of 192 euros/MWh for the 68.52 of these 17 days that we have in 2023.
After a year-end with the lowest prices in recent months, in January we therefore continue with the same trend, although experts always recommend that consumers pay attention to what are the most advantageous hours to start up household appliances with the highest energy consumption. Energy saving specialists advise families to pay attention to the five household appliances that consume the most electricity: the dryer, the dishwasher, the refrigerator, the washing machine and the television.
In this sense, a study prepared by the firm EcoFlow reveals that one in four consumers has the electricity bill as their main concern in the face of price increases in January, already marked by general inflation. 83% of those surveyed state that they have already modified some consumption habits at home and the main one is optimizing the use of electrical appliances (71%), followed by reducing the use of heating (67%) and giving up leisure activities (39%).
Greater contribution of renewable energies
These more contained prices come from the favorable weather conditions in Spain with less cold than in the rest of Europe and rains that have filled the swamps, added to the abundance of wind throughout the peninsula. If last week renewable energies accounted for 55-58% of that generated in Spain, this Monday it reached 69% and on Tuesday 70%, according to Red Eléctrica. In the last few hours, the wind is the factor that is contributing the most to the generation of renewable energy.
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 war in Ukraine.
Another factor that is helping these savings is the ‘Iberian exception’ mechanism that establishes a ceiling on the price of gas for electricity generation. Without it, today, Friday, the price of electricity in Spain would be an average of 38.1 euros/MWh, which is 17.22 euros/MWh more than with the compensation for customers of the regulated rate, who will thus pay a 45.2% less than average.
Saving looking at Europe
Precisely Spain has proposed this Tuesday to Brussels to limit prices to nuclear and hydraulic energy to stabilize the price of light. The idea of the Ministry for the Ecological Transition consists of applying a regulated generation price to said energies so that the income received by these plants for generating electricity is previously fixed, based on parameters that cover costs but avoid extraordinary income.
Teresa Ribera, Third Vice President of the Government and Minister of Ecological Transition and for the Demographic Challenge, explained this Monday that she will ask Brussels to extend said ‘Iberian exception’ at least until the end of 2024, with a limit similar to the current one, of between 45 and 50 euros per megawatt hour (MWh). In Spain, as she has pointed out, “it has been possible to reduce the volatility in the price of electricity and make it partly cheaper” with some of the measures adopted, such as tax cuts and the ‘Iberian solution’.
The countries of the European Union agreed in December to apply a ceiling of 180 euros per megawatt hour to imported gas. The mechanism will come into operation on February 1 and will be activated automatically as soon as the three set requirements are met: a price above 180 euros/MWh for three consecutive days and with a difference of 35 euros compared to other international markets. Once activated, the mechanism will apply for 20 days.
The Iberian mechanism impacts the price of gas used to produce electricity in combined cycle plants. In other words, initially the cap on European gas will not have an impact on the Spanish market, according to Jose María Camarero.
Price of electricity today by the hour
The wholesale market electricity rate directly influences the final cost that the consumer has to pay to start up their household appliances hour by hour, hence the price of electricity is established at 0.079 euros/kWh. once the corresponding charges and tolls have been added:
Price of light today Wednesday January 18, hour by hour
cheapest hours
from 01:00 to 02:00, with 0.02 euros/kWhmost expensive hour
from 8:00 p.m. to 9:00 p.m., with 0.238 euros/kWh
A day with ups and downs for consumers, who will not be able to take advantage of the cheapest hours to put on electrical appliances, as it coincides with the period from one to two in the morning, with the price of electricity practically free at 0.02 euros /kWh. On the other hand, the most expensive time is from eight to nine at night, with a cost to which we are more accustomed: 0.238 euros/kWh.
The effectiveness 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.
The average price of electricity for regulated rate customers linked to the wholesale market was 212 euros/Mwh in 2022 until June 15 (before the entry into force of the gas cap), while in the rest of the year ( taking into account the calculation with this exceptional mechanism) the average price was 208 euros/MWh. If this measure had not existed, the average price of electricity between June 15 and December 31, 2022 would have been 256 euros/MWh, that is, 23% higher than what consumers have paid.
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.
One of the keys to saving is to use the eco mode of devices such as the dishwasher
Tips for household appliances that consume the most
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.