The price of electricity, tomorrow August 6 for regulated rate customers linked to the wholesale market, will once again give pockets a breather and will mark the lowest price since April 16. The price of electricity will collapse tomorrow by 59.1%, to 28.15 euros per megawatt hour (MWh). This Sunday, there will be up to six hours at zero euros, that is, they will be completely free. In addition, there will be up to five for less than 5 euros, without a doubt to take into account to take advantage of and use the appliances that consume the most, such as the dishwasher or the washing machine.
In these first six days of the month, the electricity market average stands at 65.2 euros/MWh, compared to 144.1 euros/MWh that increased in the same period of August 2022.
To this average price of the ‘pool’ would be added the compensation to the gas companies, which must 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 are again at 0 euros/MWh, a situation that has been repeated since February 27.
The most expensive and cheapest hours of light on Sunday, August 6
The price of electricity will begin to fall during the early hours of Sunday and will not exceed 5 euros per MWh between 9:00 a.m. and 7:00 p.m., with several bands at zero euros: between 11:00 a.m. and 12:00 p.m., between 1:00 p.m. and 5:00 p.m. hours and between 18:00 and 19:00. From then on, the price of electricity will rise until reaching its maximum price between 10:00 p.m. and 11:00 p.m., with 81.25 euros per MWh.
Average price of electricity on Sunday, August 6: 28.15 euros megawatt/hour (MWh) Most expensive price of electricity on Sunday, August 6: 81.25 euros megawatt/hour: 0 euros megawatt/hour
Price of electricity tomorrow Sunday by time slots
From 00:00 to 01:00: 76 euros/MWh. From 01:00 to 02:00: 46.67 euros/MWh. From 02:00 to 03:00: 35.01 euros/MWh. 03:00 to 04:00 hours: 33.11 euros/MWh. From 04:00 to 05:00 hours: 32.61 euros/MWh. From 05:00 to 06:00 hours: 31.8 euros/MWh. From 06:00 to 07:00: 32.3 euros/MWh. From 07:00 to 08:00: 27.8 euros/MWh. From 08:00 to 09:00: 5 euros/MWh. 9:00 a.m. to 10:00 a.m.: 1.64 euros/MWh. From 10:00 a.m. to 11:00 a.m.: 1.64 euros/MWh. From 11:00 a.m. to 12:00 p.m.: 0 euros/MWh. From 12:00 p.m. to 1:00 p.m.: 1.64 euros/MWh. 1:00 p.m. to 2:00 p.m.: 0 euros/MWh. 2:00 p.m. to 3:00 p.m.: 0 euros/MWh. 3:00 p.m. to 4:00 p.m.: 0 euros/MWh. 4:00 p.m. to 5:00 p.m. :00 hours: 0 euros/MWh. From 5:00 p.m. to 6:00 p.m.: 1.64 euros/MWh. From 6:00 p.m. to 7:00 p.m.: 0 euros/MWh. From 7:00 p.m. to 8:00 p.m. : 33.41 euros/MWh. From 8:00 p.m. to 9:00 p.m.: 77.06 euros/MWh. From 9:00 p.m. to 10:00 p.m.: 80.5 euros/MWh. From 10:00 p.m. to 11:00 p.m.: 81.25 euros/MWh .From 11:00 p.m. to 12:00 a.m.: 76.5 euros/MWh.
Factors influencing price escalation
The rise in prices in most European countries is attributed to various factors, including the rise in gas prices on 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. In addition, 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 hourly period?
Electricity bill prices are flexible and linked to the wholesale electricity market. For this reason, the price of electricity in each hourly period is determined based on the energy demand at that time, which gives rise to a constant variation in the cost of electricity throughout the day.
For example, during periods of high demand due to extreme cold temperatures for heating or extreme heat for air conditioners, prices tend to rise. In addition, it is important to consider that the expenses associated with adjustment services, charges, capacity payments, marketing, expenses and the price for interruptibility, among others, can vary the price from one hour to another. With the entry into force in January 2024 of the new calculation methodology for the new regulated electricity tariff, 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, after the agreement reached by Spain and Portugal with the European Commission. Thus, it is extended for seven months, until the end of this year, and it is not excluded that it could be extended for a longer time if said framework is also extended.
Specifically, the agreement not only represents an extension of the Iberian exception that has already been applied, but also implies some adjustments to accommodate it, such as the price reference, which until now increased by five euros per month, and will now be smoother.
In the original agreement, the aforementioned reference price for gas had an average value of 48.8 euros/MWh: it was 40 euros/MWh for six months, rising 5 euros/MWh every month thereafter. Now, it will increase by 1.1 euros/MWh from last April, to conclude at 65 euros/MWh.
Currently, the Mechanism has had no effect on the Marginal Matching Processes in the Wholesale Markets at the end of February, due to the drop in the price of Natu Natural Gas below the thresholds set for its application, but, if necessary, the extension It will allow maintaining a reasonable price, not so dependent on the evolution of natural gas.
