Price of LIGHT for TOMORROW | The price of electricity will change this Wednesday, October 23, according to a new tariff: the most expensive hours for connecting equipment

Bad news for consumers. As a result, the price of electricity is rising Wednesday, October 23. It will increase by 8.80% (7.05 EUR/MWh). Thus, the average price will be equal to 87.23 EUR/MWhThis is evidenced by data from the Iberian Energy Market Operator (OMIE). This confirms the upward trend in the regulated rate in recent days. However, the situation is better than a year ago. On October 23, 2023, electricity prices increased by 29.71%. On that day, the average price was 124.12 EUR/MWh. This month, the daily price on the Spanish wholesale market was 66.06 euros per megawatt hour (MWh). This is 9.03% less than in September.

According to Grupo ASE, wind power in the first half of the month was 147% higher than a year ago, driven by persistent storms since the start of the year. Thus, this technology in September exceeded the average for the last five years by 17.8%, and in October it was already 17.4% above this average.

If we want to save as much as possible on our bills, we need to know how the price of electricity changes throughout the day. If we know what price each time slot has, we can use it to turn on the fixtures. This way we optimize its performance as much as possible.

This Wednesday, October 23, the maximum price will be in effect from 20:00 to 21:00 and will be 155.8 euros/MWh. On the other hand, the lowest price will be observed from 14:00 to 15:00 and will be 56.08 euros/MWh. Unlike other days, there will be no free hours. Find out the price of electricity by hour on Wednesday:

VAT changes

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 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 the social bonus are exempt from this increase, as their VAT will remain at 10% throughout 2024.

Calculation method

It should be remembered that the “pool” does not quite represent the final amount of the electricity price for the consumer subject to the regulated tariff, since with the advent of 2024, a new method of calculating PVPC has been adopted, which includes a basket of medium and long-term prices to avoid large fluctuations, without losing the short-term benchmark prices 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.

Pool

It should be remembered that the “pool” does not quite represent the final amount in the price of electricity for the consumer subject to a regulated tariff, since with the introduction in 2024 of a new method of calculating PVPC, which includes a basket of medium and long-term prices 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:

Household 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 may be enough.

Lightning

Recommended:

– 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.