There are two main factors:
Posted: Sat Dec 14, 2024 5:57 am
When electricity costs zero in the electricity market, why isn't the bill free?
The price of electricity can be zero, or even negative, during those hours when it is possible to cover demand entirely with renewable energy .
In the wholesale electricity market, an hourly auction is held, in which electricity prices are set for the next 24 hours.
What factors make the price low, zero, or even negative?
The high supply of renewable energy available . Given the great development of photovoltaic energy in recent years, during the central hours of the day a large amount of energy from solar photovoltaic and also wind energy is supplied to the market.
Demand met by renewable energy . During the hours of the day when electricity demand is somewhat lower and there is also a very significant contribution of renewable energy, demand can be met entirely by clean energy.
It is at these times that the electricity market price can reach zero, or even negative.
How does this zero or negative price influence the saudi arabia girls whatsapp number free market and the PVPC rate?
In the case of the PVPC rate , the price applied to your electricity consumption is governed by the daily wholesale market, which establishes a price that varies for each hour of the day.
In the case of a free market rate , if you have a fixed-price contract , you are not subject to the volatility of the wholesale market.
And if the market price is zero euros or negative, shouldn't the bill be free?
Both regulated market customers and free market customers with a contract indexed to the wholesale market will see their bill reduced. However, it will not be zero or negative because the bill summarises the price of all the hours consumed in a period, so even if one hour were at zero or negative cost, the other 23 hours of the day will have another designated price.
In addition, the electricity bill includes a series of other concepts that continue to apply and are defined by the Government and the National Commission of Markets and Competition (CNMC).
If you don't know which market you currently belong to, you can check it in the header of your invoice.
The peace of mind of fixed-price electricity rates
If you sign up for a fixed-price tariff, you'll benefit from stability and predictability in your electricity bills . This is especially important for households and businesses looking to control their budgets without having to worry about daily fluctuations in the electricity market.
Fixed-price electricity rates offer you:
Protection against volatility : Fixed-price tariffs protect you from unexpected spikes in electricity prices, ensuring that even when market prices are extremely high, your bills will remain the same.
Simplicity and convenience : Choosing a fixed-price rate simplifies the process of paying your bills, since you will know in advance how much you will pay each month, regardless of changes in the electricity market.
Fixed-price tariffs offer an ideal solution for those seeking to avoid surprises on their electricity bills, providing an effective tool for financial planning and managing the risks associated with the volatility of the electricity market.
If you are not yet a customer of Endesa, we recommend the Conecta rate, the cheapest fixed-price rate with which you will not have to worry about the hours in which you use your appliances, since the price of the kWh is always the same . In addition, we offer you a very competitive price in the power term compared to other electricity rates on the free market.
The price of electricity can be zero, or even negative, during those hours when it is possible to cover demand entirely with renewable energy .
In the wholesale electricity market, an hourly auction is held, in which electricity prices are set for the next 24 hours.
What factors make the price low, zero, or even negative?
The high supply of renewable energy available . Given the great development of photovoltaic energy in recent years, during the central hours of the day a large amount of energy from solar photovoltaic and also wind energy is supplied to the market.
Demand met by renewable energy . During the hours of the day when electricity demand is somewhat lower and there is also a very significant contribution of renewable energy, demand can be met entirely by clean energy.
It is at these times that the electricity market price can reach zero, or even negative.
How does this zero or negative price influence the saudi arabia girls whatsapp number free market and the PVPC rate?
In the case of the PVPC rate , the price applied to your electricity consumption is governed by the daily wholesale market, which establishes a price that varies for each hour of the day.
In the case of a free market rate , if you have a fixed-price contract , you are not subject to the volatility of the wholesale market.
And if the market price is zero euros or negative, shouldn't the bill be free?
Both regulated market customers and free market customers with a contract indexed to the wholesale market will see their bill reduced. However, it will not be zero or negative because the bill summarises the price of all the hours consumed in a period, so even if one hour were at zero or negative cost, the other 23 hours of the day will have another designated price.
In addition, the electricity bill includes a series of other concepts that continue to apply and are defined by the Government and the National Commission of Markets and Competition (CNMC).
If you don't know which market you currently belong to, you can check it in the header of your invoice.
The peace of mind of fixed-price electricity rates
If you sign up for a fixed-price tariff, you'll benefit from stability and predictability in your electricity bills . This is especially important for households and businesses looking to control their budgets without having to worry about daily fluctuations in the electricity market.
Fixed-price electricity rates offer you:
Protection against volatility : Fixed-price tariffs protect you from unexpected spikes in electricity prices, ensuring that even when market prices are extremely high, your bills will remain the same.
Simplicity and convenience : Choosing a fixed-price rate simplifies the process of paying your bills, since you will know in advance how much you will pay each month, regardless of changes in the electricity market.
Fixed-price tariffs offer an ideal solution for those seeking to avoid surprises on their electricity bills, providing an effective tool for financial planning and managing the risks associated with the volatility of the electricity market.
If you are not yet a customer of Endesa, we recommend the Conecta rate, the cheapest fixed-price rate with which you will not have to worry about the hours in which you use your appliances, since the price of the kWh is always the same . In addition, we offer you a very competitive price in the power term compared to other electricity rates on the free market.