The price of electricity falls 34% this Sunday to 159 euros/MWh

The price of electricity in the wholesale market (pool) has been set for this Sunday at 159.33 euros per megawatt hour (euros/MWh), which represents a decrease of 34% compared to 241.59 euros/MWh the day before.

According to data from the Iberian Electricity Market Operator (OMIE), the maximum price will be registered between 00:00 and 1:00, when it will be 282.48 euros/MWh, while the minimum will be 1.03 euros/MWh between 3:00 p.m. and 6:00 p.m..

Thus, the price of this Sunday, the day of the week in which economic activity decreases and energy demand is lower, will be the second lowest since Russia invaded Ukraine, only behind the 154.7 euros/MWh registered on last Friday.

Despite this decline, the price of electricity almost triples the amount registered a year ago, when it was paid at 65.01 euros/MWh, although it is 23% below the figures for February 24, when the war began in Ukraine. Besides. the price will be 71% below the record price of 544.98 euros/MWh registered on March 8.

So far this month, the average price of electricity has reached 222.04 euros/MWh, 60 euros below the average registered during March (283.3 euros/MWh), the most expensive in history to date , and doubles the price of 2021, which was crowned the most expensive year in the historical series with 111.4 euros/MWh.

The wholesale market prices have a direct impact on the regulated rate or PVPC, to which almost 11 million consumers in Spain are covered, and serve as a reference for the other 17 million who contract their supply on the free market. The National Commission of Markets and Competition (CNMC) has verified that in 2021, in the framework of the upward spiral of energy, around 1.25 million people switched from the PVPC to a rate in the free market at a fixed price .

Extension of the reduction of taxes levied on the electricity bill

In this sense, the military conflict between Russia and Ukraine is causing tensions in the energy market, especially in the case of gasdue to the risk that Russian imports to Europe will be slowed down by the sanctions imposed by the European Union.

The Government has approved a national plan to respond to the economic and social consequences of the Russian invasion of Ukraine that includes the extension of the tax reduction on taxes levied on electricity bills until June 30, and the extension of the electricity social bonus until reaching 1.9 million beneficiary households.

In addition, the European Council has recognized the difficulty of Spain and Portugal in coping with high energy prices, which will allow both countries to benefit from “special treatment” in their response, which goes through set a maximum gas price which is used to generate electricity.

The EU allows the “Iberian exception” to curb energy prices

According to the Third Vice President of the Government and Minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, both countries will propose to the European Commission that this limit be set at 30 euros/MWh.

As for the rest of the European countries, in the United Kingdom the megawatt hour will be paid this Sunday at an average of 203.01 pounds (about 243 euros), while in Germany it will be paid at 74.65 euros; in France, at 217.91 euros; in Italy, at 195.85 euros, and in Portugal, at the same price as in Spain when sharing the market.

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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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