Light sections: when to avoid and how to get real-time official prices

For residents and businesses in Spain, the electricity bill has become a nightmare. What drives the hourly price fluctuation, and why is it different every day? What is the best way to consult it?

Spain’s electricity costs changed dramatically on June 1. Since then, it has began to charge for light sections, which are divided into three time periods with varying pricing. However, the reality is a little more difficult.

The goal of this modification is to cut consumption during peak hours, when companies and businesses are open and sustainable energy cannot meet demand.

We’ve all learnt the basic rule: average rates for flat sections, low prices for valley sections, and high costs for peak sections. Unfortunately, it isn’t as straightforward as that.

Within a part, prices vary greatly, and in the peak section, there is a “cursed hour,” when prices are significantly higher, which can occur in the morning or afternoon.

Let’s look at why this happens and how we can get real-time pricing every day.

Furthermore, the government has made significant adjustments since the new electricity pricing was established, which must be taken into account.

The electricity bill is due on June 1, 2021. The electricity rate changed dramatically last spring. These were the details of their news:

  1. Time slots are imposed on all customers. The cost of electricity varies depending on the time of day.
  2. There are three time slots, each with a different pricing for electricity.
  3. It is possible to contract two separate consumption powers.
  4. Fixed taxes (now known as tolls) are still in place in two places: Charges for access tolls and electricity systems
  5. Invoice format has changed.
  6. News VAT and tolls are reduced from September 14th.

This shift in rates, combined with the increasing price of electricity due to a lack of rain and wind, increased usage due to the pandemic and lockdowns, and a shortage of clean and cheap energy in Spain, has caused the electricity bill to double in price for many individuals.

People’s objections and a surge in electricity-related inflation prompted the government to authorize shock measures to cut the cost.

How can I save money on my electricity bill?

On September 14, a Decree Law was passed that cut the Special Tax on Electricity (IEE) from 5.11 percent to 0.5 percent, the legal minimum.

The IVPEE (Income Tax on the Value of Electric Energy Production) was also repealed, and the VAT was decreased from 22 to 10%.

Although Minister Teresa Ribera promised a 30% reduction in electricity costs, and the President of the Government, Pedro Sánchez, even went so far as to say that “we would pay the same for electricity in 2021 as we did in 2018,” the reality has been very different, and these measures have gone unnoticed on many invoices.

With the start of the new year, many of these tax benefits came to an end. The administration, on the other hand, has opted to prolong certain of them.

Furthermore, two new measures will be approved in 2022 that will lower the electricity bill, though they will not be implemented until the second half of 2022: the creation of the National Fund for the Sustainability of the Electricity System and the action on the remuneration of CO2 not emitted from the electricity market.

At the moment, none of these efforts are reflected in the electricity bill, which remains at levels that are more than double those of a year ago.

As a result, many citizens are switching companies or contracts in quest of the best deal with online light shop.

What should I consider in order to save electricity?

When it comes to lowering our electricity bills, there are a few factors we have no control over and can’t do anything about: taxes and the hourly price of electricity.

Other aspects, on the other hand, are within our control, and if we tailor them to our requirements and consumption, we can save 20 to 30% on our electricity bill without changing the rate.

It’s about the “cursed hour,” the contracted power, and the light parts.

The power you have contracted is the first aspect that determines the price of your bill in 2022.

This is the label given to the most we can consume in a given amount of time. If we have contracted a power of 3.5 KW, or 3,500 W, and we connect an oven that consumes 2,000 W and a washing machine that consumes 1,600 W, we will surpass the agreed power (2,000 + 1,600 = 3,600 W), causing the leads to leap and the light to go out.

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