By Chris King •
Updated: 30 Aug 2023 • 18:45
Image of an electricity grid power sub-station.
Credit: MadFish Concepts/Shutterstock.com
On Thursday, August 31, the average price of electricity for regulated rate customers linked to the wholesale market in Spain will rise by two per cent compared to today, Wednesday 30.
Specifically, the price will stand at €110.57/MWh.
According to the operator of the Iberian Energy Market (OMIE), in the auction, the cost of energy in the wholesale market – the so-called ‘pool’ – will stand at €110.57/MWh tomorrow.
The minimum price, of €88/MWh, will occur between the hours of 3 pm and 4 pm, while the maximum price will be recorded between 8 pm and 9 pm, at €136.66/MWh.
Hourly electricity prices on Thursday 31
So far in August, the average wholesale market price of electricity stands at €82.90/MWh. That is compared to the €154.89/MWh at which it stood in the same month of last year, according to lainformacion.com.
Sources from the employers’ association Aelec – made up of the electric companies Iberdrola, Endesa and EDP Spain – pointed out that this increase in the price of electricity in the wholesale market was, fundamentally, a direct consequence of the increase in gas prices by more than 40 per cent during the current month of August.
However, after the evolution of the retail market in 2022, they highlighted that ‘a vast majority of customers are covered by fixed price rates or flat rates’. Specifically, 70 per cent of customers have contracts in the free market.
They added that the volatility in electricity prices due to the rise in gas and, to a lesser extent, CO2, as well as short-term aspects such as increases in average temperatures, ‘does not affect the majority of customers with rates fixed price or flat rates’.
Despite this increase, they insisted that prices: ‘remain far from those reached last summer when the Russian invasion of Ukraine caused prices to reach their all-time high’.
On Tuesday, March 28, Spain’s Council of Ministers approved the extension of the Iberian exception until December 31, after the agreement was reached by Spain and Portugal with the European Commission.
It is not excluded that the deal could be extended for a longer time if the said framework is also extended.
In a meeting of the Council of Ministers on Tuesday, June 13, the government spokesperson, Isabel Rodríguez, confirmed the approval of a new system for calculating the regulated tariff.
This will be known as the Precio de Venta al Pequeño Consumidor (PVPC). It will come into effect on 1 January 2024.
The new regulated tariff will take into account various corrective factors to reflect the daily market price, establishing more stable prices three months and one year in the future.
This will make it possible to establish a price that can work in the medium and long term, avoiding drastic fluctuations. However, short-term price references will also be maintained to encourage savings and efficient consumption.
With this new calculation, it will no longer be linked to the daily electricity market and will start to be calculated on the basis of long-term pricing. As the Minister for Territorial Policy pointed out: ‘Consumers should be reassured because they do not have to do anything’.
Using an appliance correctly can help to save money on the electricity bill. Many items nowadays are equipped with energy-saving modes which can assist homeowners in saving money.
Some household appliances consume more electricity than others, in general. Although not all homes have a dishwasher, they can be one of the worst protagonists.
According to calculations from the Spanish Consumers Organisation, (OCU), this appliance can consume up to 246 kWh per year, which represents approximately 7 per cent of total energy consumption and translates into up to approximately €74 extra on the annual electricity bill.
Washing machines can also consume up to 255 kWh per year, that is, an extra €77 on the annual bill. Finally, the refrigerator has an average consumption of 662 kWh per year, which means an increase of approximately €199 in the annual rate in the case of the PVPC.
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Originally from Wales, Chris spent years on the Costa del Sol before moving to the Algarve where he is a web reporter for The Euro Weekly News covering international and Spanish national news.
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