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The price of pellets shoots up and doubles the cost of the bill in winter

Date: March 27, 2023 Time: 03:33:12

In Spain there are some 500,000 independent homes that are heated with biomass stoves or boilers. It is one of the most economical heating systems, but in recent years it has ceased to be a bargain. As its use became popular, especially since the pandemic and with the increase in the price of gas, demand has been felt in prices: pellets and olive stones already cost more than double than in 2017. Only in the fall of 2022 , they became more expensive by 67 and 61% respectively.

According to a report prepared by the OCU, a 15-kilo bag of pellets has gone from costing three to eight euros in six years. “At the end of 2017 you were able to buy a 15 kg bag of pellets for about three euros, at the end of December (2022) it was around 8 euros on average; and in some cases it has risen to 10 euros per bag,” they indicate. .

The Government responded to this situation with a drop in the VAT on pellets from 21% to 5% from October 1, but then the OCU detected “significant price increases during the 15 days prior to the application of the reduction”. with cases that reach up to a 24% increase in the same product, thus annulling the tax reduction.

How much will a house with pellets heat?

Taking into account the prices quoted, the cost per kilo of pellets has gone from 20 cents in 2017 to 53 cents on average in January 2023. In addition, an expense of between one and two kilos of pellets per hour is estimated, depending on the power of the stove, the temperature to be reached and the meters to be heated, among other variables.

In this way, if the stove is on in the winter months for about 6 hours a day, consumption in 2023 varies between 3.18 and 6.36 euros. A high figure if we compare it with what we paid to keep it for the same time in 2017, between 1.20 and 2.40 euros. The differences may seem small, but if we do the monthly calculation, we go from an expense that families can afford, between 36 and 72 euros, to a much higher one, ranging from 95 to 190 and is more similar to the consumption of other systems.

It must be taken into account that there are different types of pellet stoves, but the consumption of all of them is very similar to that mentioned, and their performance is also similar. The OCU estimates the average cost of pellets each year at around 545 euros, to heat a house of 90 square meters.

It is still more affordable than diesel, electricity and gas

According to the Spanish Biomass Society (Avebiom)

For example, the cost of diesel in six hours is about 12 euros per day, taking into account the price of 1.30 euros per liter of diesel for heating. The average consumption of a common diesel boiler of 20,000 Kcal/h is 9.52 liters at that time.

If we use electric radiators, the electricity bill skyrockets. To heat a room, between 80 W and 100 W are needed per square meter. According to preciogas.com, the price ranges from €856.75/year for a 50-square-meter house to €2,146.63/year for a 150-square-meter house.

And in the case of the most used system, gas, there will be a lot of the rate that we have contracted. Taking into account the 7,921 kWh per year that are consumed in a home, according to the IDAE, with a rate from a retailer we would spend more than 1,500 euros per year. And with the TUR 2, about 475 euros per year. To this should be added about 100 euros per year in the fixed price, the tax on natural gas, the rental of measurement equipment and the 5% VAT (at least until the end of 2023), so the price final round between 600 and 2,000 euros, approximately, depending on the rate and consumption.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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