Electricity price tomorrow Monday, June 24 | The price of electricity will increase this Monday, San Juan Day: the most expensive hour will cost 117.33 euros/MWh.

The price of electricity will increase this Monday, June 24, San Juan Day. After a weekend in which several hours were free and even negative, the bill will suffer again this Monday: the cost of electricity will rise to 41.15 euros/MWh, almost double the price this Sunday (26.76 euros/MWh).

This Monday there will only be two hours when electricity will be free and there will be no negative costs like this Sunday. This will mean that consumers will need to know when it will be cheaper to turn on appliances.

Although there are areas with a price of 0 €/MWh, this is not reflected as such in the final bill since there are fixed costs for the consumer to pay tolls, charges and system adjustments. It should be remembered that this situation arose in the context of government changes after it increased VAT on electricity tariffs from 5% to the current 21% in early 2024.

Electricity cost per hour

The price of electricity on Monday, June 24, will fix its figure. maximum peak from 9 to 22 hours, when the payment will be 117.33 euros/MWh. In its turn, minimum It will take place from 15:00 to 17:00, and during this time electricity will be free, according to the Iberian Electricity Market Operator (OMIE).

New tariff

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

In April last year, negative prices were recorded for the first time in the history of the electricity market. and in March we have already seen one of the lowest average pool prices in history for the 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 euro/MWh. 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 home.

– 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.