Price of electricity tomorrow Sunday July 7 | The price of electricity changes trend this Sunday July 7: nine hours in negative or at zero euros with the new rate to plug in appliances

Saturday, July 6, 2024, 7:36 PM

The price of electricity this Sunday, July 7, has unexpectedly changed its momentum and has suffered a slight increase that places the average at 34.71 euros/MWh, an increase of 2.38% compared to last Saturday. Despite everything, the electricity rate once again presents several time slots in negative or zero euros so that consumers can connect their electronic devices. It should be remembered that these very cheap prices below zero euros are not translated as such in the bill since there are a series of fixed costs for the electricity consumer for tolls, charges and system adjustments.

The bad news for regulated tariff customers is that electricity prices are once again prohibitively high for three hours in the last few days of the day, which will be above 100 euros/MWh and which they should avoid. All of this is taking place in a period of multiple changes in the VAT on electricity rates. It has gone from 5% to 21%, and is currently at 10% after the average price of electricity on the Spanish wholesale market during June exceeded 56 euros on average, the second highest so far this year.

Price of electricity per hour

The price of electricity on Sunday, July 7 will record its maximum peak from 10:00 p.m. to 11:00 p.m. when the rate will be 104.58 euros/MWh. Attention should also be paid to the pre- and post-periods from 9:00 p.m. to 10:00 p.m. and from 11:00 p.m. to 12:00 a.m. when the rate will be around 100 euros/MWh. On the other hand, the minimum The price will be between 4:00 p.m. and 5:00 p.m., when it will be at -1.01 euros/MWh. Also to be taken into account are the prices between 9:00 a.m. and 6:00 p.m., when it will be between -1 and 0 euros/MWh, according to data from the Iberian Electricity Market Operator (OMIE).

Price of electricity per hour

Time slot Euros/MWh
00.00-01.00 56,55 euros
01.00-02.00 48,95 euros
02.00-03.00 44,16 euros
03.00-04.00 44,9 euros
04.00-05.00 44,16 euros
05.00-06.00 56,55 euros
06.00-07.00 56,55 euros
07.00-08.00 56,68 euros
08.00-09.00 24,87 euros
09.00-10.00 -0,01 euros
10.00-11.00 -0,51 euros
11.00-12.00 -0,78 euros
12.00-13.00 -0,66 euros
13.00-14.00 -0,02 euros
14.00-15.00 -0,78 euros
15.00-16.00 -1 euros
16.00-17.00 -1,01 euros
17.00-18.00 0 euros
18.00-19.00 3,32 euros
19.00-20.00 35,94 euros
20.00-21.00 59,57 euros
21.00-22.00 100,73 euros
22.00-23.00 104,58 euros
23.00-24.00 100,25 euros

New rate

During the month of May, the average bill for a household with the PVPC tariff was 54 euros (48.85 euros in April). This increase comes after a month of April with totally unknown prices in the wholesale market (13.3 euros/MWh), with even moments of negative prices. Despite this increase, VAT remains at its usual level of 21% since the reduction of VAT 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. In March, one of the lowest average pool prices in history for a month was recorded, at 20 euros/MWh, half 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 below 45 euros/MWh, the limit 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 of 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, provided that the condition that the prices of MWh in the wholesale market remained high, above 45 euros/MWh, was met.

Specifically, VAT would be 21% provided that the wholesale price in the calendar month prior to the last billing day was below this threshold. In other words, all bills that include consumption for at least one day in March will now have a VAT rate of 21%. Only households with the social bonus are exempt from this increase, since their VAT will remain at 10% throughout 2024.

The best rate

Now, with generation prices at almost 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, adding the fixed costs to the generation price of 0 euros. However, those who are in the free market are paying, at least, ten cents per kWh 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 the link to 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% from 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 standby as they continue to spend, even if they do not consume.

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

Hot water

It would be advisable to always:

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

– Generally, 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 lifespan ten times longer, 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.

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