The price of electricity experiences a sharp rise this Friday, November 4. The price of electricity registers a rise of no less than 29.6%. After the rises registered in the previous days, the cost of electricity is once again approaching the barrier of 200 euros per megawatt hour (MWh). The month of October ended with an average daily electricity market price of 127.21 euros/MWh, 36.4% lower than the average price of October last year and 9.8% lower than last September .
It is still important for families to know at what time to turn on energy-intensive appliances such as the oven, the washing machine or the dishwasher, which helps consumers to pay as little as possible, because today, November 4, the price of electricity in the wholesale market (‘pool’) amounts to 155.82 euros per MWh on average before applying compensation to gas companies, as announced today by the Iberian Energy Market Operator (OMIE).
However, prices remain contained compared to previous months, far from 200 euros per MWh, thanks to the beneficial influence of the price of natural gas, which remains below usual in recent months and leaves for the seventh consecutive day without effect the one known as Iberian cap. In the absence of the ‘Iberian exception’ mechanism to limit the price of gas for electricity generation, the price of electricity in Spain would be on average around 171.91 euros/MWh, which is 16 euros/MWh more than with compensation for regulated rate customers, who will thus pay 9.36% less on average.
These more contained prices in recent weeks defend the confluence of several factors: the lower demand for electricity -due to the high temperatures these days-, a greater contribution of renewable plants to the electrical ‘mix’ without the need to waste so much of gas combined cycle plants and the greater contribution of renewable energies, especially wind power.
Measures of the More Energy Security Plan
The Council of Ministers approved two weeks ago a royal decree with energy aid to families in which it includes the unification of the concept on the adjustment of gas in the electricity bill that must appear reflected; as well as the “net benefit” of the Iberian cap and what consumers would have paid for electricity if that mechanism did not exist. This new twist to the bills should come into force on December 1.
Several consumer associations had protested to the Ministry of Ecological Transition for this new concept, which in many cases was unknown. For this reason, the Ministry will define it “in a standardized way”, as explained by Minister Teresa Ribera, so that it appears on the receipt “without creative qualifications by the companies”, and which will refer to the “Iberian mechanism of the cost of Energy”.
In addition, the Government has approved the new regulated gas rate (TUR) for neighborhood communities that use community boilers until December 2023 and that will benefit 1.7 million households. This will mean a 50% discount with respect to the costs that they would pay without this rate. The Government has also launched an extension of the electricity social bonus, which allows a discount on the electricity bill for consumers considered vulnerable, within income limits, and provided they are covered by the regulated rate (PVPC) .
A more expensive price in off-peak hours
It is about solving the problem of the cost of the bill, which for families accumulates an average year-on-year rise of 70.3%, as reported in early October by Facua – Consumers in Action, in reference to the evolution of the regulated electricity rate . As an example, this organization puts an average user with a monthly consumption of 366 kilowatt hours (kWh) and a power of 4.4 kW, who has paid 1,259.14 euros so far this year, compared to the 739.56 euros he paid in the first six months of the previous year.
So far this year, the three most expensive bills in history in Spain have been registered: in March it reached 176.73 euros, in August it reached 158.30 euros and in July it reached 142.40 euros. The year-on-year rise in the last month was 34.3%, compared to 102.71 euros in September last year.
The Facua study also reveals that this past September the ‘valley’ period (from midnight to 8:00 a.m., Saturdays, Sundays and holidays) was on average more expensive than the ‘flat’ period (Monday to Friday from 8 a.m. to 10 a.m., 2:00 p.m. to 6:00 p.m. and 10:00 p.m.). Thus, the first had an average price of 33.12 cents per kWh and the second 32.56. The ‘peak’ hours stood at 38.45 cents.
Thus, in a context of continuous price increases for all types of products, consumers are forced to plan in detail when to carry out the domestic tasks that depend on their appliances. Thus, checking hourly hourly rates is a great help for households, since hourly energy savings improve our economy. Due to these constant increases in electricity prices, Spain supports the mandatory cut in electricity consumption, mainly during peak hours, one of the measures that are on the table of the European Commission.
Electricity price today Friday for hours
The wholesale market electricity rate directly influences the final cost that the consumer has to pay to start up their appliances from hour to hour.
Electricity rate today, Friday, November 4, hour by hour
cheapest time
from 3:00 p.m. to 4:00 p.m., with 112.44 euros/MWhmost expensive hour
from 8:00 p.m. to 9:00 p.m., with 217.74 euros/MWh
Thus, during this day the cheapest time to start up the electrical appliances with the highest energy consumption will be more profitable today for families, since it coincides with the period from three to four in the afternoon and not at dawn as in previous days, with a price of 112.44 euros/MWh. On the other hand, the most expensive hour will be from eight to nine at night, with 217.74 euros/MWh.
With these records in mind, this Friday, November 4, it is once again key to know what time the price of electricity is cheapest.
Iberian exception to contain the price of electricity
The Iberian mechanism, which entered into force on June 15, limits the price of gas for electricity generation to an average of 48.8 euros per MWh over a period of twelve months, thus covering the coming winter, a period in which energy prices are more expensive. Specifically, the ‘Iberian exception’ sets a path for natural gas for electricity generation at 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 measurement.
The prices of the ‘pool’ have a direct impact on the regulated rate -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 .
Therefore, one more day the price of electricity will vary significantly hour by hour throughout the day, depending on the tolls and charges established in each of the time slots of the electricity rate. In fact, the National Commission of Markets and Competition (CNMC) has verified that in 2021, in the framework of the upward spiral of energy, around 1.25 million people switched from the PVPC to a rate in the free market at a fixed price.
Appliances that consume the most
In all homes we have appliances with high electrical consumption. According to a study by the OCU, the household appliances that require the most energy are, in this order: refrigerator (662 kWh per year on average), freezer (563 kWh), television (263 kWh), washing machine (255 kWh), dryer (255 kWh) and dishwasher (246 kWh). As for the first two, essential for families, it is clear that there is not much room for savings since it is not possible to disconnect them.
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 prevent the door from being left open for too long. When choosing its location it is very important that the refrigerator is located away from the oven, a radiator or a sunny window or balcony.
Other tips that serve to save on electricity bills are not leaving mobile chargers or headphones connected for longer than necessary, turning off devices that are not being used, not leaving the TV on if you are not watching, etc.