The megawatt is a unit of measurement for electrical power. Changes in the wholesale electricity markets can cast doubt on their impact on the electricity bill, and it is important to know what we can do on a day-to-day basis so that the changes are as little noticeable as possible. Many people don't know what is a megawatt.
For this reason, we are going to dedicate this article to telling you what a megawatt is, what its characteristics are and its importance in the electricity bill.
what is a megawatt
To understand what this unit of measurement is and its dimensions, we must start from the basic unit: the watt. The watt is the unit of measure for electricity in the International System of Units. A unit of watt is equivalent to producing 1 joule per second (1J/s) and is responsible for measuring the speed of energy conversion.
Once the concept is clear, we can multiply the weight in these units in the same way that we do it in meters and kilometers or in liters and kiloliters. Therefore, a megawatt is a unit of power equivalent to one million watts. A megawatt-hour is a unit of measure, and although it is the unit used to display prices in the wholesale market, it is not the same unit that is displayed on your electricity bill.
The electricity bill is expressed in kilowatt-hours that represent the electricity consumption of each home, that is, 1000 watt-hours are consumed. Why is it reduced to kilowatts instead of megawatt hours used? The reality is that the average house in Spain consumes around 300 kilowatts a day, well below one megawatt (MWh).
How does it affect the electricity bill?
The kWh price defines the amount that each customer must pay for the amount of energy consumed. Selectra explained that for customers on the free market, the price per kWh will depend on the price of electricity and the type of marketer contracted, while for customers on the regulated market (PVPC rates) the cost per kWh will depend on the price of electricity per kWh The cost price per megawatt hour, which is based on the electrical system implemented by the Ministry of Industry through an "energy pool" in which energy is bought and sold.
In the case of a regulated market, the “Invoicing of Energy Consumption” section will reflect what customers have to pay for their actual consumption, depending on what the company charges per kilowatt-hour or the price set through the “ Energy Pool”.
For clients of the regulated market, the Organization of Consumers and Users (OCU) has been denouncing that the three-hour discrimination section (peaks, flats and valleys) that came into force last June did not break down energy costs because the price per kWh is different. To the "Energy Consumption Bill" must be added the "Contract Electricity Bill", which is a fixed term to pay even if there is no consumption. Also, in a regulated market, you can choose between two powers depending on your spending habits.
The rest of the bill is for tolls, taxes, and other charges. In fact, before natural gas prices rose, energy costs represented 35% of the bill. Given that around 15% of electricity is transported and distributed, it can be said that the activities strictly necessary for electricity supply (generation and distribution) account for only 50% of the bill.
The other 50% goes to taxes (slightly more than 20% of the total, including VAT and electricity tax) and additional costs related to energy policy: subsidies for renewable energies (18%), subsidies for additional costs of Illes Balears and Electric Transport in the Canary Islands (4%), amortization of the historical interest rate deficit (3%) and aid in another percentage (5%). That is, half of the bill is a key political cost to reduce its cost.
Learn more about the megawatt to save
Podo points out that in a house, almost 50 percent of the consumption comes from air conditioning and heating equipment, while 23 percent corresponds to appliances and lighting. Therefore, to save 60% energy, the energy company recommends using a microwave oven instead of a traditional oven, which also saves time. One of the changes that will have the greatest impact on reducing the electricity bill is the change from traditional light bulbs to low consumption ones. If you are a client of a regulated market, the best way to save is to focus your consumption on the hours when electricity is cheaper.
Megawatt Price Range
The price of a megawatt depends directly on today's kilowatt-hour price, which refers to the cost of contracted electricity, precisely specified in kilowatts (kW). This determines how many devices you can connect at the same time, that is, it establishes a power limit that you cannot exceed, preventing the lead from jumping, so you must think about how much you are consuming to know how much power you consume. You have to contract for your home or business contract.
The current kilowatt-hour price range, and the megawatt price range, are based on the electrical system implemented by the Ministry of Industry through an “energy pool” in which energy is bought and sold. The companies in charge of public energy services sell in kilowatt-hours, but market forces, large companies, determine wholesale prices, and the State is the one who regulates retail prices. Then, To find out how much a megawatt hour is worth, you have to consider many factors.
In this model it is recommended not to have too much contract light if it is not necessary on a day-to-day basis. The lower the power, the lower the price of the kW lamp. So depending on your situation, it is very convenient to save as much as possible as we recommend in the blog (for example, the cost is not the same for a single person as it is for a family with two children), and how you should use your appliances, because some appliances consume more than others, and there are ways to make your consumption more efficient and economical, knowing what the cheapest time is and taking advantage of it in your consumption.
I hope that with this information you can learn more about what a megawatt is and what its characteristics are