Summer is the one season in which it is crucial to be particularly cognisant of the cost of electricity. It is common for the account to increase at the end of the month due to the desire to maintain the air conditioner and fan at full capacity during high temperatures. Consequently, it is crucial to determine the most cost-effective periods to operate your appliances in order to prevent an overage in electricity charges at the conclusion of each month.
More specifically, the price of electricity will decrease to 53.61 euros/MWh today, Friday, August 22, which is approximately 0.28 euros lower than the previous day’s rate of 53.89 euros/MWh, as per data from the Iberian Energy Market Operator.
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
€4.31/MWh will be the lowest electricity price on Friday, August 22nd, between 12:00 and 1:00 PM. The most expensive period will be from 7:00 to 8:00 PM, during which time the price will reach €104.53/MWh. 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
| Time slot | Euros/MWh |
| 00.00-01.00 | 77.1 euros |
| 01.00-02.00 | 72.00 euros |
| 02.00-03.00 | 68.01 euros |
| 03.00-04.00 | 65.20 euros |
| 04.00-05.00 | 70.01 euros |
| 05.00-06.00 | 69.81 euros |
| 06.00-07.00 | 71.03 euros |
| 07.00-08.00 | 78.06 euros |
| 08.00-09.00 | 75.10 euros |
| 09.00-10.00 | 49.67 euros |
| 10.00-11.00 | 15.57 euros |
| 11.00-12.00 | 5.11 euros |
| 12.00-13.00 | 4.31 euros |
| 13.00-14.00 | 5.79 euros |
| 14.00-15.00 | 5.37 euros |
| 15.00-16.00 | 5.01 euros |
| 16.00-17.00 | 5.79 euros |
| 17.00-18.00 | 35.02 euros |
| 18.00-19.00 | 84.56 euros |
| 19.00-20.00 | 104.53 euros |
| 20.00-21.00 | 103.49 euros |
| 21.00-22.00 | 101.59 euros |
| 22.00-23.00 | 94.37 euros |
| 23.00-24.00 | 77.1 euros |
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.
Author: Derek Appleton
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