Electricity price TODAY and TOMORROW: cheapest hours | Electricity prices will skyrocket this Monday with a new tariff: no free hours

Bad news for consumers. After several days when the price of electricity fell, this Monday, May 20, it increased sharply. The average price for regulated tariff customers will be €32.72 per megawatt hour. This represents a difference of more than 6 euros compared to the previous day. Another very important thing is that this Sunday there were up to eight free hours, but on Monday there are none.

It is true that for a few hours the price will be below one euro, but in no case will it reach 0. However, it is worth remembering that these negative or very low prices are not literally transferred as zero euros on the invoice, since There are fixed costs for the electricity consumer to pay fees, charges, and system adjustments. All this is happening against the backdrop of the fact that at the beginning of the year the government introduced a change in the VAT rate from 5% to 21%.

Electricity cost per hour

If we want to protect ourselves from this increase and continue to save as much as possible on our bills, we must pay close attention to hourly dynamics. In this way, we will know what time of day is most beneficial to turn on our equipment, and what time should be avoided.

This Monday, May 20, the highest price will be €59.31/MWh from 21:00 to 22:00. On the other hand, according to the Iberian Electricity Market Operator (OMIE), the lowest price will be 0.54 euros/MWh from 15:00 to 16:00.

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 these 45 euros/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% throughout 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 may 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.