WHAT IS THE AVERAGE MARKET PRICE OF THE INDEX THIS MONTH? (June 1 to 26)

We arrived at the moment I announced at the start of these 6 months of brutal savings. July 1 is the intersection where we will have to STOP and choose to go straight or turn right or left. I know many of you hate having to make choices. But life is like that.

Let’s go by points, to make it simpler.

1. In June, he continues to pay to keep the indexed rate until the last day. The average remains below 3 cents per kWh. From July 1st, forget these ridiculous prices. Do not be surprised. And even. He took advantage of it, he did very well; if you haven’t taken advantage of it, pay attention the next time I give you such advice. Had 6 months of almost free electricity.
2. The index will rise in July, at June prices, to more than 11 cents per kWh.
3. The Network Access Tariff (TAR) rebate, which is currently negative at -9.5 cents, will drop to -1.2 cents. That’s an increase of 8 cents.
4. There is a company – Goldenergy – who have already officially assured me that they will not raise prices, despite increased ART. This becomes one of the best options, but you will need to be an ACP member.
5. Endesa still hasn’t given me an answer whether or not it will increase the corresponding amount of ART. I’m waiting for an answer. They’re still thinking about the offices upstairs.
6. The other companies will charge the new TAR to customers, lowering the price per kWh so as not to increase as much, but they will probably remain above the regulated tariff, i.e. they are no longer an option to consider . EDP ​​will continue to be one of the most expensive on the market.
7. In July, you will have to choose to stay on the index for another month (at “normal” prices) or to switch to the Goldenergy tariff, as an ACP member (costs €4.5/month). As other companies’ pricing becomes known, I will update this information. I’m looking forward to Endesa.

Let’s get to the details.

(Almost) free electricity ends July 1 (ERSE has increased grid access tariffs)

You will have to pay around 11 or 12 cents per kWh in indexed terms. At SU Electricity, you’ll pay about 16 cents. You will always have a saving of 40%. But at Goldenergy you will have a rate of 8 cents if you are an ACP member and 13 cents if you are not a member of anything. Now we have to choose.

I made this video showing in real time how I calculate the price you will pay next month if you have an indexed rate.

Every Sunday I write a post with the average for the month so far so you know when to go and make the most of those savings. One of those moments has arrived.

For those who don’t know, indexed electricity tariffs are those in which you pay electricity at the “factory price” (originally – it’s called OMIE – where all the suppliers buy it to resell it to you ) and pay a small fixed profit margin to that supplier.

What is the risk you run? If the price of electricity suddenly increases at the source, that month you will pay dearly; but if the electricity drops a lot, you will also save a lot.

I made this chart so you can see the difference. From now on I will also compare with the cheapest companies with fixed rates so that you can see the difference compared to the indexed rate (I use Luzboa as a reference). There is also speculative prediction on what will happen in July, to prepare. As you can see, there will be a huge difference between the June index and the July index. And suddenly, there is a lower tariff than the indexed one (Goldenergy/ACP).

JEvery Sunday, I put the average price per kWh that they would pay if they were on the indexed market and I compare it with the supply available on the market.

In this case, Goldenergi’s ACP rate is 8.36 cents, which becomes optimal. And below the option at 13 cents without any conditions.

Now you just have to decide if it is worth paying €4.50 per month as an ACP member (with the respective advantages) to save 3 cents per kWh compared to the index (with the values ​​of June). In the unconditional option, it always pays (by a hair’s breadth) to stay on the indexed market.

Market average indexed electricity – June 1 to 26

How to monitor the price of electricity? just go www.omie.es and check the price of electricity on the MIE from time to time. As you can see below, over the 3 weeks of June, the average is 94.73 MWh.

According to my calculations, this value – applying an APPROXIMATE calculation – with the data so far will pay about 3 cents per kWh on your June bill. This will be the last month almost FREE.

With exactly the same values, I simulated the price it will have in July, after modification of the network access tariff. As you can see, you will now pay 11.2 cents per kWh. Your bill will be multiplied by 5. But what you need to understand is that EVEN IF YOU will continue to be one of the cheapest. It’s going to be hard to put that in the head of some of you. I’m sure many will come here and say, “Didn’t I warn you that was a mistake? Now they are paying all of a sudden…”. I hope you have already understood how it works, so that you don’t feel frustrated or cheated. They have all the data on the table to make smart decisions. If they are in the index, only switch when they have a cheaper kWh at another company. Until then, whatever amount they pay is less than they would pay elsewhere. I can’t say it any clearer. But do your calculations, in your head, not mine or anyone else’s.

The MIBEL adjustment mechanism (which is added to this price) has also been at zero for several months. Therefore, the risk of these increases at this time is very low.

A kilowatt-hour, for those who don’t know, is every 1,000 watts/hour you consume. For example, if you use a vacuum cleaner with a power of 1000 W, if you vacuum for one hour, you will consume 1 kWh. Inhale anyway, but if you are a customer of one company you will pay 4 or 5 cents, if you are a customer of another you will pay – for the same consumption – more than double or triple. That’s why it’s so important to get around and be aware of electricity prices in the market and change whenever you find cheaper.

Most Portuguese like to know what they have and hate surprises, so they generally prefer to pay more but are guaranteed to know what is going to happen. The important thing, in this phase of very high inflation, is not to waste even one euro. If you can pay 10, why would you rather pay 80? It’s not fair. As soon as the price goes up, leave and come back to the best of the moment.

To find companies that have indexed tariffs, use the ERSE simulator or google “indexed electricity tariffs”, contact the companies and compare the price per kWh you pay with the prices they offer you. They are the ones who take care of the transition from your current company to the new one. You have nothing to do. I am not affiliated with any company. You choose the one you like.

The point to correct is that if you want to save, you have to be aware and be an informed person. Like people who pay attention to the weather. You will find this information here every week.