Tuesday, October 19

The price of the wholesale market of electricity begins October unbridled and with another historical record: 216 euros / MWh

The average daily price of electricity in the wholesale market will break another historical record this Friday and the megawatt hour (MWh) will skyrocket to 216.01 euros, according to data from the designated electricity market operator (OMIE), collected by Europa Press .

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This new increase in electricity 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 in all-time highs. The Minister of Foreign Affairs, José Manuel Albares, travels to Algeria this Thursday to discuss with the Government of Algeria the problems that may occur with the transport of gas through the Maghreb-Europe gas pipeline, in the face of the Algerian country’s conflict with Morocco.

Compared to a week ago, when the price of electricity in the Spanish wholesale market was 172.97 euros / MWh, the price increase is 24.88%. Comparing it with a year ago (41.48 euros), the rise is 420.76%, that is, it has multiplied by more than five.

The highest price this Friday will be between 9:00 p.m. and 11:00 p.m., when it will reach 230 euros / MWh, while the lowest will be registered between 3:00 p.m. and 6:00 p.m., when it will trade at 198.77 euros.

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 with the aim of temporarily containing 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.

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.


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