The price of electricity in Spain breaks the barrier of 100 euros per MWh and it is at the second highest price in its history. This Tuesday, July 20, it will reach 101.82 euros per MWh, according to the data of the designated electricity market operator (OMIE). Thus surpassing the 99.8 euros per MWh last Friday, July 2.

The last time it exceeded 100 euros per MWh on a daily average in Spain was on January 11, 2002, when it reached 103.76 euros. With these figures, July 2021 will have an even higher average than June 2021 – which was 83.29 euros per MWh– the month with the most expensive electricity price in history.

These prices refer to the wholesale market, which has a direct impact on the electricity bill. Especially those that take advantage of electricity contracts based on the regulated tariff of the voluntary price to the small consumer or PVPC.

The price of gas and CO2 emission rights are the main reasons for the rise in electricity in 2021

Although there are several reasons and reasons, the rise in the price of electricity in 2021 has a main responsible: the price of natural gas and CO2 emission rights, both experiencing historical increases.

In the case of Natural Gas, the average in August shoots up to 36.31 euros per MWh, above the 33 euros of July. This according to official data from the Iberian Gas Market (MIBGAS).

READ:  How the coronavirus affects according to the blood type of each patient

In the case of CO2 emission rights, the average in June was at 52.78 euros by Ton. Julio already surpasses it, placing it in 53.88 euros per tonne, according to data from the European CO2 Trading System (Sendeco2).

The measures of the government of Spain have not mitigated the rise in the price of electricity

On June 24, the government of Spain imposed a measure to reduce VAT to 10% and the suspension of the 7% tax on electricity generation. It will be in effect for three months to try to mitigate the rise in the price of electricity, although it has not worked. During the last weeks it has increased more than 30%, placing it in one of the highest points in the history of the country.

In fact, the price of electricity is expected to continue to rise throughout the summer. Teresa Ribera, third vice president of the Government and minister for the Ecological Transition and the Demographic Challenge, warned during an intervention in the Congress of Deputies.

Leave a Reply