The rise in the price of light comes at the worst possible time. In a context where Spain is affected by a cold wave with record temperatures, last Friday increased the price to 94.00 euros per megawatt hour (MWh), how does this affect the citizen in their electricity bill?
Reason for the increase in light
The rise in prices over the last few days is attributed to three main reasons:
- Increased demand due to the cold wave.
- Rise in carbon dioxide (CO2) prices.
- Increase in the price of natural gas.
How do I know if I am affected by the rise in the price of electricity?
It’s true that not everyone is affected, as it depends on the rate you have contracted. This is where the crucial difference lies:
- PVPC (Voluntary Price to the Small Consumer): with this tariff the price of electricity is controlled by the Government and changes according to the law of supply and demand: the price rises on the days and hours when Spaniards consume most electricity, and falls when consumption collapses (normally at night).
- Free market: if you have contracted electricity through an electricity retailer, you will pay the price of the tariff you have contracted, you do not depend on the increase in supply and demand.
As you may have deduced, this increase in the electricity bill only affects those who have contracted the PVPC tariff, which is approximately 40% of Spanish households.
Do you want some tips to save on your energy consumption? Visit this post: How to save energy in winter?
Consumption of renewable energies
On 11 January, @RedElectricaREE, published the following tweet, in which we can see how 47.4% of the electricity generated comes from renewable energies. In the energy pool, first come the offers from renewables (wind, solar, hydraulic), which are cheaper because the raw material with which they create electricity (wind, light, water) is free, and then nuclear and finally fossil fuels.
Do you want to save on your electricity bills? With the installation of your own renewable energy system for self-consumption you can enjoy greater independence from supply and demand, since you can cover your energy consumption with your own means. Contact us!