ARCHIVED - Spanish government forecasts March electricity price to be half that of January
Rates on the wholesale market peaked in Spain during the first month of the year, coinciding with Storm Filomena
The price of electricity will continue to fall in March, ending up at half the average price registered in early January, Spanish government spokeswoman and Treasury Minister María Jesús Montero has announced.
The government representative stressed that the peak prices earlier in the year were circumstantial and said that the downward trend is expected to continue in coming months thanks to “structural measures” the Ministry for Ecological Transition is bringing in.
The peak price was registered on the wholesale market on 8 January at 94.99 euros per megawatt/hour (MWh), the second highest figure seen since January 2002. However, the average price reported for the first half of this month is just 27.57 euros per MWh.
These fluctuations only affect consumers on the regulated market who pay the PVPC (Voluntary Small Consumer Price) tariff, as the tariffs paid by those on the free market are set by their providers and are not affected by wholesale market rate changes.
Those on the regulated market can also expect their bills to change as of 1 April, when changes to the pricing system come into force that will see pricing vary depending on the time of day. There will be peak rate periods from 10 am to 2 pm and from 6 to 10 pm. Off-peak rate periods will run from midnight to 8 am, and weekends and bank holidays will also be considered to be off-peak. During the remaining periods (8 to 10 am, 2 to 6 pm and 10 pm to midnight) a medium-level, ‘flat’ rate will apply. These changes will be implemented automatically for those with the PVPC tariff, and will allow them to save on their bills if they plan their electricity use around the cheaper times of day. They will also have the option to change the amount of power contracted at different times of day to allow for further savings.