The average price of electricity in the wholesale market today reaches 306.33 euros per megawatt hour (MWh), which means that it will be the most expensive Saturday in history and the second highest record to date.
In this way, the price of electricity remains above the level of 300 euros for the third consecutive day, despite the slight decrease in its price, something common on weekends due to the fall in demand, in comparison with that of this Friday, December 17, which registers the maximum value of the historical series with 309.2 euros megawatt hour.
The cost of electricity is 27.88% when compared to the same day a week ago, while it rises 523.8% compared to December 18, 2020, that is, it has multiplied by more than six.
The maximum price of electricity for this Saturday will be between 9:00 p.m. and 10:00 p.m., with 342.03 euros megawatt, while the minimum price will be 265.77 euros between 05:00 and 06:00: 00 hours, according to the data published by the Iberian Energy Market Operator (OMIE).
The prices of the ‘pool’ have a direct effect on the regulated tariff, the so-called PVPC, to which almost 11 million consumers in the country are welcomed, and serves as a reference for the other 17 million who have contracted their supply in the free market.
The rise in prices in the electricity market in recent months is mainly explained by high gas prices in the markets and carbon dioxide (CO2) emission rights, at record highs this year.
December already exceeds 200 euros on average
December began as a month marked by great volatility, with declines in the average of some days to around 100 euros megawatt hour and with certain rises that widely exceeded the level of 200 euros and now 300.
However, since December 9, the price of electricity has not dropped below 200 euros and in the last week it has rampaged, placing the average monthly price at 235, that is, 35 euros more than last October, the month with the most expensive average to date.
December invoice record
According to an analysis by Facua, if the same rates were maintained for the rest of the month, the last invoice of the year would reach 134.45 euros for the average user, 94.1% above the 69.28 euros in December 2020.
The average user’s bill so far this year has increased by 15.1% compared to 2018. Thus, compared to 77.18 euros three years ago, the average monthly bill now reaches 90.87 euros. However, the Government continues to trust that this year households will end up paying the same as in 2018.
“The electricity bill for December would have to be negative for President Sánchez and Minister Ribera to fulfill their promise that this year consumers will pay the same as in 2018 once the CPI has been discounted. Thus, for that objective to be reached, a The average user would have to receive an invoice in which his company would return 12 euros at the end of this month, “says the general secretary of Facua, Rubén Sánchez.
Until now, the package of tax reductions approved by the Government includes the reduction of VAT from 21% to 10%, the suspension of the 7% generation tax paid by companies, and the reduction of the special electricity tax of 5.11% at 0.5%, legal minimum.
The association is calling on the Executive to impose for at least six months a minimum discount of 50% on the electricity bill subject to the semi-regulated PVPC tariff of the vast majority of families, excluding only those with higher incomes, run by companies energy companies in proportion to their market shares.
George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.