The price of electricity will rise this Friday, September 15, so consumers must carefully select the time at which they use their appliances, such as the washing machine, so as not to have a scare when the electricity bill arrives. leaving a price that does not fall below the barrier of 100 euros per megawatt hour (MWh). To avoid an increase in the electricity bill this Friday, there will be many regulated tariff customers linked to the wholesale market who will look for the most expensive and cheapest hours of electricity to help save at the height of September and try to put the washing machine on those periods. For regulated rate customers linked to the wholesale market, they will increase by 8.38% compared to this Tuesday, up to 115.38 euros per megawatt hour (MWh).
In these first fifteen days of the month, the average of the electricity market stands at 103.12 euros/MWh, compared to the 156.23 euros/MWh that the ‘pool’ price registered in the same period of September 2022.
To this average price of the ‘pool’ would be added the compensation to the gas operators, which has to be paid by the consumers who are beneficiaries of the measure, the consumers of the regulated tariff (PVPC) or those who, despite being in the free market , have an indexed rate, but which is once again at 0 euros/MWh, a situation that has been repeated since last February 27.
By time slots, the maximum price, of 130.5 euros/MWh, will be recorded in two peaks, one between 8:00 p.m. and 10:00 p.m., while the minimum price will occur between 3:00 p.m. and 4:00 p.m., with 94.7 5 euros/MWh, according to provisional data from the Iberian Energy Market Operator (OMIE) collected by Europa Press.
The most expensive and cheapest hours of electricity on Friday, September 15
From 00:00 to 01:00 hours: 119.32 euros/MWhFrom 01:00 to 02:00 hours: 109.76 euros/MWhFrom 02:00 to 03:00 hours: 102.97 euros/MWh From 03:00 to 04:00 hours: 102.59 euros/MWhFrom 04:00 to 05:00 hours: 102.78 euros/MWhFrom 05:00 to 06:00 hours: 103.42 euros/ MWhFrom 06:00 to 07:00 hours: 122.25 euros /MWhFrom 07:00 to 08:00 hours: 126.23 euros/MWhFrom 08:00 to 09:00 hours: 125.07 euros/MWh From 09:00 to 10:00 hours: 124.19 euros/MWhFrom 10:00 to 11:00 hours: 124.94 euros/MWhFrom 11:00 to 12:00 hours: 122.69 euros/ MWhFrom 12:00 to 13:00 hours: 121.22 euros/MWhFrom 13:00 to 14:00 hours: 109.18 euros/MWhFrom 14:00 to 15:00 hours: 99.22 euros /MWhFrom 3:00 p.m. to 4:00 p.m.: 94.75 euros/MWhFrom 4:00 p.m. to 5:00 p.m.: 96.16 euros /MWhFrom 5:00 p.m. to 6:00 p.m.: 108.34 euros/MWhFrom 6:00 p.m. to 7:00 p.m.: 119.09 euros/MWhFrom 7:00 p.m. to 8:00 p.m.: 124 euros/MWhFrom 8:00 p.m. to 9:00 p.m.: 130.4 euros /MWhFrom 9:00 p.m. to 10:00 p.m.: 130.45 euros/MWhFrom 10:00 p.m. to 11:00 p.m.: 124.13 euros/MWhFrom 11:00 p.m. to 12:00 p.m.: 123 euros/ MWh
Factors influencing price escalation
The rise in prices in most European countries is attributed to various factors, including the increase in the price of gas in international markets. This fuel is used in combined cycle plants and has a significant impact on determining market prices during most hours of the day. Furthermore, the increase in the value of carbon dioxide (CO2) emission rights also contributes to this situation.
Why does the price of electricity change in each time slot?
Electricity bill prices are flexible and linked to the wholesale electricity market. For this reason, the price of electricity in each time period is determined based on the energy demand at that moment, which gives rise to a constant variation in the cost of electricity throughout the day.
Electricity bill prices are flexible and linked to the wholesale electricity market. For this reason, the price of electricity in each time period is determined based on the energy demand at that moment, which gives rise to a constant variation in the cost of electricity throughout the day.
For example, during periods of high demand due to more extreme cold temperatures for heating or extreme heat for air conditioners, prices tend to rise. Additionally, it is important to consider that expenses associated with adjustment services, charges, capacity payments, marketing, weighing, and interruptibility pricing, among others, may vary in price from hour to hour. With the entry into force in January 2024 of the new methodology for calculating the new regulated electricity rate, it is expected to give more stability to the electricity market.
The Iberian exception
The so-called ‘Iberian exception’ has been extended until December 31, following the agreement reached by Spain and Portugal with the European Commission. Thus, it is extended by seven months, until the end of this year, and it is not excluded that it could be extended longer if said framework is also extended.
Specifically, the agreement not only represents an extension of the Iberian exception that was already applied, but also involves some adjustments to accommodate it, such as the price reference, which until now was increased by five euros per month, and will now be softer.
In the original agreement, the reference price cited for gas had an average value of 48.8 euros/MWh: it was 40 euros/MWh for six months, rising by 5 euros/MWh each month thereafter. Now, it will increase by 1.1 euros/MWh since last April, to conclude at 65 euros/MWh.
Currently, the mechanism has not had any effect on the marginal matching processes in the wholesale markets since the end of February, due to the drop in the price of natural gas below the thresholds set for its application, but, if necessary, the extension will allow Maintain a reasonable price, not so dependent on the evolution of natural gas.
