The average price of electricity for tomorrow, Thursday, August 3, 2023, for regulated rate customers linked to the wholesale market, falls again. It will be 14.9% lower compared to today, Wednesday, and will stand at 64.76 euros per megawatt/hour (MWh).
In this way, the price of electricity continues to fall at the beginning of August and falls to its lowest level since July 23. In these first three days of the month, the average stands at 75.8 euros/MWh, compared to the 154.9 euros/MWh that increased in 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 so-called ‘Iberian exception’ lasted 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.
Extension of the ‘Iberian exception’
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 since last April, to conclude at 65 euros/MWh.
Currently, the mechanism has had no 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 the man have a reasonable price, not so dependent on the evolution of natural gas.
The cheapest and most expensive hours of Thursday, August 3
By time slots, the maximum price, of 95 euros/MWh, will be recorded between 9:00 p.m. and 11:00 p.m., while the minimum price will be between 2:00 p.m. and 3:00 p.m., with 23.51 euros/MWh, according to the provisional data from the Iberian Energy Market Operator (OMIE) collected by Europa Press.
From 00:00 to 01:00: 87.59 euros/MWh. From 01:00 to 02:00: 83.88 euros/MWh. From 02:00 to 03:00: 77.03 euros/MWh .From 03:00 to 04:00 hours: 77.9 euros/MWh.From 04:00 to 05:00 hours: 75.0 euros/MWh.From 05:00 to 06:00 hours: 80.01 euros/ MWh. From 06:00 to 07:00: 83.51 euros/MWh. From 07:00 to 08:00: 84.73 euros/MWh. From 08:00 to 09:00: 80.58 euros /MWh. From 09:00 to 10:00: 62.5 euros/MWh. From 10:00 a.m. to 11:00 a.m.: 52.0 euros/MWh. From 11:00 a.m. to 12:00 p.m.: 35.0 euros/MWh. From 12:00 p.m. to 1:00 p.m.: 35.0 euros/MWh From 1:00 p.m. to 2:00 p.m.: 35.0 euros/MWh. From 2:00 p.m. to 3:00 p.m.: 23.51 euros/MWh. MWh. From 4:00 p.m. to 5:00 p.m.: 25.11 euros/MWh. From 5:00 p.m. to 6:00 p.m.: 49.63 euros/MWh. From 6:00 p.m. to 7:00 p.m.: 51.99 euros /MWh. From 7:00 p.m. to 8:00 p.m.: 62.8 euros/MWh. From 8:00 p.m. to 9:00 p.m.: 89.0 euros/MWh. From 9:00 p.m. to 10:00 p.m.: 95.0 euros/MWh. From 10:00 p.m. to 11:00 p.m.: 95.0 euros/MWh. From 11:00 p.m. to 12:00 a.m.: 88.35 euros/MWh
Three appliances that raise your electricity bill
When we buy new electrical appliances, it is important to take into account three fundamental aspects: their energy efficiency, using them correctly (some even have saving modes) and making sure that their consumption adapts to our electricity bill. However, there are some appliances that, in general, consume more electricity than others.
The dishwasher, although it is not an appliance present in all homes, is one of those that requires the highest light consumption. According to OCU calculations, it can consume up to 246 kWh per year, which represents approximately 7% of total energy consumption and translates into up to 74 additional euros on the annual electricity bill. The same happens with the washing machine, which can consume up to 255 kWh per year, that is, an extra 77 euros on the annual bill. Lastly, and logically, the refrigerator, which has an average consumption of 662 kWh per year, which means an increase of approximately 199 euros in the annual rate in the case of the PVPC.
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 demand for energy 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.
