This system, hurriedly knocked together in a panic when the auctioning system blew up in its face, has a price that fluctuates by the hour. Basically; you won’t know how much the kilowatt per hour charge will be until 24 hours in advance.
For this reason, the Consumers Rights Association, Facua, said that this system is illegal because the consumer doesn’t know how much the product is costing him at the time of consumption.
Anyway, to head this complaint off at the pass, so to speak, there is now a web page where from 19.00h each day you will be able to see what the price is, depending on the time of day.
Generally speaking, between 20.00h and 22.00h is when it is most expensive and between 04.00h and 05.00h, is when your kilowatt hour is cheapest. We’re not talking about cheap night rates, which no longer exist; we talking about standard domestic electricity prices.
So, we have gone from a system where we knew how much we would be paying for the next three months, to one where we have no idea what it will cost us at 20.00h until 19.00h, which is when the next 24 hours of pricing comes up.
The Government believes that this system could bring savings of up to 300m euros per year, although it is not clear for whom, whereas the Comisión Nacional de los Mercados y la Competencia (CNMC) calculates that the average consumer can save up to 36 euros a year.
However, as this system has generated so much controversy, it still has to be approved by the Board of Ministers. The CNMC, for example, has called for this system, which will come into being on the 1st of April (April Fools day, no less) to ‘disappear.’
Food for thought: thanks to the Government constantly adding extra costs to the domestic electricity bill, this new system will mean that only 14.8% of the bill actually corresponds to the amount of electricity consumed – the rest is charges for transport, infrastructure, various fees, etc, etc.