Electricity Price Tomorrow, Monday, July 8 | Electricity prices soar on Monday, July 8, by 110.86%, taking into account the new tariff: an exorbitant five hours to connect devices.

The price of electricity on Monday, July 8, brought bad news to Spanish consumers, rising to 73.19 euros/MWh, up 110.86% from last Sunday. In addition, electricity bids farewell to negative time slots or zero euros for a moment, leaving a series of time slots that regulated tariff consumers must avoid by breaking the 100 euro barrier.

It should be remembered that this is happening in a period of multiple changes in the VAT tariff for electricity. Since the beginning of the year, the price of electricity has increased from 5% to 21% and returned to the current 10% after the average price of electricity on the wholesale market in Spain last June exceeded the average price of 56 euros, the second highest figure this year.

Cost of electricity per hour

The price of electricity will be fixed on Monday, July 8. maximum peak from 21:00 to 22:00, when the payment will be made at a price of 115.15 euros/MWh. Also note the periods “before” and “after” from 20:00 to 21:00 and from 22:00 to 23:00, when 100 euros/MWh will be exceeded, as well as 8:00. In turn, minimum

According to the Iberian Electricity Market Operator (OMIE), it will take place from 2:00 pm to 3:00 pm, during which time the price will be 31.98 euros/MWh.

New tariff

In May, the average bill for a household with a PVPC tariff was 54 euros (48.85 euros in April). This increase comes after April, with completely unknown prices on the wholesale market (13.3 euros/MWh), with moments of even negative prices. Despite this increase, VAT remains at its usual level of 21%, since the VAT reduction to 10% only applies if the wholesale price exceeds 45 euros/MWh.

In April last year, negative prices were recorded for the first time in the history of the electricity market, and in March we already saw one of the lowest average pool prices in history for a month: 20 EUR/MWh, which is half the average price recorded in February and 77.5% lower than in March 2023, when it was 89.6 EUR/MWh.

VAT 21%

In addition, in February, after recording an average below 45 euros/MWh (the ceiling set by the Royal Decree on urgent measures), electricity temporarily reinstated its Value Added Tax (VAT) of 21%, a rate that continues to be maintained.

The latest Council of Ministers last year approved an increase in the VAT rate on electricity from 5% to 10% and the maintenance of this rate until the end of 2024, provided that the prices per MWh on the wholesale market remain high, above these 45 euros/MWh.

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

Best rate

Now that the price of electricity generation is almost zero, the 8.5 million users of PVPC tariffs (3% of the total) benefit from an almost ridiculous electricity cost of only four or five euro cents per kWh, by adding fixed costs to the price. 0 euros of generation. However, those operating in the free market pay at least ten cents per kW consumed.

Calculation method

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

Thus, the share of the pool price link will gradually be 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 an extended period (vacation). Especially a fridge freezer which consumes up to 30% of the total consumption of the house.

– Don’t leave them in standby mode as they continue to spend even if they don’t consume.

– Try to use the 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 longer 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 maximum use of natural light by turning off lights in naturally lit areas and anywhere there are open spaces or glass walls that encourage passive viewing.