Price of electricity tomorrow Saturday June 29 | The price of electricity plummets this Saturday with the new rate and leaves one hour below two euros

New fall of the Price of electricity this Saturday, June 29. A recess that leaves the energy cost at an average of 50.54 euros/MWh, 38.3% less than last Friday. However, Spanish consumers will have to pay attention to six ‘prohibitive’ hours in which the cost will exceed 100 euros/MWh.

On the other hand, the electricity rate leaves an hour of electricity really cheap at less than two euros just at the end of the day. The cost of energy could be affected in the next few days by the arrival of a DANA to the peninsula, causing a collapse in prices. It should be remembered that this happens in a context of numerous changes in the VAT on electricity, after the Government implemented an increase at the beginning of the year from 5% to 21%.

Price of electricity per hour

The price of electricity on Saturday, June 29, will register its maximum peak from 10:00 p.m. to 11:00 p.m. when it will be paid at 106.08 euros/MWh. For its part, the minimum The electricity supply will be available from 3:00 p.m. to 4:00 p.m., when it will cost just 1.5 euros/MWh. Also to be taken into account are the periods from 2:00 p.m. to 3:00 p.m. and from 4:00 p.m. to 5:00 p.m., when electricity will cost 10 and 12.76 euros/MWh, respectively, according to data from the Iberian Electricity Market Operator (OMIE).

New rate

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

Last April, negative prices were recorded for the first time in the history of the electricity market. and in March we already saw one of the lowest average pool prices in history for a month, with 20 euros/MWh, half that of the average price recorded in February and 77.5% less than in March 2023, when it stood at 89.6 euros/MWh.

VAT at 21%

Furthermore, in February, after registering an average lower than 45 euros/MWh, the ceiling set in the Royal Decree of urgent measures, electricity temporarily recovered its Value Added Tax (VAT) of 21%, something that continues to be maintained .

The last Council of Ministers last year approved that the VAT on electricity would go from 5% to 10% and that this rate would be maintained until the end of 2024, as long as the condition that MWh prices in the wholesale market were met. remain high, above those 45 euros/MWh.

Specifically, the VAT would become 21% whenever the wholesale price was below that bar in the calendar month prior to the last day of billing. That is, all invoices that include consumption for at least one day in March will have VAT of 21%. Only households with the social bonus are free from this increase, since their VAT will remain at 10% throughout 2024.

The best rate

Now, with generation prices almost at zero euros, the 8.5 million PVPC rate users (3% of the total) benefit from an almost ridiculous cost of electricity, of just four or five euro cents per kwh , by adding the fixed costs to the price of 0 euros of generation. However, those in the free market are paying, at least, ten cents per kW consumed.

Calculation method

Furthermore, the ‘pool’ does not exactly represent the final amount of the price of electricity for a consumer covered by the regulated tariff, since with the entry into force of 2024 a new method of calculating the PVPC was adopted, which incorporates a basket of medium and long-term prices to avoid strong fluctuations, without losing the short-term price references that encourage savings and efficient consumption.

In this way, the proportion of linkage with the ‘pool’ price will be progressively reduced, to incorporate the references of the futures markets, so that these represent 25% in 2024, 40% in 2025 and 55% starting in 2026.

Tips to save on your electricity bill

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

Home appliances

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

– Unplug appliances when you are not home for a long period (vacation). Especially the fridge-freezer which consumes up to 30% of the total consumption of the home.

– Avoid leaving them on ‘stand by’ since they continue spending, even if they do not consume.

– Try to take advantage of the hours of sunshine to dry clothes.

Hot water

It would be recommended that you always:

– Use hot water with caution. It is advisable to be careful not to leave a tap open for too long.

– In general, a water temperature between 30ºC and 35ºC may be enough.

Lightning

It is advisable:

– Progressively replace incandescent and halogen bulbs with LED technology, as it uses ten times less power than incandescent bulbs and has a useful life ten times longer, saving up to 85% of energy.

– Make the most of natural light by turning off the light in naturally illuminated areas and whenever there are open spaces or glass walls that contribute to passive surveillance.