The price of electricity today gives a little respite: check the cheapest hours

by time news

Monday, March 20, 2023

The price of electricity today falls slightly after the significant rise on Monday (26.8%). This Tuesday the cost of electricity experiences a small decrease to reach 119.34 euros per megawatt hour according to the data communicated by the Iberian Energy Market Operator (OMIE). Given that we continue in a context of high prices in which it is foreseeable that they will rise again, 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 household appliances that consume the most electricity: the dryer, the dishwasher, the refrigerator, the washing machine and the television.

The average price of electricity in the monthly accumulated until March 21 stands at 101.67 euros/MWh, that is, about 32 euros less than the 133.22 euros/MWh of the same period in February.

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 swamps 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 El├ęctrica.

The growth in the number of wind farms in Spain is being noted very positively, 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 highlighted 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 21

  • Cheapest hours:
    15.00-16.00 h, con 99 euros/MWh.

  • most expensive hour
    07.00-08.00 h, con 145,66 euros/MWh.

In a general day with somewhat lower prices than this Monday, the minimum price, of 99 euros/MWh, will be given between 3:00 p.m. and 4:00 p.m., while the maximum price will be recorded between 7:00 a.m. and 8:00 a.m., when it will be of 145.66 euros/MWh.

Advantages of the Iberian exception

The third vice president and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, boasted in the Congress of Deputies of the virtues of the Iberian mechanism, with which consumers have been able to save around 30% on the electricity bill light, as explained.

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 6┬║, 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.

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