Electricity prices drop today

It appears that the heat wave that has brought extreme temperatures to Spain in recent days is dissipating and providing some respite. There were days when it was nearly impossible to disentangle oneself from the fan or air conditioning. The conclusion of this period of increasing temperatures will also be felt in the pockets of consumers, as it is accompanied by a decrease in electricity prices.

In the summer, we pay particular attention to the clock before operating our appliances, as the timing of the air conditioning can have a substantial impact on the monthly bill.

According to data from the Iberian Energy Market Operator, the price of electricity will decrease by 19.61% to 77.72 euros/MWh per megawatt hour today Tuesday, August 19, from 96.68 euros the previous day.

It is important to note that the new PVPC calculation method, which was implemented in 2023, includes a medium- and long-term price index to prevent abrupt fluctuations, while simultaneously preserving short-term price references that promote efficient consumption and savings. Consequently, the electricity account does not indicate hours that are either zero euros or negative.

Electricity rates per hour

The electricity price will be at its lowest on Tuesday, August 19th, from 1:00 PM to 2:00 PM, with a rate of €29.14/MWh. The price will reach €106.85/MWh between 9:00 PM and 10:00 PM, which is the highest price. Nevertheless, it is crucial to comprehend the fluctuation of electricity costs throughout the day in order to determine the optimal periods to operate your appliances.

Price of electricity per hour

The pool does not accurately represent the final electricity price for a consumer on the regulated tariff, as a new PVPC calculation method was implemented in 2024. This method incorporates a medium- and long-term price basket to prevent sharp fluctuations, while maintaining short-term price references that promote efficient consumption and savings.

In this manner, the proportion of linkage to the pool price will be gradually reduced to incorporate futures market references. These accounted for 25% of the total in 2024 and 40% in 2025. This futures market reference will increase to 55% beginning in 2026.

Method of Calculation

The pool does not accurately represent the final electricity price for a consumer on the regulated tariff, as a new PVPC calculation method was implemented in 2024. This method incorporates a medium- and long-term price basket to prevent sharp fluctuations, while maintaining short-term price references that promote efficient consumption and savings.

In order to integrate futures market references, the proportion of pool price linkage will be gradually reduced. These percentages will increase to 25% in 2024, 40% in 2025, and 55% beginning in 2026.

Tips to save on your electricity bill

To reduce consumption and lower your electricity bill, you can follow these tips:

Household appliances

To reduce the consumption of your household appliances, it is advisable to:

• Unplug appliances when you’re away from home for a long period (vacation). Especially the refrigerator-freezer , which consumes up to 30% of the household’s total energy consumption.
• Avoid leaving them on standby as they continue to consume even if they are not consuming.
• Try to take advantage of the hours of sunlight to dry clothes.

Hot water

It would be advisable to always:

• Use hot water wisely. It’s a good idea to make sure you never leave a tap running too long.
• Generally speaking, a water temperature between 30ºC and 35ºC may be sufficient.

Lightning

It is recommended:

• Gradually replace incandescent and halogen light bulbs with LED technology, as it uses ten times less power than incandescent bulbs and has a ten times longer lifespan, saving up to 85% of energy.
• Make the most of natural light by turning off the lights in naturally lit areas and whenever there are open spaces or glass walls that contribute to passive surveillance.