With the confinement of most of the population in their homes for over two weeks, the price of electricity has dropped by 42.8%.

The average price of ‘pooled’ energy dropped to 27.7 euros per megawatt hour (Mwh). This price is negotiated on a daily bases by all the power stations connected to the national grid.

The drop in price is no surprise as the drop in energy consumption by industry has been tremendous, as was expected. The price was also affected by the drop in the price of natural gas.

On top of that, renewable energy sources such as hydroelectric and wind-generated energy have increased measurably, providing nearly 52% of the energy pool. March has been unusually wet and windy, after all.

What all this means is that the average domestic electricity bill has been reduced by around 12% on average in the February bill. However, it should be remember that the actual cost of electricity generated only amounts to about a third of the total bill (which is the part that has worked out cheaper). The one of the other two thirds corresponds to line use and installations while the other is purely taxes, such as IVA.

Lastly, electricity might be mildly cheaper per kilowatt but households are using a lot more of it. According to a study carried out by Selectra, a household of four people will see their bill increase by 26 euros because of a greater daily consumption. A household of only two would see a 16% increase.

Editorial comment: what you lose on the swings you gain on the roundabout.

(News: Spain)