September begins as August ended: with a new record of the average price of the wholesale market, which this Wednesday will chain its third consecutive historical maximum, standing at 132.47 euros per megawatt hour (MWh), 1.49% above the 130.53 euros this Tuesday.
The new record is reached with the gas benchmark in the Mibgas market already above 50 euros / MWh and with the ton of carbon trading above 60 euros for the first time, according to data from SendeCo2.
This maximum comes after the appearance in which the third vice president and minister for the Ecological Transition, Teresa Ribera, refused on Monday to intervene in the prices of the wholesale market for being, she said, contrary to European regulations, in an intervention in which she anticipated that This year the bill of a user covered by the voluntary small consumer price (PVPC), the least expensive, will rise by 25% compared to a historically low 2020.
Ribera proposed reducing the dependence of this rate on the ups and downs of the so-called pool in exchange for the consumer paying a higher risk premium, since now the cost of energy is directly indexed to the price of the pool.
The wholesale market rally is already having an impact on inflation, which has shot up to its highest level in almost a decade in August, with the consequent deterioration in the purchasing power of companies and families in full recovery.
August has ended with the most expensive electricity bill in history, with the average price of the wholesale market touching on average 106 euros / MWh, triple than a year ago, and hydroelectric energy (which does not pay CO2 and has low variable costs) dominating the matching in the pool with some reservoirs below minimums, which has led Ribera to announce a legal reform to contain the discharge of the marshes.
For households, the spectacular escalation of the wholesale market has meant that the receipt of an average user under the PVPC has shot up 46% year-on-year in August and 9.1% compared to July, according to the consumer association Facua .
Its secretary general, Rubén Sánchez, accused the Government on Tuesday of “throwing in the towel” and not “doing what it has to do” after the “regrettable” refusal of the third vice president to intervene in the light. Facua accuses the minister of having “eluded her responsibility by refusing to undertake far-reaching reforms in the sector to lower the cost of the bill and reduce the disproportionate benefits of the energy oligopoly.
Sánchez believes that “the argument that Brussels would not allow certain measures is a mantra in the PSOE” which was already used by the Minister of Finance, María Jesús Montero, when she refused to lower the VAT on electricity, something she finally did. In his opinion, it is “unacceptable that Ribera refuses to remove both nuclear and hydroelectric generation from the daily auction and to submit them to prices set by the Executive”, a measure that both the association and United We can claim.
“The fourth vice president argues that doing so would conflict with community law, despite the fact that France took a quarter of its nuclear production out of the auction in 2011 and it is the Government that periodically establishes its price (known as the Arenh system).” If that measure “confronted” with European law, “France would be outside the EU,” he argued. “We do not believe the mantra of the PSOE that Brussels does not let us.”
Ribera, who in his appearance assured that he is going to “fight” in Europe in the face of this escalation, indicated that it is “very probable” that what the companies have done with the reservoirs this summer is legal, but he reproached the electricity companies that ” not at all “have shown” social empathy “, a value that, he said, is also” listed on the stock market “, after warning them in early August that” this is not the time to maximize profits. ”
While waiting for the proposed solution to reform the semi-regulated tariff (which despite these fluctuations is cheaper than the offers on the free market), Ribera’s big bet is the two “structural” measures that he has proposed to lower the invoice in the In recent months through two separate bills: the fund to remove the cost of the oldest renewables from the receipt and the cut to hydraulic and nuclear due to the increase in cost of CO2.