The light rebounds this Tuesday after four days of falls

The average price of electricity on the wholesale market The downward spiral of the last four days will be cut this Tuesday and will rebound by 8.6% compared to this Monday, thus placing itself again above the level of 100 euros per megawatt hour (MWh).

Specific, the pool will mark an average of 104.36 euros / MWh for this Tuesday, compared to 96.08 euros / MWh this Monday Those that had taken four consecutive days of falls, reaching its lowest value since the beginning of November, according to provisional data published by the Iberian Energy Market Operator (OMIE) collected by Europa Press.

Despite this rise, the this Tuesday’s price will be the third lowest so far in December and it will be very far from the historical maximums of last week, when it reached 383.67 euros / MWh.

The maximum price, between 9:00 p.m. and 10:00 p.m.

In any case, the cost of electricity in the wholesale market continues to skyrocket when compared with the records of the same day of the previous year, when the price stood at 20.04 euros / MWh. The This Tuesday’s increase compared to December 28, 2020 is 420%, that is, five times more expensive.

By time slots, the maximum price of electricity for this Tuesday will be between 9:00 p.m. and 10:00 p.m., with 176.03 euros / MWh, while the minimum will be 8.06 euros / MWh between 4:00 and 5:00.

The prices of the pool They have a direct impact on the regulated tariff (the so-called PVPC), which is covered by almost 11 million consumers in the country, and serves as a reference for the other 17 million who have contracted their supply in the free market.

The average price in December is around 246 euros / MWh

The increase in price in recent months in the electricity market is mainly explained by the high gas prices in the markets and carbon dioxide emission rights (CO2), at all-time highs this year.

December began as a month marked by great volatility, with falls in the average of some days to around 100 euros / MWh and with certain rises that far exceeded the level of 200 and 300 euros / MWh.

Despite the falls in recent days, the the cost of electricity has run wild and the average monthly price is already around 246 euros, that is, almost 50 euros more than last October, the month with the most expensive average to date.

The Government has extended until April 30 the tax cut included in the electricity bill paid by all consumers in order to alleviate the negative effect that the rise in the price of electricity is causing 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.

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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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