The average daily price of electricity in the wholesale market will return to its upward path tomorrow after the decreases registered at the weekend and will mark the highest Monday in recorded history. Specifically, the price will rise 67% this Monday compared to that registered on Sunday, to 186.46 euros per megawatt hour (MWh), according to data from the designated electricity market operator (OMIE), collected by Europa Press.
Compared to a week ago, when the price of electricity in the Spanish wholesale market was 174.68 euros / MWh, the increase is 6.7%. Compared with a year ago, the price of electricity is multiplied by almost six.
The highest price this Monday will be between 8:00 p.m. and 9:00 p.m., when it will reach 249 euros / MWh, while the lowest will be recorded between 2:00 a.m. and 3:00 a.m., when it will trade at 141.59 euros / MWh.
Escalation in the price of raw materials
After the decrease registered on Saturday and Sunday due to the lower demand, the price of electricity rose again after registering last Friday the most expensive level to date, with a price in the wholesale market of 216.01 euros / MWh . This situation occurs in the midst of a rise in the price of all raw materials linked to energy around the world, such as gas, oil and coal, which at the same time triggers CO2 rights, also at record highs.
In this context, the price of electricity in Spain has previously marked its highest historical prices in both July and August, and September has exceeded both records, to an average of 156.14 euros in the ninth month of the year. However, the Government has already approved a shock plan that will temporarily contain these increases, by lowering taxes and reducing some extraordinary income from electricity companies, so it will not be reflected in consumer bills. Even so, as it is a global problem, the inflationary trend in all types of energy could be transferred to the industry, which could cause pressures in its activity or the transfer of prices to consumers.
‘Profits fallen from the sky’
The reduction of the VAT to 10%, the suspension of the 7% tax on electricity generation, the discount of the electricity tax at 0.5% or the expected contribution of 2,600 million euros by the electricity companies from the so-called ‘benefits fallen from the sky’ are some of the measures undertaken by the Spanish Government.
In any case, the price of the quotation that is published every day, as the Executive has already warned, will continue at high levels and rising, at least until March of next year, at which time these measures are expected to decline. Meanwhile, the bill should continue to fall in price despite the rise in the wholesale market.