Thursday, February 2

The price of electricity exceeds 260 euros/MWh this Saturday and touches a new annual maximum

The average price of electricity in the wholesale market rises 8.73% this Saturday compared to this Friday and will exceed the level of 260 euros per megawatt hour (MWh), thus reaching a new maximum so far in 2022, at heat from the rise in the price of natural gas after the outbreak of the war in Ukraine.

Specifically, the average price of the ‘pool’ for this Saturday will be 261.11 euros/MWh, about 21 euros more expensive than that of Friday, located at 240.13 euros/MWh.

It would be necessary to go back to December 24, the dates on which the historical peaks were registered in the ‘pool’ with daily averages above 300 euros/MWh, to find a more expensive day.

By time slots, the maximum electricity price for this Saturday will be between 8:00 p.m. and 9:00 p.m., with 300.70 euros/MWh, while the minimum, of 237.14 euros/MWh, is registered between 05:00 hours and 06.00 hours.

These high records practically throughout the day will occur on a day like Saturday, in which, normally, prices are relaxed compared to those marked from Monday to Friday due to lower demand.

The prices of the ‘pool’ have a direct impact on the regulated rate -the so-called PVPC-, to which almost 11 million consumers in the country are covered, and serve as a reference for the other 17 million who have contracted their supply in the free market .

The price of gas, high by the Russian attack in Ukraine

Following the start of Russia’s attacks on Ukraine on Thursday, natural gas futures soared. However, this Friday its price on the Dutch TTF platform, a benchmark in Europe, was relaxed, falling by just over 20%, to 102.770 euros/MWh.

In the case of Mibgas, the operator of the Iberian market, the price of natural gas this Friday stood at 113.05 euros/MWh, after registering an increase of 29%.

The rise in electricity prices since the middle of last year is mainly explained by the high prices of gas in the markets and carbon dioxide (CO2) emission rights, at all-time highs.

Compared to just a year ago, the pool price for this Saturday will be 466% higher than the 46.09 euros/MWh of February 26, 2021.

2021, the most expensive year

Electricity closed 2021 as the most expensive year in the historical series, with an average price of 111.93 euros/MWh due to the upward spiral registered in the pool in the second half.

The average daily market price last January was 201.72 euros/MWh, 235.3% higher than the average price for the same month last year and 15.7% lower than December 2021.

The Government has extended until April 30 the reduction of taxes included in the electricity bill paid by all consumers in order to mitigate the negative effect that the rise in the price of electricity is having on citizens.

Specifically, the reductions from 21% to 10% of VAT and the special electricity tax from 5.11% to 0.5%, the legal minimum, have been extended until April 30. However, the suspension of the 7% generation tax paid by companies will only be maintained, for now, until March 31.