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    The price of electricity goes down slightly: these are the most expensive and cheapest hours on Wednesday, June 1


    June 1, 2022 - CE Noticias Financieras

     

      Since last summer, the price of electricity has not stopped breaking one record after another, placing the cost of this energy at unimaginable levels, with March being the most expensive month of the year, registering a historic rise in which the average price of the "pool" reached 544.98 euros megawatt hour (MWh). Although the arrival of April seemed to leave this trend behind, reducing the average price of the pool by 32.42% with an average of 191 euros, its cost remained almost 200% higher than a year ago. The same happened with May, which although it closed with an average of 187 euros, four euros lower than April, this still represents a price 178% more expensive than the same month last year.Therefore, despite the fact that it seems that a stability in the regulated electricity tariff is being confirmed, it is still at very high levels with respect to 2021. In this sense, on the first day of June, the cost of energy remains above the 200 euro mark, placing the average price of the pool on Wednesday at 210.45 euros per megawatt hour (MWh), which is three euros less than those recorded on Tuesday, according to provisional data published by the Iberian Energy Market Operator (OMIE).The main reason for this decrease is in renewable generation, especially in the irruption of photovoltaic energy, since during the month of April generation through photovoltaic panels increased by 52% compared to the same period of 2021, contributing to lower energy prices during central hours.In this line, last March 29, the Government approved a National Plan to face the impact of the war in Ukraine that includes a series of measures such as the tax reduction on the taxes levied on the electricity bill until next June 30 or the extension of the electricity social bonus to reach 1.9 million beneficiary households.Likewise, the governments of Spain and Portugal have obtained permission from Brussels to apply a mechanism to contain the cost of gas, in which Europe has established a limit of an average of 50 euros for one year, which will mean that the electricity market will not exceed 140 E/MWh. In addition, the average consumer bill could fall by around 40%, having an effect mainly on users of the regulated tariff but also on those of the free market.Regardless of these measures and factors to alleviate the cost of electricity, the escalation of prices in the electricity bill is a reality that has been affecting thousands of citizens since last year. So much so, that the levels continue to mark very high records compared to last year, given that this Wednesday the price will be 143.13% more expensive than the 86.56 euros/MWh of June 1, 2021.This exponential increase that has suffered the cost of the megawatt hour of electricity has also made more and more people trying to find cheaper alternatives or new methods that make them achieve savings in the electricity bill at the end of the month.According to data provided by OMIE, these will be the most expensive and cheapest hours:The electricity bill is calculated using two prices, the one paid for the contracted power and the price resulting from the kilowatts consumed during the month.The tariff created by the Spanish Government last July generated a certain lack of control for the population in general, since by establishing a series of brackets, those people who do not have an agreed tariff with their distributor, suffered and still suffer today notable changes in the price depending on the time of the day. In this sense, the high electricity prices have a direct impact on the almost 11 million users in Spain who are covered by the regulated tariff, i.e., the so-called PVPC, and also serve as a reference for the other 17 million who contract their supply in the free market.

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