Electricity price TODAY and TOMORROW | Electricity prices will plummet this Sunday with new tariff: up to eight hours free

Good news for consumers in Spain. Electricity prices will drop this Sunday, May 19th. He had already experienced a decline in recent days. In fact, the average price on Saturday was €32.99 per megawatt-hour, with up to five hours completely free. However, it continues to decline. On Sunday the average price will be 26.60 euros/MWh. Additionally, the number of hours in which it will be 0 or negative is eight.

However, consumers should note that these zero euro hours are not carried over as such to the final bill for the month. For regulated customers, there are a number of fixed costs for tolls, fees and system adjustments. It should be remembered that all this is happening against the background of constant changes in electricity tariffs after the VAT increase at the beginning of the year from 5% to 21%.

Electricity cost per hour

To save as much as possible on your energy bills, we must analyze the price dynamics per hour. This way we will know better when it reaches its lowest point and can take advantage of this to turn on our appliances such as washing machines or dishwashers.

This Sunday the cost of energy will reach its maximum peak from 00:00 to 201:00, when it will be 58.15 euros per megawatt hour. In this case, the minimum price will be fixed for several hours, namely from 11:00 to 15:00, then it will be 0 euros/MWh, according to the Iberian Electricity Market Operator (OMIE).

New tariff

In April last year, negative prices were recorded for the first time in the history of the electricity market. This fact was repeated several times during the month, mainly due to a chain of storms that caused heavy rain after Easter, but also due to winds that allowed renewable energy sources to operate at full capacity. Moreover, in March we already observed one of the lowest average monthly pool prices in history: 20 EUR/MWh, half the average price recorded in February and 77.5% lower than in March 2023. when it was 89.6. euro/MWh.

VAT 21%

In addition, in February, after recording an average below 45 EUR/MWh (the ceiling set by the Royal Decree of Urgent Measures), the electricity sector temporarily reinstated its value added tax (VAT) of 21% from March, a figure that continues to be maintained.

The last Council of Ministers last year approved an increase in the VAT rate on electricity from 5% to 10% and maintaining this rate until the end of 2024, subject to maintaining MWh prices on the wholesale market. high, above this 45 euro/MWh.

In particular, VAT will become 21% if the wholesale price is below this level in the calendar month preceding the last day of invoice. That is, all bills that include consumption for at least one day in March will have VAT of 21%. Only households receiving a social bonus are exempt from this increase, as their VAT will remain at 10% through 2024.

Best rate

Now, with electricity prices almost at zero, 8.5 million PVPC tariff users (3% of the total) benefit from an almost ridiculous electricity cost of just four or five eurocents per kWh by adding fixed costs to the price. 0 euro generation. However, those who operate in the free market pay at least ten cents per kW consumed.

Calculation method

In addition, the “pool” does not fully reflect the final amount of the electricity price for the consumer subject to a regulated tariff, since with the introduction in 2024 a new method of calculating PVPC was adopted, which includes a basket of prices in the medium and long term to avoid large fluctuations without losing short-term price targets that promote savings and efficient consumption.

Thus, the share of the pool price link will be gradually reduced to include links to futures markets, so that they will be 25% in 2024, 40% in 2025 and 55% starting in 2026.

To reduce your consumption and lower your energy bills, you can follow these tips:

Appliances

To reduce the consumption of household appliances, it is advisable to:

– Turn off electrical appliances when you are away from home for a long period (vacation). Especially the fridge freezer which consumes up to 30% of the total consumption of the house.

– Don’t leave them on standby as they continue to spend even when they are not consuming.

– Try to use a sundial to dry your clothes.

Hot water

It is always recommended:

– Use hot water wisely. It is advisable to ensure that the tap is never left open more than necessary.

– Overall water temperature between 30°C and 35°C It might be enough.

Lightning

It is advisable:

– Gradually replace incandescent and halogen lamps with LED lamps, as they consume ten times less energy than incandescent lamps and have a service life ten times longer, saving up to 85% of energy.

– Make the most of natural light by turning off lights in naturally lit areas and anywhere there are open spaces or glass walls that encourage passive viewing.