Electricity prices will be paused this Sunday afternoon. Following the Iberian exception that lowers electricity costs, Spaniards can use a window to run the washing machine, switch on the air conditioner without overdoing it, and if feeling brave during a heat wave, try the oven instead.
It will be between 16:00 and 17:00 this Sunday when the price drops to 65.34 euro per megawatt-hour. A record this low hasn’t been seen since May 15. On that Sunday the dip was notable, dropping just over one euro per megawatt-hour across the three evening hours. These price reductions typically happen on weekends, as energy demand from industries and many workplaces is lower during those times.
As a consequence, electricity prices are steep elsewhere: a year ago Spanish households paid an average of 77.60 euros per MWh, which represents a 116 percent increase in today’s terms.
Today’s Sunday average sits around one hundred euros above the so-called bargain hour, landing at 167.06 euros per MWh — about 12.30 percent below yesterday. The most expensive slot runs from 22:00 to 23:00, at 225.88 euros per MWh, according to data from the Iberian Energy Market Operator (OMIE). The result is that electricity remains costly: a year ago households paid an average of 77.60 euros per MWh, a 116 percent difference.
This situation helps explain the surge in inflation seen in the shopping baskets across Galicia over the past 30 years. May prices rose by 11.2 percent compared with the same month last year.
This brief 60-minute relief comes just three days after the Iberian exception was implemented. The decision was published on the Thursday edition of the Official State Gazette. Next Tuesday, June 14, the electricity market will hold an auction to determine prices for the following day, under a new mechanism aimed at capping the natural gas price at an average of 48.8 euros per MWh. The measure will be in effect until December 31, 2023 for Spain and Portugal. Both Spanish and Portuguese residents should begin to notice some relief starting midweek. The cabinet of Teresa Ribera notes that the move is justified by the weak interconnection of the Iberian Peninsula with the rest of Europe.
Officials expect a maximum discount of up to 15.3% for consumers on the regulated rate, PVPC.
The government estimates that consumers on the PVPC regime could see as much as a 15.3% reduction in their electricity bills. Approximately 11 million Spanish households fall under this rate, with the other 17 million on the free market.
For industrial users, the impact is projected to be a reduction between 18% and 20%. An impact report shared with Europa Press suggests a range of 15% to 17% in the first month, then between 13% and 15% in the final month.
Two additional invoices are on the horizon that could alter the bill structure. The Ecological Transition Commission in Congress flagged these measures after they were approved more than a year ago. In short, higher CO2 emission rights costs are expected to slim extraordinary revenues for electricity companies, while fixed costs may be shifted to electricity bills tied to gas and fuels.
Forecast: prices above 200 Euro/MWh again tomorrow
Forecasts indicate that this Monday the average price will rise above 200 euros per MWh, with the national average around 200.62 euros, about 34 euros higher than today and roughly 5 euros more than last Monday. The peak is expected between 238.40 euros per MWh and 22:00, while the dawn period from 3:00 to 4:00 is projected to be the cheapest at about 160.5 euros per MWh.
What consumes the most energy at home?
With the Iberian market situation in view and consumers awaiting potential discounts, the most responsible approach is to conserve energy where possible. A small effort today benefits both household budgets and climate goals. But what appliances consume the most?
Typical home energy users include the refrigerator that runs continuously, the television at 12.2%, the washing machine at 11.8%, standby modes at 10.7%, the oven at 8.3%, computers at 7.4%, freezers at 6.1%, dishwashers at 6.1%, and dryers at 3.3%.
Electrical devices throughout the home account for the majority of energy use, followed by lighting, cooking, hot water, heating, and air conditioning. This breakdown aligns with the latest study from the Institute for Diversification and Saving of Energy. Among continuously operating appliances, the refrigerator leads with about 30.6% of household electricity usage, followed by the TV at 12.2%, washing machines at 11.8%, standby modes at 10.7%, ovens at 8.3%, computers at 7.4%, freezers at 6.1%, dishwashers at 6.1%, and dryers at 3.3%.