Do you ever wonder what the best time is to turn on the washing machine according to today's electricity prices? You'll probably do so if you're here. And the fact is that today's electricity prices are causing a lot of concern, and rightly so! At Holaluz, we want to explain to you in a simple way how the price of electricity is determined today, and every day, because we also know that worrying about it can be very exhausting!
The price of electricity has increased significantly recently due to a combination of the current system of electricity generation based on expensive and unsustainable fossil fuels, the energy crisis and the recovery of activity after the pandemic.
The wholesale electricity market, also known as the “pool”, has its own system for determining the price of electricity today... and forever. Energy producers sell their energy to buyers on a daily basis. Under this model, bids are submitted for the upcoming 24 hours. All energy is sold at the price of the most expensive bid necessary to cover the demand for energy. That means anyone who has an electricity tariff indexed to the market price has to keep track of the price of electricity at all times.
The price of your electricity (kWh) depends on the electricity company you're with. There are two types of companies: those that belong to the regulated market and those in the free market. If you're with a company in the regulated market, the price of a kWh varies every hour, every day, 365 days of the year.
In the free market, each company sets its own terms and its own price. At Holaluz we believe that the best option, especially for you as a customer, is to pay a fixed and low price.
At Holaluz we're convinced that day-to-day life is complex enough without our customers having to worry about timetables, variability, energy prices, storms or heat waves... Our customers have the right to enjoy themselves, worry-free.
Keep in mind that the price of a kWh of electricity varies every hour if you are on a PVPC rate, which is determined daily in a kind of electricity stock market that sets the price of electricity for the next day. It's public and you can find out the price every day through the OMIE (Operator of the Iberian Energy Market).
That's why we created the Fair Rate: our fixed electricity rate. An electricity tariff that means you can rest easy in the knowledge you're paying a fair price for your 100% green energy, today and every day.
If we could cover all electricity requirements with 100% green energy produced by solar panels on people's homes, the price of energy would come down forever. That's why we believe that the Rooftop Revolution is the only solution for bringing down prices once and for all. The volatility of electricity prices is inevitable until we change the way we produce and consume energy.